Cell Biotech’s DUOLAC to capitalise on entry into Taiwan’s Costco for further expansion in Chinese-speaking markets

24-Sep-2024 - Last updated on 24-Sep-2024 at 02:25 GMT

DUOLAC’s Kids Probiotics Chewable Tablet was recently launched at Costco stores in Taiwan. ©Cell Biotech

Cell Biotech-owned supplement brand DUOLAC expects its recent entry into Taiwan’s major supermarket chain to accelerate expansion in the greater China region, amid strong efforts to promote Korean probiotics globally.

DUOLAC has officially entered all 14 Costco stores in Taiwan, where the company has previously been distributing its probiotic raw materials via B2B suppliers.

The South Korean firm highlighted the importance of this milestone, which underscores the “recognition of its products’ excellence”.

“The entry into Costco, known for its high barriers to entry, is expected to accelerate DUOLAC’s expansion in the region. It is a great opportunity to expand our distribution channels in Taiwan and the broader Chinese-speaking markets.

“It will also serve as an opportunity to increase awareness of DUOLAC as a representative K-probiotic brand and a leader in the global market. We hope to be able to gain an even greater customer base by communicating directly with Taiwanese consumers through Costco,” said Lee Jin-yong, head of Cell Biotech’s overseas business division.
The product launched in Taiwan is DUOLAC’s Kids Probiotics Chewable Tablet, whose taste and texture are designed like a snack specially to cater to children.

Taking into consideration the intestinal environment and strain growth rate of children, two types of lactic acid bacteria and two types of bifidobacteria were included in the formulation at a ratio of 70% and 30% respectively.

The company emphasised that the product uses only safe strains listed in the US Food and Drug Administration (FDA)’s GRAS (Generally Recognized as Safe) database.

In addition, the product is made using a patented dual-coating technology that ensures strong survival rate of lactic acid bacteria “until the end of the intestine”, and that allows for room temperature storage.

In February, Cell Biotech gained global attention by attaining the highest number of probiotic strains listed under the US FDA’s GRAS, which is reputable for its rigorous verification process.

To date, only about 70 probiotic strains have been listed under GRAS, 11 of which are Korean strains from Cell Biotech.

Top exporter for 11 consecutive years

Inaugurated in 2010, Cell Biotech is a pioneer in South Korea’s microbiome sector.

Through the DUOLAC brand, it offers scientifically formulated products, addressing the gut microbiome needs of consumers throughout the lifespan, from pregnant women to newborns, infants, children, and adults.

Currently, the firm exports locally produced probiotics to 55 countries worldwide.

According to statistics released by the Ministry of Food and Drug Safety (MFDS) on August 1, the total export value of domestic probiotics in 2023 reached KRW59.6bn (USD44.4m).

Among this, Cell Biotech accounted for KRW25.9bn (USD19.3m), maintaining the top spot as Korea’s biggest probiotic exporter for 11 consecutive years.

It is also the company’s highest export value since tracking began in 2013, further cementing its position as a market leader in the country.

“In a global probiotics market dominated by foreign companies like DuPont Danisco from the US and Chr. Hansen from Denmark, DUOLAC takes great pride in promoting the excellence of Korean probiotics.

“As a company that first achieved the localisation of probiotics in South Korea, we will continue to harness the strength of K-probiotics to secure leadership in the global probiotics market,” Jung Myung-jun, CEO of Cell Biotech, stated.

Notably, DUOLAC is said to have the second biggest market share in Denmark, where Cell Biotech has established a subsidiary to operate as a strategic base for expanding exports throughout Europe.