FAS/Seoul Monitoring of Media Reporting on Agricultural Issues

Today's Date: Friday,  January 21,  2022

For Coverage: January 17 ~ 21, 2022

 

More People are Consuming Distilled Soju 

https://www.hankyung.com/economy/article/2022012032871

Summary:  According to the Tax Statistics Information Service (TASIS), domestic alcoholic beverage shipments totaled 3.21 million kiloliters in 2020, down 4.8 percent from the year before.  Prolonged social distancing and changes in drinking culture has led to a decrease in overall consumption of alcoholic drinks.  However, consumption of distilled soju in Korea is on a rise.  Domestic distilled soju shipments increased by 12.5 percent in 2020 (19.29 million kl) from 2019.  Shipments in 2020 were double their level in 2015.  Distilled soju retains the flavor of main ingredients, unlike diluted soju which is a mixture of water, alcohol and sweeteners.  Despite its relatively high price, more people are consuming distilled soju since they are looking for drinks to enjoy the taste rather than just get drunk.  Hwayo and Hite Jinro, two leading domestic distilled soju companies, are experiencing exponential growth in sales.

 

SPC Samlip Achieved Record-High Performance in 2021

https://news.naver.com/main/read.naver?mode=LS2D&mid=shm&sid1=101&sid2=310&oid=417&aid=0000777699

Summary:  SPC Samlip recorded sales of 2.95 trillion won ($2.47 billion) and operating profits of 65.8 billion won ($55 million) last year.  Balanced growth of the two major businesses of Samlip (Bakeries and Food business) positively contributed to the overall performance.  Both sales (up 15.9 percent) and operating profit (up 28.6 percent) increased in 2021 compared to the year before.  Online business sales also went up 133 percent from 2020, along with the expansion of online retail platform services.  Samlip expects to achieve sales of 4 trillion won and operating profits of 110 billion won in 2024.  Hwang Jong Hyeon, CEO of SPC Samlip said they will achieve their goals set for 2024 by reflecting the retail industry environment and consumer trends.  Accordingly, the company will strengthen their online businesses and boost their food business by expanding HMR products.

 

Hite Jinro Strengthens Its Eco Friendly Business

https://www.donga.com/news/article/all/20220120/111337401/1

Summary:  Hite Jinro partners with Cueclyp, a leading upcycling brand in Korea.  Through the business agreement with Cueclyp, Hite Jinro is planning to fulfill their social and environmental responsibilities throughout the entire process from production to consumption.  Materials used in processing will be replaced with ones that can be up-cycled.  Hite Jinro has been carrying out eco-friendly business activities such as obtaining Environmental Product Declarations (EPD) for major products such as Terra and Jinro and conducting ‘Clean Recycling’ campaigns.

 

Agricultural Production Totaled 54.42 Trillion Won in 2021 … Forecast to Drop 3.2 Percent This Year

http://www.foodnews.co.kr/news/articleView.html?idxno=95458

Summary:  According to Korea Rural Economic Institute’s (KREI) ‘Agriculture Outlook 2022’, agricultural production totaled 54.42 trillion won last year, up 7.8% from 2020.  However, this year’s agricultural production will drop by 3.2 % to 52.29 trillion won.  The production value of the cultivation industry will increase 2.5% compared to 2021 due to a recovery in productivity and a price decline of major fruit items such as apples and grapes.  There will be residual effects from last year’s increase in vegetable production.  The production value of the livestock industry will decrease by 6.6 % compared to 2021.  Due to changes in food consumption patterns, consumption of imported fruit and meat will increase 1.3% and 0.7% respectively on average from 2021 to 2031.  Meanwhile, consumption of grains (down 0.6%) and vegetables (down 0.3%) are expected to drop.  Agricultural exports this year will increase by 11.6 % from last year, but imports will decrease by 4.7%.  As a result, the trade deficit is expected to decrease 9.9% from 2021 to $2.32 billion dollars.

 

The Market for Sauces Grows Sharply

https://news.naver.com/main/read.naver?mode=LS2D&mid=shm&sid1=101&sid2=310&oid=016&aid=0001939600

Summary:  Consumer demand for sauces is on a rise along with the trend of eating at home.  “Modisumers,” consumers who enjoy modifying products to match their tastes, apply sauces in many different recipes at home.  According to Euromonitor, the sauce market reached 2.18 trillion won last year, up from 1.74 trillion won in 2019.  Sauce sales are expected to grow even more.  Online grocer Market Kurly reported that sauce sales on their platform increased 62 percent in 2021 compared to the year before.

 

Users of Hello Nature Have Multiplied

https://news.naver.com/main/read.naver?mode=LS2D&mid=shm&sid1=101&sid2=310&oid=011&aid=0004009817

Summary:  Registered Hello Nature users (online food life shop) increased 8-fold in the two and a half years since its launch.  All early morning deliveries are carried out with a reusable package called ‘The Green Box’.  Customers of Hello Nature are highly satisfied with the “Green Delivery” service in terms of eco-friendliness, convenience and freshness.  Accordingly, early morning delivery orders have increased 15 percent during the last 3 months.  Hello Nature reduced 800 tons of disposable waste such as plastic bags, paper boxes and tape.  Jeong Hoo Oh, CEO of Hello Nature said they will keep on with services that can positively contribute to both customer satisfaction and environmental protection.

 

Korean Instant Meal Market Soars 145% Over 4 Years

http://www.foodnews.co.kr/news/articleView.html?idxno=95444

Summary:  The market for instant meals has soared over recent years along with the increased number of convenience stores, improvement in quality, the trend of eating at home, and widespread use of air-fryers.  According to the Ministry of Agriculture, Food and Rural Affairs (MAFRA) and Korea Agro-Fisheries & Food Trade Corporation, shipments of instant meal products in Korea reached 2.01 trillion won in 2020, up 145.3 percent from 2016.  Exports of Korean instant meal products in 2020 totaled 34.92 million dollars, up 323.1 percent compared to 2016.  Korean food is gaining traction internationally as more foreigners get exposed to Korean food and culture through online videos.

 

Homeplus Offers Value-Conscious Lunar New Year Gifts

https://news.naver.com/main/read.naver?mode=LS2D&mid=shm&sid1=101&sid2=310&oid=421&aid=0005850642

Summary:  Homeplus presented various kinds of gift sets for the upcoming Lunar New Year holiday targeting social conscious consumers.  Homeplus launched ‘Dongwon Healthy ESG gift set #53’ which consists of lower sodium and fat hams and tunas approved by the Marine Stewardship Council.  Unnecessary plastic containers were also replaced with ones made of reusable paper.

 

E-commerce Platforms are Going Public

https://news.naver.com/main/read.naver?mode=LS2D&mid=shm&sid1=101&sid2=310&oid=031&aid=0000648631

Summary:  E-commerce platforms, which have grown substantially after the outbreak of COVID 19, are planning to raise additional funds by going public.  According to an industry insider, early-morning delivery service platforms are mostly seeing a financial deficit.  These businesses need to raise funds through initial public offerings (IPO) to survive.  E-commerce grocer Market Kurly has moved ahead with plans for an IPO and selected lead managers.  If plans are carried out on time, Kurly is expected to be the first e-commerce company to go public on the Korean market.  SSG and Oasis Market are also moving ahead with plans for IPOs which will be finalized this year.

 

Traditional Sauces are on a Price Rise

https://news.naver.com/main/read.naver?mode=LS2D&mid=shm&sid1=101&sid2=310&oid=119&aid=0002567677

Summary:  Prices of Korean traditional sauces such as red pepper paste and soybean paste will increase on the back of price increases in soybeans, rice and pepper.  CJ Cheil Jedang and Daesang will reportedly increase the price of sauces starting next month.  CJ is expecting a price rise of 9% on average.  Daesang will increase sauce prices by 11.3% on average.  A company insider explained that the price increase was inevitable due to the ongoing inflation in key ingredient prices.