Korea Yakult, a household name in the yogurt and fermented dairy product market in Korea, said it achieved sales of 1 trillion won ($940 million) in 2017, five years after it spun off its instant noodle division Paldo. 

In 2012, Korea Yakult spun off Paldo following the release of its hit chicken-based instant noodles Kkokkomyeon in 2011. Korea Yakult’s sales after the spin-off dwindled to around 900 billion won. 

According to data from the Financial Supervisory Service on Monday, Korea Yakult’s sales hit 1.3 trillion won in 2017, marking a 5.2 percent rise from 980 billion won in the previous year. In the same period, its operating profit hit 108 billion won, a 4.3 percent increase on-year, maintaining a double-digit operating profit rate, which is calculated by net profit divided by turnover.

The company had achieved 1 trillion won of sales in 2008, but has since then struggled due to the stagnating fermented drinks market as well as slow growth of its new businesses such as in the education and medical device sectors.

In 2016, Korea Yakult expanded its door-to-door sales service by hiring more Yakult sellers, in particular middle-aged female employees in yellow uniforms who sell the company’s products door-to-door from mobile carts. 

The company also diversified its product lineups, such as cold brew coffee and cheese crackers, which quickly became best-sellers and went viral on social media among young consumers.

As of the end of last year, the company was operating a total of 8,000 mobile carts that Yakult sellers hop on to deliver fresh products to houses and offices, the company said. 

Buoyed by its strengthened sales, Korea Yakult also launched ready-to-eat food brand EatsOn along with a door-to-door delivery service. Its products called Meal Kit have become popular among single households who cook at home but still want restaurant-quality items such as Spanish tapas Gambas al Ajillo.

The company also launched an online mall called hyFresh, which allows customers to make reservations online to receive products. 

“We will continue to grow as a total food retail company by maximizing our potential on both online and offline channels, especially focusing on making sure our customers receive fresh products through convenient delivery services,” said Kim Dong-ju, marketing director at Korea Yakult.

By Kim Da-sol (ddd@heraldcorp.com)