How Taiwanese egg rolls are flying off shelves in Costcos across America
Source:Ming-Tang Huang
Taiwan’s Serena Egg Rolls, which have been popular for nearly half a century, became available in Costcos across the U.S. in 2022. Its unprecedented success overseas has spurred the manufacturer to expand production for the first time in 37 years.
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How Taiwanese egg rolls are flying off shelves in Costcos across America
By Chen Kang KangFrom CommonWealth Magazine (vol. 766 )
Established in 1977, Serena Foods is a Taiwanese company that learned the trade of frying up delicious handmade egg rolls from older Hong Kong businesses. Now, the student has become the master. Among other things, Serena was the first to introduce automatic egg roll machines to the production line.
In March 2022, Serena Egg Rolls appeared on the shelves in Costcos across the United States. From California and Texas to Maine, New York, and Pennsylvania on the eastern seaboard, the familiar metal boxes filled with delicious egg rolls can be seen everywhere.
“We did not expect we would be so successful,” says Serena CEO Wang Hai-hu (王海琥). Last year, they sold 20 shipping containers’ worth (about 100,000 boxes) of egg rolls to the U.S. It became Serena’s biggest international market.
The overseas success was unprecedented and unexpected, and has impelled Serena to invest NT$1.2 billion to buy new land and facilities so it could expand production for the first time in 37 years. The plan is to double production capacity in two years, and increase it five-fold within a decade. This will allow Serena to dominate both the domestic and foreign markets.
A warm welcome for the taste of Taiwan
Since last September, the 48 automatic egg roll machines in Serena’s Nantou plant have been working around the clock. They can churn out a roll every twenty seconds or so.
Wang explains that every year, the machines need to begin producing a surplus of rolls four months ahead of the Lunar New Year. This year, because of the demand across the Pacific, the factory began working overtime a month earlier than usual.
Egg rolls are Serena’s hero product. Five years ago, a trade company approached Serena about selling them abroad. They began with Chinese supermarkets in America, and then gradually entered Korean, Malaysian, Filipino, and Vietnamese markets.
“We believe these are the ‘comfort food’ of ethnic Chinese expats,” says Wang. Having worked in the U.S. himself, he understands how homesick Taiwanese people who are living abroad might feel as the ongoing pandemic prevents them from coming home.
In 2020, Costco’s Taiwan office recommended a slew of local products to headquarters. This paved the way for Serena’s egg rolls to enter hypermarkets across the States.
SERENA egg rolls was launched the last March 2022. (Source: SERENA)
At the start, Wang fretted there would be an entry barrier to the otherwise roll-less American market. Imagine his pleasant surprise when the free samples in the Californian Costcos turned out to be a big hit. A manager even said it was one of the three tastiest treats he’d ever tasted.
Even more astonishing, sales in Costcos did not diminish sales in the other retailers, as Serena had feared. Chinese supermarkets wound up selling 20% more egg rolls than in the previous year.
American observers pointed out that Asian Americans used to be the main consumers of Serena egg rolls. After making its debut in Costco, non-Asian buyers also showed up in droves.
Unlike in the Taiwanese market, American customers usually buy the egg rolls for their own consumption, not as a present for someone else. That meant American taste buds had been won over.
Creative marketing wooes the youth market
At its core, an egg roll is eggs, oil, flour, and sugar; it’s not exactly rocket science.
However, Serena has kept the same recipe and manufacturing process for the last 45 years, and its business is still growing. It is the champion of the domestic market with a market share of 40%.
The secret to its success is the company’s willingness to keep with the times. The decades-old product kept getting makeovers so it could woo each new generation of consumers.
SERENA launches a figurines egg rolls gift package of rabbit-year. (Source: SERENA)
For example, beginning in 2021, Serena worked with Japanese sculptor Asakuma Toshio to sell his toy figures along with the egg rolls. The successful partnership is entering its third year.
NT$1.2 bilion investment aimed at Asian, North American markets
Serena has put a lot of money into expanding production. The motive is to build upon its international success. Aside from the American market, Serena has also set its sights on Canada, New Zealand, and Australia. It also sees a lot of potential in the Korean, Malaysian, Filipino, and Vietnamese markets.
Last year, Serena’s annual revenue was around NT$600 million. Foreign markets brought in a big chunk of the dough.
Wang says overseas markets made up 10% of all egg roll sales in 2022. Half of it came from the U.S. market. And the number is expected to keep going up.
After 45 years of dominating the Taiwanese market, Serena has made it big overseas. Taiwan’s favorite egg roll will soon be found on more tables around the world.
SERENA decided to expand plants to meet the strong demand overseas. (Source: Ming-Tang Huang)
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Translated by Jack Chou
Edited by TC Lin
Uploaded by Ian Huang