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Cider sales beating cola sales






December 09, 2004 ¤Ñ Clear, caffeine-free beverages such as 7-Up are challenging colas in the soft drink market.
Sales of colas in Korea have gone down during the past few years: From a 630 billion won market ($59.5 million) in 2001, to 610 billion won in 2002, 490 billion in 2003, and 410 billion this year as of October.
Cola sales from January to October this year are 2 percent lower than during the same period last year.
"This summer was the hottest summer in many years, yet the cola market was not very lively," said Sung Ki-seung, an official at Lotte Chilsung. Lotte produces a variety of soft drinks and distributes brands like Pepsi.
"Surveys showed that people are more conscious of their health and well-being, which led them to choose cider instead of cola since it doesn't contain caffeine."
In Korea, clear soft drinks flavored with lemon or lime are called "cider." Beverages such as 7-Up and Sprite fall into this category.
The more popular Korean brands include Chilsung Cider, which occupies about 75 percent of the cider market, KIN Cider and Chukbae Cider.
The overall cider market rose on average about 10 percent this year as of October, amounting to 350 billion won this year; in 2001, it was 290 billion won. Chilsung Cider achieved 7 percent growth on a yearly basis.
The decline in cola drinking can also be seen at fast food venues.
Sales of cola at fast food chain Lotteria from January to November totaled 14 million of 16-ounce cups, about 22.3 percent lower than the same period last year. Burger King and KFC also reported lower cola sales, their declines ranging from 7 to 13 percent.
Industry analysts, however, are saying that the real competition is not between cola and cider, but between Coca Cola Korea and Lotte Chilsung. Coca Cola Korea has a 70 percent hold of the cola market, while Lotte Chilsung has three quarters of the cider market.
The two soft drink rivals are currently involved in a lawsuit on the can design of their products. Lotte's Chilsung Cider and Coca Cola Korea's KIN Cider are similar in pattern and color ¡ª both have a green diagonal strip against a white background with white lettering.


by Wohn Dong-hee