Nongshim Co., South Korea’s largest instant noodle maker, is turning to Netflix’s animated hit, KPop Demon Hunters, to spice up its global ambitions.
Late last month, the company rolled out limited-edition Shin Ramyun, Shrimp Crackers and a brand-new Shin Toomba Sauce, all dressed in vibrant packaging inspired by the animated adventure that blends K-pop flair with demon-slaying actions.
Fans of the film would recognize the foods instantly, as the Huntrix heroines – Rumi, Mira and Zoey – are often shown fueling up on instant cup noodles and K-snacks before saving the world.
That recognition appears to be paying off. At home, all 6,000 special-edition Shin Ramyun cups sold out in less than two minutes after launch, spurring expectations that Nongshim could see a rebound once the products reach shelves overseas.
The company said it plans to release the special-edition versions, all featuring Rumi, Mira and Zoey, the K-pop boy band Saja Boys and even the tiger mascot, Derpy, in the US and other markets soon.
FIGHT FOR THE THRONE
The rollout comes as Nongshim faces mounting competition.
Its crosstown rival Samyang Foods Co. has ridden the viral success of its fiery Buldak noodles into Europe, the Americas and Asia, while smaller player Ottogi Co. is expanding its foothold in the US with help from a global sensation K-pop group BTS member Jin, who serves as brand ambassador for its Jin Ramen line.
Once the undisputed leader in Korea’s ramen market, Nongshim has watched its dominance erode rapidly abroad.
The company is now banking on the cultural cachet of Netflix, betting that fans – already exposed to foods resembling its classics onscreen – will slurp their way to a Nongshim comeback.
Investors seem to share that optimism, as its shares have surged more than 17% since the announcement of the KPop Demon Hunters-edition release in mid-August, closing Wednesday at 426,500 won ($306.70).
On the day of the special edition announcement, the shares climbed 6.3%.
The rally follows months of stagnation and a symbolic blow in May last year, when Samyang’s market capitalization surpassed Nongshim’s for the first time.
As of Friday, Nongshim’s market value stood at 2.6 trillion won after ending down 0.7% at 424,000 won, dwarfed by Samyang’s 11.7 trillion won.
PROMISING SIGNS
In the second quarter ended June, Nongshim posted 40.2 billion won in operating profit, down 8% from a year earlier, on sales of 867.7 billion won, up less than 1%.
Analysts, however, expect the Netflix collaboration could mark a turning point, especially with evidence that brand recognition is already lifting global sales.
Even before the special editions hit stores, global sales of Shrimp Crackers were climbing, helped by the fact that the snack appears in Kpop Demon Hunters.
In one scene, character Zoey is shown munching on crisps that resemble the longtime Nongshim staple.
The outlook for the company’s business in North America in the second half looks bright, said Shim Eun-joo, an analyst at Hana Securities Co., noting the stock’s rally following the announcement of the company’s collaboration with KPop Demon Hunters.
Shim also highlighted that Nongshim raised US retail prices by more than 10% in July, a move expected to lift the company’s profitability in the third quarter.
She also forecast that Shin Ramyun Toomba will soon enter major retailers in the world’s largest consumer market, such as Walmart.
Hana Securities has set Nongshim’s target price at 540,000 won.
By Sookyung Seo
skseo@hankyung.com
Jennifer Nicholson-Breen edited this article.
