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Fri, September 15, 2006 : Last updated 9:28 am (Thai local time)



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Home > Business > Korea laps up Zenya green tea





UNCORKING BEVERAGE EXPORTS
Korea laps up Zenya green tea

Distribution deal signed for second foreign market after Cambodia

After launching its Zenya ready-to-drink green tea in the local market almost a year ago, TAC Beverage Co Ltd is now aiming to make the brand internationally known.

The company in June signed an exclusive distribution contract with Jumax Corp for South Korea, which becomes the second foreign market for the brand.

TAC appointed a local distributor and gave full marketing support in Cambodia in March.

The company has also appointed a local agent in India, and has received its first order for that market.

TAC is testing the Zenya product in many other countries, including the United Kingdom, Australia and Singapore.

"Under the annual contract, Zenya green tea is being distributed through more than 6,000 convenience stores in Korea, including 2,000 GS25 convenience stores of the LG Group," said Chatchawe Vatanasuk, managing director of TAC Beverage, adding that Jumax Corp was the market leader in South Korea for imported beverages.

Zenya is targeting teenagers in Korea as its core drinkers.

"Like Thailand, green tea is now quite popular among teenagers in Korea for being refreshing and healthy. Our internal survey shows that the Korean market is broad, with high growth potential," said Chatchawe.

"We are proud to find a threshold in Korea, seen as a country with a long history of tea culture. There are currently more than 20 ready-to-drink tea brands in Korea and Zenya has got a good response from Korean consumers," said Chatchawe.

He said Zenya sold in Korea came in three flavours: pomegranate, which the company says combines pomegranate juice with high antioxidants; super lemon; and original.

"Zenya's strong brand position and flavours have won Thai and Korean teenagers' hearts. The recent sales report showed that about 500,000 bottles had been sold and Zenya is the first Asian brand to hit the Korean market," said Chatchawe.

"Drinking tea is a part of Korean culture. More than Bt10 million will be spent over the next 12 months to support the launch of Zenya green tea in Korea," he said, adding that Zenya would be expanded to other retail channels, including supermarkets and hypermarkets.

"We have set a target to increase our export sales by up to 40 per cent next year, in a move to make Zenya an international green-tea brand," said Chatchawe.

He said Zenya had a 3.5-per-cent share of Thailand's Bt4-billion, ready-to-drink tea market, a market which is expected to drop by almost 30 per cent this year due to the aggressive sales promotions launched last year by major players having created false demand.

Chatchawe urged the government to provide support to the green-tea product category in terms of export promotion, tax and public relations.

He said almost all the raw materials for making green-tea products were sourced locally, and all the major local producers were Thai.

Kwanchai Rungfapaisarn

The Nation








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