Arumchan Kimchi Enjoying High Popularity

The National Agricultural Cooperative Federation (NACF), also known as Nonghyup, has sold Arumchan Kimchi since the second half of 2002 and it has gained strong popularity among housewives.

Its sales have steadily risen to 10.3 billion won in 2006 from 9 billion won in 2005 and 7.2 billion won in 2004. NACF aims to raise its sales to 13.7 billion won this year.

The sharp rise in sales reflects the effect of the growing brand power of Arumchan. Its 11 plants produce kimchi and sell them under the joint brand name of Arumchan.

The joint brand strategy has proven successful so far. On top of brand power, the recipe for the success of the kimchi is the use of homegrown materials and a tough quality control system. It uses high-quality peppers, seasonings and cabbages under a standardized process.

NACF also put a greater focus on strengthening its marketing through its outlets nationwide and the Internet (www.arumchan.com). Customers also can get the kimchi at shopping.nonghyup.com. It also plans to expand exports to Japan, New Zealand and other countries via online sales.

Demand for kimchi in Korea is estimated at 1.5 million tons annually, with 500,000 tons worth 600-700 billion won being sold domestically. South Korea's demand for kimchi produced at plants is expected to continue to rise despite falling per capita consumption.

NACF, established in 1961 to improve the economic and social status of farmers, has pursued various projects to benefit farmers.

Nonghyup wants Arumchan Kimchi to help the nation maintain its status as the original kimchi maker. It also seeks to provide products that consumers can eat with trust, and to sell kimchi with identical tastes nationwide. Nonghyup also aims to diversify its kimchi market to Europe and Southeast Asian nations.

Arumchan Kimchi has won a series of top brand awards and been selected as a favorite brand among consumers.