Bioport, Costco-proven hit SKU and global distribution…Overseas growth formula driven by follow-...

[Edaily Reporter Shin Ha-yeon] Independent research firm ValueFinder published an ‘F&B Industry Report’ on the 9th, saying, ‘Amid structural growth constraints in the domestic market, F&B companies that generate recurring sales through overseas distribution networks and long-term supply track records offer high investment appeal in terms of mid- to long-term growth and valuation re-rating.’ The report named Orion, Lotte Wellfood and Bioport as related companies, noting that Bioport‘s overseas growth formula of expanding follow-on SKUs and sales regions on the back of its long-term Costco supply references is gaining momentum. No investment rating or target price was provided.

According to the report, growth in domestic sales volume of Korea’s F&B industry is constrained by rising consumer price sensitivity and demographic and household changes such as low birth rates, aging and more single-person households. In 2025, nominal consumer spending rose 1.7% YoY, but real consumer spending fell 0.4%, and consumers‘ purchase criteria are widening beyond price and taste to health and nutrition. Overseas, by contrast, rising awareness of K-food lifted Korea’s agri-food exports from USD 6.1bn in 2015 to USD 10.41bn in 2025, a CAGR of about 5.5%. However, as early sales growth does not guarantee long-term profit growth, the report notes that it is important for repurchases of a hit SKU to lead to repeat orders from retailers and to wider store coverage and more follow-on SKUs, and that companies with long-term supply references can lower the market entry burden for follow-on products compared with new entrants.

Founded in 2004 and listed on KOSDAQ in 2025, Bioport specialises in snacks and beverages, manufacturing and selling snacks, liquid tea and pouch drinks on its own production facilities. Its main export item, liquid tea, has been supplied to global membership warehouse club Costco since 2014. On a 1H26 basis, revenue breaks down into merchandise 28.9%, liquid tea 28.0%, snacks 27.4% and beverages 15.2%, and 1H26 revenue came to KRW 43.2bn with operating profit of KRW 2.3bn.

ValueFinder analyst Jeong Woohyeok said, “Hit SKU Citron Ginger Tea has posted cumulative sales of KRW 97.3bn since entering US Costco in 2018. The monthly average sales of Calamari Snack, launched afterwards, are about KRW 650mn, 2.7-2.9x higher than squid snacks launched before Citron Ginger Tea (about KRW 220-240mn). Costco keeps fewer than 4,000 SKUs per store, making competition among new suppliers intense, whereas Bioport is well positioned to pitch follow-on SKUs based on the sales records and supply experience built through long-term dealings. It is expanding sales regions beyond North America into Canada and Mexico, and is also diversifying sales channels with new products such as cassava, tofu and edamame chips targeting vegan/wellness and PB channels.”

He added, “Bioport launched a K-beauty cosmetics distribution business in March with Philippine S&R Shopping, a customer it has supplied for 12 years, and reorders followed immediately, confirming the potential for recurring sales. It is pursuing entry into Costco Japan and major US retail channels and has set a 2027 cosmetics distribution sales target of KRW 5bn. It is also expanding health and wellness drinks such as a ginger shot and blueberry puree, with the blueberry puree confirmed for Costco in Australia, Taiwan, China and Japan. In October, it decided to acquire a 51.01% stake (including the CEO‘s portion) in Family Farm, maker of sweet potato snack ’Basakhago‘, whose demand surged after being featured on ’I Live Alone‘, planning to raise annual capacity about 2.3x from about 134 tons to 312 tons; the sales gain after the expansion merits attention.”