By Kim Hyun-cheol
Staff Reporter
With local conglomerates looking to expand their business territory, some of them are looking to capitalize on the ever-growing popularity of "makgeolli," the traditional Korean rice liquor, by plunging into the alcoholic beverage industry.
Most of the nation's leading business groups have recently revised their articles of association with new additions to suit their business purposes. Newly-augmented businesses vary from forerunning industries such as recycled energy to some niche markets such as funeral services.
Among them is Nongshim, one of the nation's leading food companies, which suggested a revision of its corporate articles on Friday. If the new articles pass, Nongshim, a leader in instant noodles, will have alcoholic drinks added to its product line.
It is purportedly preparing to launch "Samdasoo Makgeolli," its own brand of the drink to be produced on Jeju, where it is already producing the water products under the same label.
"(The plan) is under review as a long-term project, but nothing has been confirmed yet," a Nongshim spokesman said.
A similar plan is expected to happen this week at the shareholders' meeting of another food giant, Sempio Food Company, which is planning to add alcoholic beverages to its business.
Even though the maker says it doesn't have any particular plan in mind, predictions suggest that Sempio is zeroing in on the makgeolli market because it has advantages in fermentation technology, a key in brewing makgeolli, as a leading maker of soybean sauces.
Earlier, CJ Cheiljedang was rumored to be considering tapping into the makgeolli market, but it officially announced it would not.
Its CEO Kim Jin-soo said it would not build a production facility of its own at a press conference last month. "However, we are carrying on studies on yeasts to be used in makgeolli brewing, and are inclined to be an export agent for the drink by using our overseas sales network," he added.
The makgeolli frenzy among big companies is not confined only to the domestic market. Jinro Japan, a Japanese unit of the Hite - Jinro Group, debuted a makgeolli product last month targeting Japanese consumers.
Launched initially in the Kansai region, including cities such as Osaka and Kobe, sales of Jinro Makgeolli will go nationwide this month. It is looking to sell 1.5 million bottles of the product this year.
Behind the ambitious target is the surging popularity of the drink ― makgeolli sales have posted a sensational ten-fold leap in the last 10 years in Japan. The country consumed 6,157 tons of makgeolli last year, soaring from 611 tons in 1999.
While younger people have been drinking less alcoholic beverages in the past few years, makgeolli remains a rare exception in the market, according to KOTRA, Korea's state-run trade agency.
Long overshadowed by western drinks such as whiskey and wine for decades, the cloudy peasant-style drink is enjoying its greatest popularity ever both at home and abroad.
With the popularity, however, fear is on the rise that mass production in the overheated market might lead to deterioration in quality.
The agency revealed that Kooksoondang Brewery, one of the largest Korean makers of traditional drinks, has been using imported rice in its popular "Saengmakgeolli" products to reduce costs. Since being launched in May last year, the brand reached 10 million bottles in sales in less than nine months.
The revelation led to controversy that the major maker had failed to meet the public belief that it used homegrown ingredients in brewing traditional drinks, and drew criticism that it had gone against the government-led promotion of makgeolli as a means of fostering consumption of its mounting stockpile of the grain.
For protection of small-sized makgeolli makers, the government is also considering allowing such makers to sell their products online. Critics, however, say it remains to be seen whether the policy will work efficiently.