Orion confectionery posts .1 billion in sales in China in 2015

Confectionery products from Orion posted record sales of over 1 trillion won (828 million U.S. dollars) in the Chinese market. Orion said on Friday that its Chinese affiliate posted 200.4 billion won (166 million dollars) in operating profit on 1.33 trillion won (1.1 billion dollars) in sales last year. The figures are the highest since Orion made inroads into the Chinese market after establishing a production plant in 1997. Sales were up 14.8 percent and operating profit up 23.3 percent year-on-year, respectively. The most popular product was "Oh! Gamja (Potato)," whose sales amounted to 236 billion won (195 million dollars) last year alone. The product, which debuted in China in 2006, posted 170 billion won (141 million dollars) in sales in 2013, exceeding those of Choco Pie (150 billion won or 124 million dollars) for the first time. An Orion source said, “As the income level increased in China, potato cookies gained popularity than cookies made of rice or flour.”

In addition, six products including Choco Pie, Yegam, Goraebap, and Xylitol chewing gum, and Cuti Pie, which is sold exclusively in China, posted a combined total of 1.025 trillion won (850 million dollars) in sales, or 77 percent of the Orion affiliate’s overall sales. Orion said these six products are "mega brands," whose each sales surpass 100 billion won (83 million dollars) per year. Orion remains No. 2 in the Chinese market by beating over local companies. No. 1 player is "Rigley," the U.S.-based chewing gum producer.

An Orion source said, “Growth of the Chinese confectionery market only stood at 2 percent, but Orion posted sales growth of more than 10 percent.” The company plans to step up marketing in China’s high-end confectionery market by selling premium products including "Market O" and "Dr. You." The company also plans to step up promotion of "Swing Chip" and "Choco Songi."

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