Downturn won’t deter wine-loving companies
By 2009-3-24 9:14:45
Love knows no bounds.
That’s what you might say about Korean conglomerates’ long-standing affair with the wine industry, which continues even now, as sales fluctuate.
LG, SK, Shinsegae, Lotte and other firms have plunged in, hiring experts, holding promotions and jostling for market share.
One of the devotees is Chung Yong-jin, vice chairman of Shinsegae Group, who founded the Shinsegae Wine Company in January.
At that time Chung happened to ask buyers at Shinsegae Department Store for a gift list of some French Bordeaux wines. That’s when he learned that SK Networks, the nation’s biggest trading company, had been importing several dozen fine wines dating from the 1930s to 1970s, a selection by SK Group Chairman Chey Tae-won, who would present them to his VIPs.
But Chung was startled about the high cost of the selected wines. The 1945 Chateau Lafite Rothschild was 6.44 million won ($4,570), the 1947 Chateau Margaux was 6.17 million won and the 1950 Chateau Mouton-Rothschild, 5.22 million won. It was hard to believe wine could be so expensive despite the high import tax. So Chung decided to import wine himself, simplifying distribution and making it less expensive.
Shinsegae’s advance into the local wine industry got the attention of many retailers and wine importers, who expect a shift in the local wine market.
“The local wine industry will expand overall,” says Micky Choi, a wine columnist and the CEO of Wine21.com, an online wine club.
Chairman Chey at SK is a famous wine lover, and his firm has been promoting the nation’s first wind fund.
LG Group is also active in the industry. Vice chairman and CEO of LG International Corporation Koo Bon-joon, a devotee of several different kinds of wine, established LG Twin Wine Company and is hoping to take advantage of synergies to raise sales.
LG Electronics’ share of the local market for wine cellars reached 40 percent last year, overtaking China-based competitor Haier. LG is planning to build an artificial cave wine cellar at its Gonjiam Resort in Gwangju, Gyeonggi, capable of storing up to 90,000 bottles.
The active participation and support of large corporations in the local wine industry is expected to rejuvenate sales, which have been falling in the economic slowdown. Over the Lunar New Year holiday Hyundai Department Store in southern Seoul saw lower than expected sales, prompting it to move up its annual wine sale.
“Korea’s wine industry isn’t that big yet, and it will take a long time for our investments to bear fruit in the future,” said wine columnist Choi. “The strong support of conglomerate owners will accelerate the market’s growth.”
That’s what you might say about Korean conglomerates’ long-standing affair with the wine industry, which continues even now, as sales fluctuate.
LG, SK, Shinsegae, Lotte and other firms have plunged in, hiring experts, holding promotions and jostling for market share.
One of the devotees is Chung Yong-jin, vice chairman of Shinsegae Group, who founded the Shinsegae Wine Company in January.
At that time Chung happened to ask buyers at Shinsegae Department Store for a gift list of some French Bordeaux wines. That’s when he learned that SK Networks, the nation’s biggest trading company, had been importing several dozen fine wines dating from the 1930s to 1970s, a selection by SK Group Chairman Chey Tae-won, who would present them to his VIPs.
But Chung was startled about the high cost of the selected wines. The 1945 Chateau Lafite Rothschild was 6.44 million won ($4,570), the 1947 Chateau Margaux was 6.17 million won and the 1950 Chateau Mouton-Rothschild, 5.22 million won. It was hard to believe wine could be so expensive despite the high import tax. So Chung decided to import wine himself, simplifying distribution and making it less expensive.
Shinsegae’s advance into the local wine industry got the attention of many retailers and wine importers, who expect a shift in the local wine market.
“The local wine industry will expand overall,” says Micky Choi, a wine columnist and the CEO of Wine21.com, an online wine club.
Chairman Chey at SK is a famous wine lover, and his firm has been promoting the nation’s first wind fund.
LG Group is also active in the industry. Vice chairman and CEO of LG International Corporation Koo Bon-joon, a devotee of several different kinds of wine, established LG Twin Wine Company and is hoping to take advantage of synergies to raise sales.
LG Electronics’ share of the local market for wine cellars reached 40 percent last year, overtaking China-based competitor Haier. LG is planning to build an artificial cave wine cellar at its Gonjiam Resort in Gwangju, Gyeonggi, capable of storing up to 90,000 bottles.
The active participation and support of large corporations in the local wine industry is expected to rejuvenate sales, which have been falling in the economic slowdown. Over the Lunar New Year holiday Hyundai Department Store in southern Seoul saw lower than expected sales, prompting it to move up its annual wine sale.
“Korea’s wine industry isn’t that big yet, and it will take a long time for our investments to bear fruit in the future,” said wine columnist Choi. “The strong support of conglomerate owners will accelerate the market’s growth.”
From joongangdaily.joins