Nongshim

Nongshim Co., Ltd. (Hangul: 농심; Hanja: 農心; Revised Romanization: Nongsim; Translation: Farmer's Heart) is a South Korean food and beverage company headquartered in Seoul, South Korea. Nongshim was founded in 1965 under the name Lotte Food Industrial Company. The name was changed to Nongshim in 1978.[3]

Nongshim Co., Ltd.
Nongshim Co., Ltd.
Native name
주식회사 농심
Nongshim
FormerlyLotte Food Industrial Company
KRX: 004370
IndustryFood and Beverage
FoundedSeoul, South Korea (September 18, 1965 (1965-09-18))
Headquarters112 Yeouidaebang-ro, Dongjak-gu, Seoul, South Korea
Number of locations
Area served
Worldwide
Products
  • Shin Ramyun
  • Shin Ramyun Black
  • Neoguri
  • Soon Noodle
  • Jjawang
  • Matchampong
  • Shrimp Crackers
  • Onion Rings
  • Baeksan Mountain Water
Revenue ₩2,181.62 billion
US$1.83 billion (2015)[1]
₩118.28 billion
US$99.3 million (2015)[1]
₩117.33 billion
US$98.5 million (2015)[1]
Total assets ₩2,418.71 billion
US$2.03 billion (2015)[1]
Total equity ₩1,646.47 billion
US$1.38 billion (2015)[1]
ParentNong Shim Holdings Co Ltd
Websiteeng.nongshim.com
Footnotes / references
[2]

The current logo was published in 1991, which took a form of a seed.[4] In 2003, the business switched to a holding company system and became a subsidiary of Nongshim Holdings.

Nongshim is the largest instant noodles and snack company in South Korea. At the end of 2015, Nongshim had 2.57 trillion won in assets and 2.81 trillion won in sales.[5] It runs 11 factories worldwide, has subsidiaries in Korea[6][7] and overseas, and operates in more than 100 countries.

History[8]

1965-1979

On September 18, 1965, Nongshim was established under the name Lotte Food Industrial Company in Seoul, South Korea. When Nongshim introduced its first ramyun, Lotte Ramyun, in 1965, there were 7 other companies in the market.[3]

As a second mover in the ramyun industry, Nongshim focused on research and development. Along with South Korea's first commercialized snack, Shrimp Cracker (Hangul: 새우깡; Romanization: Saewookang; 1971), Beef Ramyun (Hangul: 소고기라면; 1970), and Nongshim Ramyun (1975), Nongshim achieved 35% market share in the mid-1970s. On March 6, 1978, Nongshim changed its name from Lotte Food Industrial Company to Nongshim Co., Ltd.[8] However, the Shrimp Cracker is known to have been a counterfeit of the Calbee's Kappa Ebisen brought into the market in 1964.[9]

1980-1989

During the 1980s, Nongshim invested highly on machinery, equipment, and systems. The Anseong factory was built in 1981 to specialize in powder soup, used to flavor the ramyun.

Many of Nongshim's famous ramyun products were introduced during the 1980s: Neoguri (Hangul: 너구리; Seafood Udon Soup; 1982), Ansungtangmyun (Hangul: 안성탕면; 1983), Jjapagetti (Hangul: 짜파게티; 1984) And Shin Ramyun (Hangul: 신라면; 1986). Cup- and bowl-type noodles were also introduced during this period.

Nongshim's market share reached 40% in 1984, and became a leading company of the market in March, 1985. With Shin Ramyun (1986), the most beloved instant noodle brand in South Korea, Nongshim reached 46.2% of the ramyun market share in 1987, 53.2% in 1988, and 58% in 1989.[10]

1990-present

On January 1, 1991, Nongshim introduced its new corporate identity (CI): Nongshim Seed.[11] The Gumi factory was built in September 1991. Since 1994, Nongshim has used computer-integrated manufacturing for production.

The Asan factory was built in April, 1993, and it specializes in potato and rice snacks. In April 1994, Nongshim introduced aseptic production system for cold noodles. In 2007, The Noksan factory was built to specialize in non-frying noodles and well-being (health) products.

During the 1990s, Nongshim focused on exporting and expanded their business in the global market.[12] In July, 1997, Nongshim began sponsoring the national Baduk Championship: Shin Ramyun Cup Baduk Championship.[13]

Nongshim built factories in China in the late 1990s and early 2000s: Shanghai (1996), Qingdao (1998), Shenyang (2000), a second factory at Qingdao (2002), and Yanbian (2015). Originally there was difficulty entering the Chinese market until a male-themed advertising campaign for the very spicy Shin ramyun implied virility from eating such a peppery product. In the U.S, Nongshim built a factory in Los Angeles in 2005.[14]

Advertising

Nongshim has been carrying out marketing and advertising that informs the characteristics of its products based on individual product brands rather than corporate brands. It also sets the criteria that Chairman Shin Chun-ho suggested: 'Advanced ads should not precede products.[15]'Nongshim Chairman Shin Chun-ho is known to directly participate in the development of product names and advertising concepts.

Operation

Affiliates

Nongshim has 10 affiliates: Nongshim Holdings, Taekyung Nongsan, Youlchon Chemistry, Mega Mart, Nongshim Communication, NDS (Nongshim Data System), Nongshim Engineering, Youlchol Foundation, Hotel Nongshim, and Nongshim Development.[16]

Global operations

Nongshim's headquarters is located in Seoul, South Korea. Nongshim products are now exported to over 100 countries around the world.[17] As of 2016, Nongshim has 11 manufacturing plants around the world: Korea (Anyang, Ansung, Asan, Gumi, Busan, Noksan), United States (Rancho Cucamonga, CA), China (Shanghai, Qingdao, Shenyang, Yanbian).[18][19] There are 7 sales distribution offices in 4 countries outside of South Korea: United States, Australia, Japan, and China.

Products

Nongshim products include ramyun (instant noodles), snacks, and bottled water. There are more than 40 brands of ramyuns, produced by Nongshim, including South Korea's most popular ramyun brand, Shin Ramyun (1986).[20] Nongshim has recently introduced new noodle brands in 2015: Jjawang[21] (Hangul: 짜왕; Etymology: Portmanteau of Jjajangmyun (Black bean noodle) and Wang (Hangul: 왕; Hanja: 王; Translation: King); Translation: King of Jjajangmyun) and Matchampong (Hangul: 맛짬뽕; Etymology: Portmanteau of a Korean adjective mat (taste) and Champong (spicy seafood noodle soup); Translation: tasty champong noodle soup).[22]

There are varieties of snack products including Shrimp Cracker (Hangul: 새우깡; Romanization: Saewookkang; 1971),[23] the first commercialized snack in South Korea and Onion Rings (Hangul: 양파링; Romanization: Yangpa Ring; 1983), which is famous for its sliced-onion-ring shape.

Since 2012, Nongshim is producing its own bottled water called Baeksan Mountain Water,[24] which is slowly filtered by Baekdu Mountain volcanic rock.

References
  1. "Nongshim Co Ltd (004370:Korea SE)". businessweek.wallst.com. Archived from the original on September 23, 2016. Retrieved May 30, 2016.
  2. "Nongshim USA :: Our Products". Nongshim. Archived from the original on 24 April 2014. Retrieved 25 April 2014.
  3. "너구리·신라면…'농심' 보듬은 신춘호 회장의 경영철학". 미디어펜 (in Korean). Retrieved 2016-06-22.
  4. "농심". www.nongshim.com (in Korean). Retrieved 2018-03-17.
  5. "농심, 2015년 영업익 1182억… 전년比 61%↑ - 머니투데이 뉴스" (in Korean). Retrieved 2018-03-17.
  6. "농심". www.nongshim.com (in Korean). Retrieved 2018-03-17.
  7. "농심". www.nongshim.com (in Korean). Retrieved 2018-03-17.
  8. "농심". www.nongshim.com. Retrieved 2016-06-22.
  9. "Our Story - Calbee Global: Calbee, Inc".
  10. "1969년 삼양 점유율 83%·2012년 농심 67%…영원한 승자는 없다". superich.heraldcorp.com. 2013-01-11. Retrieved 2016-06-22.
  11. "GLOBAL NONGSHIM". eng.nongshim.com. Retrieved 2016-06-22.
  12. "Nongshim to boost global expansion". koreatimes. 2014-11-27. Retrieved 2016-06-22.
  13. "[神의 한 수]'아시아 바둑 올림픽' 인기 힘입어 신라면 중국 매출 급성장". news.donga.com. 2016-04-19. Retrieved 2016-06-22.
  14. "농심". www.nongshim.com. Retrieved 2016-06-22.
  15. "사나이 울리는 辛라면에서 세계인 울리는 SHIN RAMYUN으로". shindonga.donga.com (in Korean). 2012-09-20. Retrieved 2019-03-27.
  16. "GLOBAL NONGSHIM". eng.nongshim.com. Retrieved 2016-06-23.
  17. "Nongshim to boost global expansion". koreatimes. 2014-11-27. Retrieved 2016-06-23.
  18. "GLOBAL NONGSHIM". eng.nongshim.com. Archived from the original on 2016-03-22. Retrieved 2016-06-23.
  19. "South Korean Food Manufacturer Nongshim Opens Bottled Water Plant In China With Targeted Sales Of 237.6 Million Dollars In 2017". koreaportal. 2015-11-09. Retrieved 2016-06-23.
  20. "Record-breaking noodles". Retrieved 2016-06-23.
  21. Herald, The Korea (2015-04-27). "Nongshim launches 'Jjawang' noodles". www.koreaherald.com. Retrieved 2016-06-23.
  22. Herald, The Korea (2016-03-17). "Competition intensifies over premium instant noodles". www.koreaherald.com. Retrieved 2016-06-23.
  23. "Big milestone for diminutive snack". Retrieved 2016-06-23.
  24. "Bottled water competition heats up". koreatimes. 2014-06-27. Retrieved 2016-06-23.
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