Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul><li>There has been a strong demand growth for carbonated water (sparkling water) in Korea. We expect the carbonated water market to jump 6x from 20bn won in 2013 to about 120bn won in 2016, representing 82% CAGR growth rate during this period. </li><li>The Trevi brand (Lotte Chilsung Beverage Company) is dominant carbonated water in Korea with nearly 62% market share.</li><li>The strong demand carbonated water has been driven by 1) increasing health conscious consumers that are avoiding products with sugar and high calories, especially among young women 2) increasing meat consumption in Korea and some consumers believe that carbonated water helps in digestion, 3) aggressive marketing and promotions</li><li>Taekyung Chem (006890 KS) is one of the beneficiaries of the strong demand for carbonated water in Korea. Taekyung Chem has a leading market share (30%) in the manufacturing of liquid carbon dioxide (used in sparking water, for example) in Korea. Liquid carbon dioxide represents the biggest revenue segment, at 40% of total sales in 1Q-3Q 2015.</li></ul>

There has been a strong demand growth for carbonated water (sparkling water) in Korea. We expect the carbonated water market to jump 6x from 20bn won in 2013 to about 120bn won in 2016, representing 82% CAGR growth rate during this period. The Trevi brand (Lotte Chilsung Beverage Company) is dominant carbonated water in Korea with nearly 62% market share.The strong demand carbonated water has been driven by 1) increasing health conscious consumers that are avoiding products with sugar and high calories, especially among young women 2) increasing meat consumption in Korea and some consumers believe that carbonated water helps in digestion, 3) aggressive marketing and promotionsTaekyung Chem (006890 KS) is one of the beneficiaries of the strong demand for carbonated water in Korea. Taekyung Chem has a leading market share (30%) in the manufacturing of liquid carbon dioxide (used in sparking water, for example) in Korea. Liquid carbon dioxide represents the biggest revenue segment, at 40% of total sales in 1Q-3Q 2015.

Strong Growth of Sparkling Water in Korea

Thailand has beautiful beaches, delicious food, and TIPCO juice that is making strong inroads to the Korean juice beverage market. Our store checks reveal that TIPCO is gaining momentum in Korea, for its juices. TIPCO juices first started to appear in some hypermarkets a few years ago in Korea. Starting about 6-12 months ago, we started to notice that the shelf spaces of TIPCO were getting bigger with better locations in major hypermarkets such as E-Mart and Homeplus. In addition, TIPCO juices…

Thailand has beautiful beaches, delicious food, and TIPCO juice that is making strong inroads to the Korean juice beverage market. Our store checks reveal that TIPCO is gaining momentum in Korea, for its juices. TIPCO juices first started to appear in some hypermarkets a few years ago in Korea. Starting about 6-12 months ago, we started to notice that the shelf spaces of TIPCO were getting bigger with better locations in major hypermarkets such as E-Mart and Homeplus. In addition, TIPCO juices…

South Korea

Lotte Chilsung Beverage Co., Ltd. manufactures alcoholic and non-alcoholic beverages such as carbonic acid drinks, fruit juices, soybean drinks, teas, and traditional health beverages.

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Lotte Chilsung Beverage Co (005300 KS)

Strong Growth of Sparkling Water in Korea

There has been a strong demand growth for carbonated water (sparkling water) in Korea. We expect the carbonated water market to jump 6x from 20bn...

Douglas Kim

Storechecks of TIPCO Juice in Seoul

Thailand has beautiful beaches, delicious food, and TIPCO juice that is making strong inroads to the Korean juice beverage market. Our store checks...

Douglas Kim

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