[SBSCNBC ‘Ever-changing Public Economy’] 

The Secret of the Popularity of the Native “Cho Jung Soda Water,” Surpassing Perrier in Sales

■ Ever-Changing Public Economy

Many people worry about the sugar content in cola or carbonated soda. Recently, carbonated water has been gaining a lot of popularity, especially among women in their 20’s and 30’s who are concerned with their health.

The market scale is currently not particularly large, at only 20 billion won, yet with already 30 different varieties released to the public, it seems that the future is bright for this market.

We have distribution industry reporter Han Seung Lee here with us over the telephone to discuss this preferred product and the secret of its popularity.

Reporter Han Seung Lee, it seems that the number of consumers of carbonated water has increased quite a lot recently. Could you tell us about how much the market has grown?

Yes, the market for carbonated water has increased by 10 billion won in just the last three years.

As the number of consumers riding the trend of health food and products increased, we have seen the market’s growth accelerate to 13 billion won in 2012, which then increased sharply to about 20 billion won by the end of last year.

We project the market will expand from 23 billion to 250 billion won within this year.

Reporter Lee, recently a lot of imported carbonated water products are being sold at coffee shops. Is there one product that is taking over the domestic market?

Many people assume that it would be the French import Perrier Mineral Water, but the number one bestselling carbonated water in Korea is actually ‘Cho Jung’ Carbonated Water, manufactured by Ilhwa.
According to the market research institution A.C. Nielsen, Cho Jung Carbonated Water holds a market share of 42%, with Perrier in 2^nd place at 37% and Lotte Chilsung Beverage Trevi in 3^rd place at 13%.

It must be difficult for a domestic brand to win the number one spot against a global enterprise.

What is the secret to its popularity?

The biggest factor is the competitive price.

Cho Jung Carbonated Water is currently being sold at supermarkets at about 1,000 won per 500 ml plastic bottle. On the other hand, 330 ml bottles of Perrier are being sold for 500 won more.

So as you can see, a smaller bottle is being sold at a higher price.

The second factor is quality.

Cho Jung makes their products at what is considered to be one of the three best catchment basins for mineral water in the world, at Chojeong-ri, Cheongwon-gun, Chungbuk.

So, the water produced there is considered to be some of the best tasting water in the world.

Ilhwa released their product more than twenty years ago, and has been expanding their market ever since. It is now impossible to ignore the effect that Ilhwa has had on market acquisition.

How is the market for other brands?

It seems that, with the market having been divided between the domestic brand Cho Jun Mineral Water and Perrier, Perrier is solidifying its image as an elite, ‘expensive carbonated water’ brand.
Perrier is currently being sold at supermarkets at 1,500 won for 330 ml, and at an average of 3,000 won at coffee shops.
The brand is currently in 2^nd place in the domestic market, as it is quite popular with young working women in their 20’s and 30’s.
Trevi, manufactured by Lotte Chilsung Beverages, is contending for a higher ranking in the market through more reasonable pricing.
Trevi is currently being sold at supermarkets at 800 to 900 won per 355 ml can.
Lotte Chilsung Beverages is planning to establish itself in the market as both a familiar and inexpensive brand.
However, Trevi cannot get a lead on Cho Jung Mineral Water in terms of reasonable price.
Therefore, Lotte Chilsung Beverages is developing new products with its subsidiary company Angel-In-Us, such as combinations of espresso with carbonated water. It plans to use such tactics to move forward in the market.

I hear that there are also people who are making their rice with carbonated water, or using it to make radish water and water kimchi, in order to give it a little bit of a spicy kick.

Competition between enterprises is fiercer than ever, as the market for carbonated water expands with the health food craze.

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