MEDIA / H-Story

Second UK factory on the way… Producing substrates along with mushrooms
Expanding the mushroom business in Australia… “Planning to enter the US market”

At a Tesco Extra on the 5th (local time), located on the outskirts of London, products labeled Shiitake Mushrooms and Oyster Mushrooms were prominently displayed in the vegetable section. The mushrooms looked similar to those sold in Korea and had the same distinct flavors.

These mushrooms were produced in the UK by Hyundai Corporation Holdings. In 2018, Hyundai Corporation Holdings established Smithy Mushrooms Holdings in a joint venture with Green Co., Ltd. & Production Farm, an agricultural company based in Cheongdo, Gyeongsangbuk-do. Together, they set up a mushroom farm in Lancashire.

 

▲ November 5 (local time) at a Tesco Extra on the outskirts of London. A display of shiitake mushrooms and oyster mushrooms produced by Smithy Mushrooms Holdings, the UK subsidiary of Hyundai Corporation Holdings. / London=Reporter Jeong Jae-hwon

The local farm mainly produces shiitake mushrooms and oyster mushrooms. Although they are classified as typical “oriental mushrooms,” given their origin and main consumer culture, they have been in high demand in recent years as an alternative to meat in the UK. In particular, oriental mushrooms are perceived as a ‘healthy food’ and are becoming a high-value-added product

Hyundai Corporation Holdings is delivering products to all 950 of Tesco stores and 230 of Marks & Spencer stores in the United Kingdom. Last month, the company began supplying 69 Tesco Express stores, which are small-sized stores operated by Tesco, and plans to expand its supply to all 2000 of them in the future.

Tesco is one of the world’s largest retailers, along with Walmart in the US and Carrefour in France. Tesco stated in a press release last year, “The plant-based food boom is increasing demand for exotic, once-unknown mushrooms, and British specialty grower Smithy Mushrooms, based in West Lancashire, England, has nearly tripled its business over the past three years.”

 

▲ Shiitake mushrooms (left) and oyster mushrooms (right), produced and supplied to Tesco UK by Smithy Mushrooms Holdings, the UK subsidiary of Hyundai Corporation Holdings.
/ London=Reporter Jeong Jae-hwon

Hyundai Corporation Holdings opened its second mushroom factory in the UK last November, making it the largest oriental mushroom farm in the country. The completion ceremony was attended by key executives, including Chairman Chung Mong-hyuk and Vice Chairman Kim Won-Kab.

The company plans to utilize the expanded production facility to increase its production of shiitake mushrooms and oyster mushrooms from the current 400 tons per year to 800 tons per year by 2026. It also aims to diversify its varieties to include king oyster mushrooms and lion’s mane mushrooms. The UK subsidiary’s annual sales, which have remained around KRW 14 billion from 2019 through this year, are expected to exceed KRW 17 billion starting next year.

A company spokesperson said, “The completion of the second factory not only allows us to increase our production capacity but also enables us to produce substrates locally in the UK, which we previously relied on imports for. We can now use British markings (such as the Union Jack) on the packaging of our products, which boosts consumer confidence.”

 

▲ The second factory of ‘Smithy Mushrooms Holdings,’ the UK mushroom production and distribution subsidiary of Hyundai Corporation Holdings./ Courtesy of Hyundai Corporation Holdings

Hyundai Corporation Holdings was established in October 2015 as a spin-off from Hyundai Corporation, a general trading company. It is engaged in the licensing business utilizing the HYUNDAI brand, wholesale of livestock products, and mushroom production and sales.

Hyundai Corporation Holdings is expanding its Asian mushroom business to Australia. Its Australian mushroom production subsidiary generated around KRW 18 billion in sales from 2022 through this year and plans to establish its own shiitake mushroom substrate production facility, following the example of the UK. The company is also searching for partners and considering investments in North America.

A representative from Hyundai Corporation Holdings said, “We are transferring our British business know-how to various parts of the world, and our unique brand value in the global oriental mushroom sector is being recognized. As our successes grow and our brand value expands, we expect to generate synergies across our operations in each country.”

 

December 16, 2024
ChosunBiz