South Korea: Hite Jinro expecting sales momentum in H2 after record-breaking sales success this summer
Hite Jinro is expecting a sales momentum in the second half as its new lager Terra continues to fly off the shelves after posting a record-breaking sales success this summer, the Korea Times reported on October 6 citing industry officials.
According to Hite Jinro, it sold 202 million bottles (330 milliliters) of Terra as of Aug. 27, surpassing the 200 million bottle mark just 160 days after its launch. This means 14.6 bottles of Terra were sold in a second, the company said.
Terra surpassed the 100 million bottle mark 101 days after its launch, but took only 59 days to add another 100 million bottles, meaning the pace has picked up speed, the brewery said.
Terra's fast growth has contributed to the overall growth of the domestic beer market. The country's bottled beer sales from July to August grew 96 percent from a year earlier.
The lager's sales success resulted in a rebound of Hite Jinro's second quarter earnings.
According to its earnings report, the company logged 186.2 billion won ($155.56 million) in domestic beer sales in the second quarter of this year, up 5.7 percent or 10 billion won from 176.2 billion won a year earlier.
Hite Jinro said it has been holding various promotion events to maintain Terra's sales momentum.
On Sept. 4, Michelin Guide Seoul named Terra as its official partner to jointly promote culinary culture in Korea.
"Terra's brand image and philosophy is in line with Michelin Guide's direction of promoting culinary culture," an official at Michelin Guide Seoul said.
Following the partnership, Hite Jinro will participate in the Michelin Guide Gourmet Fair 2019 hosted by Michelin Guide Seoul later this month.
In August, Hite Jinro sponsored EDC Korea 2019 music festival and Jeonju Gamaek beer festival in Jeonju, North Jeolla Province, and held various events to promote Terra. At the beer festival on Aug. 8, Hite Jinro sold 80,000 bottles of Terra produced on the same day.
"As Terra enjoys an unexpected popularity, we saw a turnaround in our beer sales in the second quarter," a Hite Jinro official said. "If this momentum continues, handsome numbers are expected in the second half earnings."
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