Orion is no longer satisfied from the brisk sales of Choco Pie globally. It is stepping up efforts to capture the global potato snack market ahead of the summer peak season.
Unlike general snacks such as wheat and corn, potato snacks have a high proportion of raw potatoes and minimize processing, thereby associating it to a healthier snack option which accelerates its growth globally. Currently, there are 6 potato snack brands available in the Korean, Chinese, and Vietnamese markets, with a total of approximately 70 varieties categorized by flavor. Last year, Orion recorded Won 874 billion (US$630.57 million) in potato snack sales, with overseas sales accounting for 73% of the total. Among the 9 global Orion mega-brands with annual sales exceeding Won 100 billion (US$72.15 million), 4 including Poca Chip, O! Gamja, Swing Chip, and Yegam are potato snacks.
Notably, in China, O! Gamja recorded Won 260 billion (US$187.6 million) in sales as a single brand last year, while Swing Chip rose to become the 2nd largest brand by surpassing Choco Pie sales in the first quarter of this year. Potato snacks such as O! Gamja, Swing Chip, and Yegam accounted for 41% of Orion China’s subsidiary’s total sales last year, driving its overall growth.
With product localization and production efficiency, Orion Potato Snack has continued to grow at 9% annually over the past 3 years and is on the verge of achieving Won 1 trillion (US$721.5 million) in annual sales.
With the summer snack season in full swing, the company is leading the ‘seasonal snack’ trend in Korea by introducing Poca Chips and Swing Chips made with new potatoes last June. Once the expansion of the production line at the Cheongju factory is completed in the 2nd half of the year, production capacity will increase by 50%.
In China, the company is expanding its market by successively launching new products that reflect local tastes and these include O! Gamja (local name Ya! Tudou) Garlic Butter flavor, Swing Chip (Haoyouqu) Jianshuiqing and Citrus Taco flavors amongst others.
Potato snack sales in China increased by 21% in the 1st quarter of this year compared to the same period last year. Once the ongoing expansion of the Swing Chip production line is completed, supply volume will increase by 25% compared to the current level.
In Vietnam, the company is continuing its efforts to capture the potato snack market by launching Pocachip (local name Ostar) sour cream flavor and Swingchip (Swing) taco flavor for local consumers who enjoy sports, while also expanding dedicated snack display areas. In Vietnam, Pocachip has surpassed Lay’s, the world’s number one potato snack brand and has firmly maintained its position as the No.1 potato snack brand in Vietnam since 2017.
