RSSCostco cherries
The Washington-based company is big in South Korea, too, and its cherry sales there have soaredYakima Herald-Republic
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SEOUL -- South Koreans may dislike U.S. beef, but when it comes to Bing, Chelan and Sweetheart cherries in bulk quantities, that's a different story.
Costco has seen great success since opening in South Korea in 1994. The Yangjae Costco in Seoul ranks No. 1 in sales out of more than 500 locations worldwide.
So it's not much of a surprise that Costco Korea is one of the top five importers of Northwest cherries in South Korea.
"He's probably the pioneer of selling cherries," said Keith Hu, international marketing director for the Northwest Cherry Growers.
The "he" Hu is referring to is Costco Korea buyer Yoo Sun-goo.
Five years ago, Yoo went to an annual Costco meeting in Kirkland, Wash., where he was introduced to fresh cherries.
"I thought if I brought the fruit to Korea, I would be successful," he said.
He was right. In the first year, the one pallet he imported every week sold in less than a day.
In 2007, Costco Korea made $4 million in U.S. dollars selling fresh cherries -- about $3 million of it from the Northwest crop. This year, Yoo plans to import about 60 pallets of cherries a week.
The reason for the strong demand is simple -- Costco sells a 3-pound package of cherries for about 16,000 won, less than half what it costs at other retailers.
"It made the product more accessible," Hu said.
Cherries are one of several products that are purchased centrally at Costco's headquarters in Issaquah, Wash. The goal is to pack it in Issaquah, ship it, and have it received in South Korea without touching the cherries again, said Sharlene Taylor, a Costco buyer.
Taylor said she's amazed at the rapid penetration of cherries in Korea in such a short time. She said that Korea has already passed several countries in sales.
And Yoo expects demand to only increase as Costco continues expanding in Korea. A store in Busan, off the southeastern coast of Korea, is expected to open in June 2009, and three more are planned for 2010.
