Oriental Brewery, Korea’s No. 2 beer maker, topped its bigger rival Hite-Jinro for the first time in 15 years as its market share shot up last year, thanks to the growing popularity of its new products.
Industry data showed on Wednesday that OB’s share in the local beer market by shipment volume topped 50.2 percent in the first 10 months of 2011, surpassing Hite-Jinro by a hair’s breadth ― 0.4 percent.
Their race had been nip-and-tuck throughout last year as OB accelerated to taper the once double-digit gap with Hite-Jinro with new models of its flagship Cass brand.
In the first quarter of 2011, OB beefed up its stake to 46.6 percent while Hite-Jinro maintained the lead with 53.4 percent, figures by the Korea Alcohol & Liquor Industry Association showed.
Some industry watchers saw the closing gap as a temporary blip in the market, but the figure became even smaller later that year.
OB has been enjoying a recent surge in demand for Cass Light, Cass Red and Cass Red as well as Golden Larger, which it claimed contains 100 percent German hops and golden malt.
But now the victory is poised to put a strain on the 59-year-old brewery, which has been seeking a 7.5 percent price hike since November but forced to withdraw the plan amid inflation jitters.
“The news will make things even more complicated for OB, knowing that the National Tax Service would heap further pressure if it proves to be the biggest beer producer,” an industry official said, declining to be named.
Hite-Jinro, meanwhile, is gearing up for a comeback as it wraps up a prolonged merger sealed in 2005.
The two drinks giants revamped growth strategies, unveiled a new corporate identity and incorporated their marketing network last year.
The company aims to boost exports to $200 million by 2015, targeting China, Japan and Southeast Asia. Its outbound shipment exceeded $107 million in the first nine months of 2011, up more than 30 percent year-on-year.
“We been much too complacent about our position over the last five years,” Lee Nam-su, president of Hite-Jinro, told reporters last year. Jinro is Korea’s largest soju distiller.
By Shin Hyon-hee (
heeshin@heraldcorp.com)
