WWW.EUROMONITOR.COM SAMPLE REPORT FOR ILLUSTRATION ON LY LIST OF CONTENTS AND TABLES Bottled Water in South Korea - Category analysis ......................................................................... 1 Headlines ........................................................................................................................................ 1 Trends ............................................................................................................................................. 1 Competitive Landscape .................................................................................................................. 2 Prospects ........................................................................................................................................ 2 Category Data ................................................................................................................................. 3 Institutional Bottled Water Sales ................................................................................................. 3 Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Sales of Bottled Water to Institutional Channel 2005-2010........................... 3 Off-trade Sales of Bottled Water: Volume 2005-2010 ................................... 3 Off-trade Sales of Bottled Water: Value 2005-2010 ...................................... 4 Off-trade Sales of Bottled Water: % Volume Growth 2005-2010 .................. 4 Off-trade Sales of Bottled Water: % Value Growth 2005-2010 ..................... 4 Company Shares of Bottled Water by Off-trade Volume 2006-2010 ............ 4 Brand Shares of Bottled Water by Off-trade Volume 2007-2010 .................. 5 Company Shares of Bottled Water by Off-trade Value 2006-2010 ............... 6 Brand Shares of Bottled Water by Off-trade Value 2007-2010 ..................... 6 Forecast Off-trade Sales of Bottled Water: Volume 2010-2015.................... 7 Forecast Off-trade Sales of Bottled Water: Value 2010-2015 ....................... 7 Forecast Off-trade Sales of Bottled Water: % Volume Growth 20102015 ............................................................................................................... 7 Forecast Off-trade Sales of Bottled Water: % Value Growth 20102015 ............................................................................................................... 8 Bottled Water in South Korea - Company Profiles ......................................................................... 9 Dong-a Otsuka Co Ltd in Soft Drinks (south Korea) ...................................................................... 9 Strategic Direction ....................................................................................................................... 9 Key Facts..................................................................................................................................... 9 Summary 1 Summary 2 Dong-A Otsuka Co Ltd: Key Facts................................................................. 9 Dong-A Otsuka Co Ltd: Operational Indicators ............................................. 9 Company Background................................................................................................................. 9 Production ................................................................................................................................. 10 Competitive Positioning............................................................................................................. 10 Summary 3 Dong-A Otsuka Co Ltd: Competitive Position 2010 .................................... 10 Haitai Beverage Co Ltd in Soft Drinks (south Korea) ................................................................... 11 Strategic Direction ..................................................................................................................... 11 Key Facts................................................................................................................................... 11 Summary 4 Summary 5 Haitai Beverage Co Ltd: Key Facts.............................................................. 11 Haitai Beverage Co Ltd: Operational Indicators .......................................... 11 Company Background............................................................................................................... 11 Production ................................................................................................................................. 12 Summary 6 Haitai Beverage Co Ltd: Production Statistics 2010.................................... 12 Competitive Positioning............................................................................................................. 12 Summary 7 Haitai Beverage Co Ltd: Competitive Position 2010 ................................... 13 Lotte Chilsung Beverage Co Ltd in Soft Drinks (south Korea) ..................................................... 13 Strategic Direction ..................................................................................................................... 13 © Euromonitor International WWW.EUROMONITOR.COM SAMPLE REPORT FOR ILLUSTRATION ON LY Key Facts................................................................................................................................... 13 Summary 8 Summary 9 Lotte Chilsung Beverage Co Ltd: Key Facts ............................................... 13 Lotte Chilsung Beverage Co Ltd: Operational Indicators ............................ 13 Company Background............................................................................................................... 14 Production ................................................................................................................................. 14 Summary 10 Lotte Chilsung Beverage Co Ltd: Production Statistics 2010 ..................... 14 Competitive Positioning............................................................................................................. 15 Summary 11 Lotte Chilsung Beverage Co Ltd: Competitive Position 2010 ..................... 15 Soft Drinks in South Korea - Industry Overview ........................................................................... 16 Executive Summary ...................................................................................................................... 16 Premiumisation Leads Healthy Growth .................................................................................... 16 Health and Wellness Continues To Attract Consumers ........................................................... 16 Two Leading Companies Maintain Positions ............................................................................ 16 “sparkling” Becomes Popular .................................................................................................... 16 Soft Drinks Will See Rapid Growth But Rapid Change ............................................................ 17 Key Trends and Developments .................................................................................................... 17 Premiumisation Continues To Drive Growth ............................................................................ 17 “sparkling” Well Received by South Korean Consumers ......................................................... 18 Leading Players Remain in Strong Positions ........................................................................... 19 Specialist Coffee Shops the Entry Channel for Premium Soft Drinks ...................................... 20 Marketing Strategies Through Smartphones Become Active .................................................. 21 Market Data ................................................................................................................................... 22 Table 14 Table 15 Table 16 Table 17 Table 18 Table 19 Table 20 Table 21 Table 22 Table 23 Table 24 Table 25 Table 26 Table 27 Table 28 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2005-2010 ....................................................................................... 22 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2005-2010 .......................................................................... 22 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 20052010 ............................................................................................................. 22 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2005-2010 ....................................................................................... 22 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: Volume 2010 ................................................................................................ 23 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: % Volume 2010 ................................................................................................ 23 Off-trade vs On-trade Sales of Soft Drinks by Category: Value 2010 ......... 23 Off-trade vs On-trade Sales of Soft Drinks by Category: % Value 2010 .... 24 Off-trade Sales of Soft Drinks (as sold) by Category: Volume 20052010 ............................................................................................................. 24 Off-trade Sales of Soft Drinks (as sold) by Category: % Volume Growth 2005-2010 ....................................................................................... 24 Off-trade Sales of Soft Drinks by Category: Value 2005-2010 ................... 24 Off-trade Sales of Soft Drinks by Category: % Value Growth 20052010 ............................................................................................................. 25 Company Shares of Off-trade Soft Drinks (as sold) by Volume 20062010 ............................................................................................................. 25 Brand Shares of Off-trade Soft Drinks (as sold) by Volume 2007-2010 ..... 26 Company Shares of Off-trade Soft Drinks (RTD) by Volume 20062010 ............................................................................................................. 27 © Euromonitor International WWW.EUROMONITOR.COM Table 29 Table 30 Table 31 Table 32 Table 33 Table 34 Table 35 Table 36 Table 37 Table 38 Table 39 Table 40 SAMPLE REPORT FOR ILLUSTRATION ON LY Brand Shares of Off-trade Soft Drinks (RTD) by Volume 2007-2010 ......... 28 Company Shares of Off-trade Soft Drinks by Value 2006-2010 ................. 29 Brand Shares of Off-trade Soft Drinks by Value 2007-2010 ....................... 29 Off-trade Sales of Soft Drinks by Category and Distribution Format: % Analysis 2010 ............................................................................................... 30 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2010-2015 ....................................................................... 31 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2010-2015 ...................................................... 32 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2010-2015 .......................................................................................... 32 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2010-2015 ............................................................................. 32 Forecast Off-trade Sales of Soft Drinks (as sold) by Category: Volume 2010-2015 .................................................................................................... 32 Forecast Off-trade Sales of Soft Drinks (as sold) by Category: % Volume Growth 2010-2015 .......................................................................... 33 Forecast Off-trade Sales of Soft Drinks by Category: Value 20102015 ............................................................................................................. 33 Forecast Off-trade Sales of Soft Drinks by Category: % Value Growth 2010-2015 .................................................................................................... 33 Appendix ....................................................................................................................................... 34 Fountain Sales in South Korea ................................................................................................. 34 Data ............................................................................................................................................... 34 Table 41 Table 42 Table 43 Table 44 Table 45 Table 46 Table 47 Table 48 Off-trade vs On-trade Fountain Sales of Soft Drinks: Volume 20052010 ............................................................................................................. 34 Off-trade vs On-trade Fountain Sales of Soft Drinks: % Volume Growth 2005-2010 ....................................................................................... 35 Off-trade vs On-trade Fountain Sales of Carbonates: Volume 20052010 ............................................................................................................. 35 Off-trade vs On-trade Fountain Sales of Carbonates: % Volume Growth 2005-2010 ....................................................................................... 35 Forecast Off-trade vs On-trade Fountain Sales of Soft Drinks: Volume 2010-2015 .................................................................................................... 36 Forecast Off-trade vs On-trade Fountain Sales of Soft Drinks: % Volume Growth 2010-2015 .......................................................................... 36 Forecast Off-trade vs On-trade Fountain Sales of Carbonates: Volume 2010-2015 ....................................................................................... 36 Forecast Off-trade vs On-trade Fountain Sales of Carbonates: % Volume Growth 2010-2015 .......................................................................... 37 Definitions...................................................................................................................................... 37 Summary 12 Research Sources ........................................................................................ 37 © Euromonitor International WWW.EUROMONITOR.COM SAMPLE REPORT FOR ILLUSTRATION ON LY BOTTLED WATER IN SOUTH KOREA CATEGORY ANALYSIS HEADLINES In 2010, bottled water sees 9% total volume growth The health and wellness trend continues to drive premium bottled water growth in South Korea Carbonated bottled water records the strongest total volume growth at 26% in 2010 Average unit prices increase by 1% in 2010 Nong Shim Co Ltd continues to lead bottled water sales in value terms with a 17% off-trade value share Bottled water is expected to grow at a CAGR of 6% in total volume terms over the forecast period TRENDS In 2010, bottled water continued to register strong growth, rising by 9% in total volume terms, mainly thanks to the good performance of still bottled water and carbonated bottled water. While more South Korean consumers are becoming aware of the importance of water consumption, premium bottled water such as deep sea water and imported bottled water, from various countries, including Evian (Groupe Danone) and Fiji by Fiji Water LLC performed well. Still bottled water recorded 9% growth in total volume terms. Still bottled water is considered an important aspect of the non-alcoholic drinks industry. Historically, the major factor driving growth was consumers’ distrust of tap water. During 2009, more South Korean consumers switched to bottled water from RTD tea which is cheaper in terms of unit price. With the economic recovery in 2010, more South Korean consumers have started to look for premium bottled water with health claims, for example those that include the minerals of specific regions. In September 2010, the US premium water brand, Fiji by Fiji Water LLC was introduced in South Korea and it has shown very healthy growth in 2010. The average unit price of bottled water as a whole rose by 1% in 2010, although the unit price of still bottled water increased by 3%. This is because premiumisation strongly impacted this category; the Evian brand increased by 62% in off-trade sales value in 2010, and the premium bottled water Fiji was introduced in 2010. As increasing numbers of South Korean consumers have been to Europe and the US, the premium still bottled water category continued to grow, supported by those consumers. This trend contributed to the rise in unit price. Carbonated bottled water showed strong growth in 2010. Lotte Chilsung Beverage Co Ltd relaunched Trevi, which targets female consumers, with a special bottle design in 2010. As the leading company in soft drinks, Lotte Chilsung entered carbonated bottled water with a positive marketing campaign for its Trevi brand; this category is expected to increase rapidly. Total volume sales of carbonated bottled water increased at a CAGR of 38% over the review period and they are expected to increase at a CAGR of 14% during the forecast period. When compared to European countries and neighbouring Japan, the carbonated bottled water category in South Korea still very small, thus it has the potential to grow more. © Euromonitor International SAMPLE REPORT FOR ILLUSTRATION ONLY WWW.EUROMONITOR.COM Functional bottled water continued to see a decline, falling by 8% in total volume terms due to the discontinuation of water containing amino acids. As water containing vitamins replaced amino acids water, vitamin water showed strong growth. Coca-Cola Korea Co introduced Glacéau VitaminWater in 2009, which stimulated some interest in the category. This brand registered 90% growth in 2010. COMPETITIVE LANDSCAPE In off-trade value terms, Nong Shim Co Ltd’s brand Cheju Samdasoo led the bottled water category with a share of 17% in 2010. Cheju Samdasoo is produced by the Jeju Provincial Development Corp in collaboration with Nong Shim and has maintained its leadership position as a result of its pure and clean positioning, using the clean image of Jeju Island during product promotion. In the context of the sweltering summer weather, the brand’s sales soared. In August 2010, its orders exceeded 2,600 tonnes per day, even though the average production capability was 1.8 million litres. In addition, Jeju Samdasoo was designated the official still bottled water for the 2010 G20 Seoul Summit. Content removed from sample PROSPECTS The bottled water category is expected to see sales rise at a CAGR of 6% in total volume terms over the forecast period. Premium water that includes minerals or is sourced from special locations, carbonated bottled water, and vitamin water will gain popularity among highincome consumers and young consumers who are sensitive changing trends. Young consumers have usually experienced foreign brands through travel or study abroad. As a result, they are familiar with imported premium bottled water brands, and some of them seek out certain brands in South Korea. This consumer base will support the expansion of premium imported brands in the domestic environment. © Euromonitor International WWW.EUROMONITOR.COM SAMPLE REPORT FOR ILLUSTRATION ONLY Content removed from sample CATEGORY DATA Institutional Bottled Water Sales Institutional bottled water sales showed growth of 2% during 2010. The penetration of bottled water in institutions such as hospitals, universities and organisations has increased as growing numbers of consumers consider tap water to be unsafe in South Korea. Most institutional bottled water is ordered through contractors that offer cooling systems, which are supplied at the time of the water delivery. However, the growth of institutional bottled water sales is slowing as this segment has reached a level of maturity and the barrier to entry is high as the contractors are limited and they have strong distribution networks based on wellestablished relationships with institutions. Table 1 Sales of Bottled Water to Institutional Channel 2005-2010 Million litres 2005 2006 Sales % growth Source: 2007 2008 2009 2010 2009 2010 Data removed from sample Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews Table 2 Off-trade Sales of Bottled Water: Volume 2005-2010 million litres 2005 Carbonated Bottled Water Flavoured Bottled Water Functional Bottled Water Still Bottled Water Bottled Water Source: 2006 2007 2008 Data removed from sample Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources © Euromonitor International WWW.EUROMONITOR.COM Table 3 SAMPLE REPORT FOR ILLUSTRATION ONLY Off-trade Sales of Bottled Water: Value 2005-2010 Won billion 2005 2006 Carbonated Bottled Water Flavoured Bottled Water Functional Bottled Water Still Bottled Water Bottled Water Source: 2007 2008 2009 2010 Data removed from sample Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 4 Off-trade Sales of Bottled Water: % Volume Growth 2005-2010 % volume growth 2009/10 Carbonated Bottled Water Flavoured Bottled Water Functional Bottled Water Still Bottled Water Bottled Water Source: Table 5 2005-10 CAGR 2005/10 TOTAL Data removed from sample Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Off-trade Sales of Bottled Water: % Value Growth 2005-2010 % current value growth 2009/10 Carbonated Bottled Water Flavoured Bottled Water Functional Bottled Water Still Bottled Water Bottled Water Source: Table 6 2005-10 CAGR 2005/10 TOTAL Data removed from sample Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Company Shares of Bottled Water by Off-trade Volume 2006-2010 % off-trade volume Company 2006 2007 Data removed from sample © Euromonitor International 2008 2009 2010 SAMPLE REPORT FOR ILLUSTRATION ONLY WWW.EUROMONITOR.COM Data removed from sample Total Source: Table 7 100.0 100.0 100.0 100.0 100.0 2008 2009 2010 100.0 100.0 100.0 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Brand Shares of Bottled Water by Off-trade Volume 2007-2010 % off-trade volume Brand Company 2007 Data removed from sample Total © Euromonitor International 100.0 SAMPLE REPORT FOR ILLUSTRATION ONLY WWW.EUROMONITOR.COM Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 8 Company Shares of Bottled Water by Off-trade Value 2006-2010 % off-trade value rsp Company 2006 2007 2008 2009 2010 100.0 100.0 100.0 2009 2010 Data removed from sample Total Source: Table 9 100.0 100.0 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Brand Shares of Bottled Water by Off-trade Value 2007-2010 % off-trade value rsp Brand Company 2007 Data removed from sample © Euromonitor International 2008 WWW.EUROMONITOR.COM SAMPLE REPORT FOR ILLUSTRATION ONLY Data removed from sample Total Source: 100.0 100.0 100.0 100.0 2014 2015 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 10 Forecast Off-trade Sales of Bottled Water: Volume 2010-2015 million litres 2010 2011 Carbonated Bottled Water Flavoured Bottled Water Functional Bottled Water Still Bottled Water Bottled Water Source: 2012 2013 Data removed from sample Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 11 Forecast Off-trade Sales of Bottled Water: Value 2010-2015 Won billion 2010 Carbonated Bottled Water Flavoured Bottled Water Functional Bottled Water Still Bottled Water Bottled Water Source: Table 12 2011 2012 2013 Data removed from sample Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Forecast Off-trade Sales of Bottled Water: % Volume Growth 2010-2015 © Euromonitor International 2014 2015 WWW.EUROMONITOR.COM SAMPLE REPORT FOR ILLUSTRATION ONLY % volume growth 2014/15 Carbonated Bottled Water Flavoured Bottled Water Functional Bottled Water Still Bottled Water Bottled Water Source: Table 13 2010-15 CAGR 2010/15 TOTAL Data removed from sample Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Forecast Off-trade Sales of Bottled Water: % Value Growth 2010-2015 % constant value growth 2010-15 CAGR Carbonated Bottled Water Flavoured Bottled Water Functional Bottled Water Still Bottled Water Bottled Water Source: Data removed from sample Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources © Euromonitor International 2010/15 TOTAL WWW.EUROMONITOR.COM SAMPLE REPORT FOR ILLUSTRATION ONLY SOFT DRINKS IN SOUTH KOREA INDUSTRY OVERVIEW EXECUTIVE SUMMARY Premiumisation Leads Healthy Growth In 2010, soft drinks experienced healthy growth, registering a 6% increase in off-trade value sales and a 5% increase in off-trade volume sales, thanks to a premiumisation trend, especially within bottled water, fruit/vegetable juice, carbonates and RTD coffee. Imported and premium brands of bottled water, carbonated bottled water and fruit/vegetable juice recorded healthy growth rates. In the case of fruit/vegetable juice, the category continued to see declining volume sales but imported premium juice expanded its presence in South Korea. New flavours of carbonates and renewed brands without sugar and preservatives were also popular launches. However, RTD tea and Asian speciality drinks showed volume declines as they fell out of fashion. Health and Wellness Continues To Attract Consumers With the growing health and wellness trend, healthy concepts remained popular among South Korean consumers. In particular, various vitamins have been used to target different consumer groups and manufacturers have highlighted the varied functions of different vitamins in their products, targeting sophisticated South Korean consumers. Vitamin B has been marketed for its anti-ageing properties. Vitamin C and collagen remained among the favourite ingredients for skin health. At the same time, manufacturers tried to strengthen “healthy” brands through advertising, the shape of packaging and using brand names to appeal to a sophisticated South Korean consumer base. Two Leading Companies Maintain Positions Lotte Chilsung Beverage Co Ltd and Coca-Cola Korea Co maintained the two leading positions in 2010, accounting for a 48% combined share in off-trade value terms. Lotte Chilsung remained in the leading position with 33% of off-trade value sales in 2010. The company strengthened its product portfolio, launching premium fruit/vegetable juice and sports drinks and renewing its well-known carbonates and flavoured bottled water lines, recording a positive growth rate although a decline in share. Coca-Cola Korea also introduced a smaller version of its Coca-Cola brand, Mini Coke, which proved popular among younger consumers. “sparkling” Becomes Popular In 2010, “sparkling” was a popular concept within soft drinks. South Koreans generally perceive sparkling drinks to be less healthy, a traditional perception associated with carbonates. However, carbonates have seen continued positive growth since 2008, despite the health and wellness trend. Growing numbers of South Korean consumers looking for refreshing carbonated options in soft drinks have become apparent. New product developments, presented as sparkling versions of fruit/vegetable juice and RTD tea, were introduced during 2010. Carbonated bottled water experienced strong growth in 2010. Furthermore, manufacturers offered health-positioned drinks in a carbonated format to attract consumers who are sensitive to their health needs. © Euromonitor International WWW.EUROMONITOR.COM SAMPLE REPORT FOR ILLUSTRATION ONLY Soft Drinks Will See Rapid Growth But Rapid Change Content removed from sample KEY TRENDS AND DEVELOPMENTS Premiumisation Continues To Drive Growth Content removed from sample Current Impact Content removed from sample Outlook Content removed from sample © Euromonitor International WWW.EUROMONITOR.COM SAMPLE REPORT FOR ILLUSTRATION ONLY Content removed from sample Future Impact Content removed from sample “sparkling” Well Received by South Korean Consumers Content removed from sample Current Impact Content removed from sample Outlook Content removed from sample © Euromonitor International WWW.EUROMONITOR.COM SAMPLE REPORT FOR ILLUSTRATION ONLY Content removed from sample Future Impact Content removed from sample Leading Players Remain in Strong Positions Content removed from sample Current Impact Content removed from sample Outlook Content removed from sample © Euromonitor International WWW.EUROMONITOR.COM SAMPLE REPORT FOR ILLUSTRATION ONLY Content removed from sample Future Impact Content removed from sample Specialist Coffee Shops the Entry Channel for Premium Soft Drinks Content removed from sample Current Impact Content removed from sample Outlook Content removed from sample © Euromonitor International WWW.EUROMONITOR.COM SAMPLE REPORT FOR ILLUSTRATION ONLY Future Impact Content removed from sample Marketing Strategies Through Smartphones Become Active Content removed from sample Current Impact Content removed from sample Outlook Content removed from sample Future Impact Content removed from sample © Euromonitor International WWW.EUROMONITOR.COM SAMPLE REPORT FOR ILLUSTRATION ONLY MARKET DATA Table 1 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2005-2010 million litres 2005 2006 OFF-trade ON-trade Total Source: Note: 2007 2008 2009 2010 Data removed from sample Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Excludes powder concentrates Table 2 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2005-2010 % volume growth 2009/10 OFF-trade ON-trade Total Source: Note: 2005-10 CAGR 2005/10 TOTAL Data removed from sample Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Excludes powder concentrates Table 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2005-2010 Won billion 2005 OFF-trade ON-trade Total Source: 2006 2007 2008 2009 2010 Data removed from sample Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 4 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 20052010 % current value growth 2009/10 OFF-trade ON-trade Total Source: 2005-10 CAGR Data removed from sample Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources © Euromonitor International 2005/10 TOTAL WWW.EUROMONITOR.COM Table 5 SAMPLE REPORT FOR ILLUSTRATION ONLY Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: Volume 2010 million litres Off-trade Bottled Water Carbonates Concentrates Fruit/Vegetable Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Source: Note: On-trade TOTAL Data removed from sample Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Excludes powder concentrates Table 6 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: % Volume 2010 % volume analysis Off-trade Bottled Water Carbonates Concentrates Fruit/Vegetable Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Source: Note: On-trade Total Data removed from sample Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Excludes powder concentrates Table 7 Off-trade vs On-trade Sales of Soft Drinks by Category: Value 2010 Won billion Off-trade Bottled Water Carbonates Concentrates Fruit/Vegetable Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Source: On-trade Data removed from sample Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources © Euromonitor International TOTAL WWW.EUROMONITOR.COM Table 8 SAMPLE REPORT FOR ILLUSTRATION ONLY Off-trade vs On-trade Sales of Soft Drinks by Category: % Value 2010 % value analysis Off-trade Bottled Water Carbonates Concentrates Fruit/Vegetable Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Source: On-trade Total Data removed from sample Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 9 Off-trade Sales of Soft Drinks (as sold) by Category: Volume 2005-2010 million litres 2005 Bottled Water Carbonates Concentrates Fruit/Vegetable Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Source: Note: 2006 2007 2008 2009 2010 Data removed from sample Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Excludes powder concentrates Table 10 Off-trade Sales of Soft Drinks (as sold) by Category: % Volume Growth 20052010 % volume growth 2009/10 Bottled Water Carbonates Concentrates Fruit/Vegetable Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Source: Note: Table 11 2005-10 CAGR Data removed from sample Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Excludes powder concentrates Off-trade Sales of Soft Drinks by Category: Value 2005-2010 © Euromonitor International 2005/10 TOTAL WWW.EUROMONITOR.COM SAMPLE REPORT FOR ILLUSTRATION ONLY Won billion 2005 2006 Bottled Water Carbonates Concentrates Fruit/Vegetable Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Source: Table 12 2007 2008 2009 2010 Data removed from sample Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Off-trade Sales of Soft Drinks by Category: % Value Growth 2005-2010 % current value growth 2009/10 Bottled Water Carbonates Concentrates Fruit/Vegetable Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Source: Table 13 2005-10 CAGR 2005/10 TOTAL Data removed from sample Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Company Shares of Off-trade Soft Drinks (as sold) by Volume 2006-2010 % off-trade volume Company 2006 2007 Data removed from sample © Euromonitor International 2008 2009 2010 SAMPLE REPORT FOR ILLUSTRATION ONLY WWW.EUROMONITOR.COM Data removed from sample Total Source: Note: Table 14 100.0 100.0 100.0 100.0 100.0 2009 2010 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Excludes powder concentrates Brand Shares of Off-trade Soft Drinks (as sold) by Volume 2007-2010 % off-trade volume Brand Company 2007 Data removed from sample © Euromonitor International 2008 WWW.EUROMONITOR.COM SAMPLE REPORT FOR ILLUSTRATION ONLY Data removed from sample Total Source: Note: Table 15 100.0 100.0 100.0 100.0 2008 2009 2010 11.3 100.0 12.5 100.0 1 .1 100.0 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Excludes powder concentrates Company Shares of Off-trade Soft Drinks (RTD) by Volume 2006-2010 % off-trade volume Company 2006 2007 Data removed from sample Others Total © Euromonitor International 11.5 100.0 11. 100.0 SAMPLE REPORT FOR ILLUSTRATION ONLY WWW.EUROMONITOR.COM Source: Table 16 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Brand Shares of Off-trade Soft Drinks (RTD) by Volume 2007-2010 % off-trade volume Brand Company 2007 Data removed from sample © Euromonitor International 2008 2009 2010 SAMPLE REPORT FOR ILLUSTRATION ONLY WWW.EUROMONITOR.COM Data removed from sample Total Source: Table 17 100.0 100.0 100.0 100.0 2008 2009 2010 100.0 100.0 100.0 2009 2010 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Company Shares of Off-trade Soft Drinks by Value 2006-2010 % off-trade value rsp Company 2006 2007 Data removed from sample Total Source: Table 18 100.0 100.0 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Brand Shares of Off-trade Soft Drinks by Value 2007-2010 % off-trade value rsp Brand Company 2007 Data removed from sample © Euromonitor International 2008 WWW.EUROMONITOR.COM SAMPLE REPORT FOR ILLUSTRATION ONLY Data removed from sample Others Total Source: Table 19 20.0 100.0 19.8 100.0 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Off-trade Sales of Soft Drinks by Category and Distribution Format: % Analysis 2010 © Euromonitor International 20.0 100.0 20. 100.0 WWW.EUROMONITOR.COM SAMPLE REPORT FOR ILLUSTRATION ONLY % off-trade BW Store-Based Retailing Grocery Retailers Supermarkets/Hypermarkets Discounters Small Grocery Retailers Convenience Stores Independent Small Grocers Forecourt Retailers Other Grocery Retailers Non-Grocery Retailers Non-Store Retailing Vending Homeshopping Internet Retailing Direct Selling Total Store-Based Retailing Grocery Retailers Supermarkets/Hypermarkets Discounters Small Grocery Retailers Convenience Stores Independent Small Grocers Forecourt Retailers Other Grocery Retailers Non-Grocery Retailers Non-Store Retailing Vending Homeshopping Internet Retailing Direct Selling Total Source: Key: Note: C Con F/VJ RTD C RTD T Data removed from sample 100.0 100.0 SED ASD 100.0 100.0 100.0 100.0 Data removed from sample 100.0 100.0 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources BW = bottled water; C = carbonates; Con = concentrates; F/VJ = fruit/vegetable juice; RTD C = RTD coffee; RTD T = RTD tea; SED = sports and energy drinks; ASD = Asian speciality drinks Excludes powder concentrates Table 20 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2010-2015 million litres 2010 OFF-trade ON-trade Total Source: Note: 2011 2012 2013 Data removed from sample Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Excludes powder concentrates © Euromonitor International 2014 2015 WWW.EUROMONITOR.COM Table 21 SAMPLE REPORT FOR ILLUSTRATION ONLY Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2010-2015 % volume growth 2014/15 OFF-trade ON-trade Total Source: Note: 2010-15 CAGR 2010/15 TOTAL Data removed from sample Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Excludes powder concentrates Table 22 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 20102015 Won billion 2010 2011 OFF-trade ON-trade Total Source: 2012 2013 2014 2015 Data removed from sample Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 23 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2010-2015 % current value growth 2014/15 2010/15 TOTAL Data removed from sample OFF-trade ON-trade Total Source: 2010-15 CAGR Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 24 Forecast Off-trade Sales of Soft Drinks (as sold) by Category: Volume 20102015 million litres 2010 Bottled Water Carbonates Concentrates Fruit/Vegetable Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Source: Note: 2011 2012 2013 Data removed from sample Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Excludes powder concentrates © Euromonitor International 2014 2015 WWW.EUROMONITOR.COM Table 25 SAMPLE REPORT FOR ILLUSTRATION ONLY Forecast Off-trade Sales of Soft Drinks (as sold) by Category: % Volume Growth 2010-2015 % volume growth 2014/15 Bottled Water Carbonates Concentrates Fruit/Vegetable Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Source: Note: 2010-15 CAGR 2010/15 TOTAL Data removed from sample Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Excludes powder concentrates Table 26 Forecast Off-trade Sales of Soft Drinks by Category: Value 2010-2015 Won billion 2010 Bottled Water Carbonates Concentrates Fruit/Vegetable Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Source: Table 27 2011 2012 2013 2014 2015 Data removed from sample Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Forecast Off-trade Sales of Soft Drinks by Category: % Value Growth 20102015 % constant value growth 2010-15 CAGR Bottled Water Carbonates Concentrates Fruit/Vegetable Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Source: Data removed from sample Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources © Euromonitor International 2010/15 TOTAL SAMPLE REPORT FOR ILLUSTRATION ONLY WWW.EUROMONITOR.COM APPENDIX Fountain Sales in South Korea Trends Fountain sales continued positive growth in on-trade volume terms while fountain on-trade volume sales through convenience stores declined during 2010. In South Korea, most fountain sales occurred in the foodservice channel, which accounted for a 97% share of total fountain volume sales in 2010. Fountain sales through convenience stores tend to be subject to seasonality, with demand being higher in summer. As such, few convenience stores offer fountain sales for soft drinks in South Korea. In addition, most convenience stores are limited in their selling space, making it increasingly difficult to site the fountains on the premises. Only a small number around school zones tend to offer fountain sales. Content removed from sample DATA Table 28 Off-trade vs On-trade Fountain Sales of Soft Drinks: Volume 2005-2010 million litres 2005 OFF-trade ON-trade Fountain ON-trade volume through c-store Fountain ON-trade volume through food store Total fountain ON-trade volume Total © Euromonitor International 2006 2007 2008 Data removed from sample 2009 2010 WWW.EUROMONITOR.COM Source: Note: SAMPLE REPORT FOR ILLUSTRATION ONLY Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Total fountain on-trade volume data included in on-trade Table 29 Off-trade vs On-trade Fountain Sales of Soft Drinks: % Volume Growth 20052010 % fountain volume growth 2009/10 OFF-trade ON-trade Fountain ON-trade volume through c-store Fountain ON-trade volume through food store Total fountain ON-trade volume Total Source: Note: 2005-10 CAGR 2005/10 TOTAL Data removed from sample Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Total fountain on-trade volume data included in on-trade Table 30 Off-trade vs On-trade Fountain Sales of Carbonates: Volume 2005-2010 million litres 2005 OFF-trade ON-trade Fountain ON-trade volume through c-store Fountain ON-trade volume through food store Total fountain ON-trade volume Total Source: Note: Table 31 2006 2007 2008 2009 2010 Data removed from sample Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Total fountain on-trade volume data included in on-trade Off-trade vs On-trade Fountain Sales of Carbonates: % Volume Growth 20052010 % fountain volume growth 2009/10 OFF-trade ON-trade Fountain ON-trade volume through c-store Fountain ON-trade volume through food store Total fountain ON-trade volume Total Source: Note: 2005-10 CAGR Data removed from sample Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Total fountain on-trade volume data included in on-trade © Euromonitor International 2005/10 TOTAL SAMPLE REPORT FOR ILLUSTRATION ONLY WWW.EUROMONITOR.COM Table 32 Forecast Off-trade vs On-trade Fountain Sales of Soft Drinks: Volume 20102015 million litres 2010 OFF-trade ON-trade Fountain ON-trade volume through c-store Fountain ON-trade volume through food store Total fountain ON-trade volume Total Source: Note: 2011 2012 2013 2014 2015 Data removed from sample , , , , , , Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Total fountain on-trade volume data included in on-trade Table 33 Forecast Off-trade vs On-trade Fountain Sales of Soft Drinks: % Volume Growth 2010-2015 % fountain volume growth 2014/15 OFF-trade ON-trade Fountain ON-trade volume through c-store Fountain ON-trade volume through food store Total fountain ON-trade volume Total Source: Note: 2010-15 CAGR 2010/15 TOTAL Data removed from sample Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Total fountain on-trade volume data included in on-trade Table 34 Forecast Off-trade vs On-trade Fountain Sales of Carbonates: Volume 20102015 million litres 2010 OFF-trade ON-trade Fountain ON-trade volume through c-store Fountain ON-trade volume through food store Total fountain ON-trade volume Total Source: Note: 2011 2012 2013 2015 2,586.1 2,612.6 Data removed from sample 2, 26.1 2, 88.2 2,523.8 2,556.8 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Total fountain on-trade volume data included in on-trade © Euromonitor International 2014