Hite Brewery :
Constantly
on the Move

Releases the newest Hite product with ' fresher taste'and changed label

Hite Brewery, which has reigned over the domestic beer market since 1994, does not rest on its laurels, but the company is incessantly out to keep on the move and adjust to market changes.
Yoon Jong-woong, president of Hite Brewery, recalled that no one imaged that the underdog Chosun Brewery, predecessor of Hite Brewery, would defeat its archrival Oriental Brewery in 1994 when the former overtaken the latter. "On the contrary, we could face a similar dismal if we are too complacent or arrogant. The only thing to stay where it is now (maintaining the No. 1 position) is to constantly strive to meet clients'changing tastes,'Yoon said.
Hite Brewery President Yoon has been around the beer-making industry for more than 30 years. He has climbed up the company's corporate ladder since his entry in 1975 and has finally become the president in 1999. He is one of the long-standing CEOs of the listed companies as Yoon, who enjoys profound confidence from Hite Brewery owner-cum Chairman Park Moon-deuk,
was reelected as the president for a 3-year tenure last month.
In his latest innovative move following his reelection as president, Hite Brewery President Yoon has unveiled the newest Hite product with a "fresher taste"and a little modified label. The Fresh Taste-Keeping (FTK) System, an advanced beer-making process designed to beef up freshness and keep optimal production conditions, was adopted to produce the renewal of Hite.
The release of the renewal Hite product comes after three years of research with the goal of prolonging a maximum of a fresh taste of Hite and Prime. An analysis of the 2003 and current Hite brands, commissioned to a foreign beer taste testing consultancy showed that the aged Hite beer category saw the general evaluation grade rising from four for the 2003 Hite brand to six for the current Hite brand.
Hite Brewery has changed the label of the Hite brand from the capitalized name Hite to a lowercased one in three years.
The beer brewery has also altered the catchphrase of the brand from "A Work Produced by Water"to "Open Up! Hite,"a move to adopt a new marketing strategy designed to appeal the sentiment of clients. The new catchphrase indicates the message that Hite is where families, friends and neighbors come together with an opened mindset."Hite Brewery President Yoon summed up the latest move: keeping aware of the clients. "Such international reendowed brands as Carlsberg, Budweiser and Heineken almost would not alter their designs. However, we are always ready to upgrade products to meet the tastes of Korean consumers -- greater tendency toward loving new things and more demanding palates.
Hite Brewery is launching a big sports marketing activity pitching for the latest renewal production and the revamped label to capitalize on a surge in beer consumption before and during the 2006 World Cup finals slated for June in Germany. The company is conducting a lottery in which 30,000 bottles of Hite beer, with each cap indicating a lucky winner of 1 don (3.7 grams) of gold,
have been and will be released before and during the World Cup period. The lottery will cost the beer maker 2 billion won.
HITE BREWERY IS ON AN EXPANSION MODE. The domestic beer leader last year acquired Jinro, the nation's biggest distilled liquor maker
FTC held its full-member session last July 20 and approved Hite Brewery Co.'s acquisition of Jinro Co., but attached four conditions to give the green-light for the 3.43 trillion won takeover, the largest takeover in Korean corporate history.
As for the hottest issue over whether beer can be substituted for soju or vice versa, the antitrust watchdog ruled that beer and soju are separate markets; not substituting for each other, the fair trade watchdog said.
FTC's approval heralds the birth of Korea's mega-alcohol beverage group comprising Hite, with a 58 percent share in the local beer market, and Jinro, with a 55.4 percent share in the distilled liquor market. In 2004, the two companies posted approximately 1.5 trillion won in aggregate sales and some 330 billion won in combined net income.
Hite Brewery takes the lead in provincial districts, except the Chungcheong area (46 percent share). The market share of the beer maker is 71 percent in the Jeolla area; 57 percent in the Gangwon area; and 81 percent in the Gyeongsang and Jeju districts. Take for instance the Gangwon area where Doosan's soju brand "Sansoju"enjoys a 54.1 percent, not Jinro's "Chamisul" While the soju market of the Gyeonsang area is dominated by three different local soju makers: local soju maker Kumbokju's brand "Chamsoju"commands a 94.2 percent share in North Gyeongsang Province; Muhak's brand "White"has a 80 percent share in South Gyeongsang Province; and Daesun's brand "Siwon"with an 86 percent portion.
The Hite-led consortium was selected as the preferred bidder on April 1, 2005 out of eight bidders competing for the race to acquire the debt-ridden yet lucrative distilled liquor maker. The Korean Teachers Credit Unit, the Military Aid Association, Korean Federation of Community Credit Cooperatives and a private equity fund of Korea Development Bank are participating in the Hite-led consortium.
SPIN-OFF OF BOTTLED WATER BUSINESS. Hite Brewery on February 3 put a public notice on the domestic bourse a plan designed to adopt a win-win strategy calling for spinning off the bottled water business from its mainstay business sector, beer-making and establishing a separate company by merging Hite's bottled water brand "Puriss"and Jinro's bottled water brand "Seoksu."The consolidation would make the new bottled water company take control of the domestic bottled water market with the highest market share.
For Hite Brewery, the spin-off would bring about benefits -- improved management efficiency by exclusively specializing in the beer-making business arena.
Currently, Hite Brewery maintains the No.1 position over its archrival Oriental Brewery. Figures released by Korea Alcohol and Liquor Association showed that Hite Brewery took a 58.4 percent market share with a 14-point margin over OB's 43 percent during the first nine months of last year. nw

Yoon Jong-woong, president of Hite Brewery

(left)Hite Brewery Head Office in Cheongdam-dong, southeastern Seoul.(Below) the new label of the Hite brand. (right)Hite Brewery plant in Hongcheon, Gangwon Province.