[THE INVESTOR]Major food and beverage companies in South Korea are seeking ways to diversify their business portfolios to recover from a drawn-out slump, industry officials said on Oct. 19.

The country’s biggest confectionery Orion said it has joined with the National Agricultural Cooperative Federation (NongHyup) to venture into the food market. Under the deal, the two will construct a facility for processed food by the end of 2017.

Orion said it aims to advance into the rapidly growing market for premium processed meals made out of rice and wheat amid the rising number of single-person households.
Makers of milk are also struggling to diversity their business portfolios to meet the sluggish consumer demand and overall slump in the market.

Maeil Dairies Industry, the leading dairy company, has expanded its business to run Australia-based coffee chain Paul Bassett. M’s Seed, an affiliate of Maeil Dairies, operates about 75 Paul Bassett coffee shops across the country.

Other dairy companies like Namyang Dairy Product have also expanded their business lineup into the dessert and coffee sectors.

(theinvestor@heraldcorp.com)