LOTTE Chilsung Beverage has launched a promotional event this summer to expand sales of its "Zero Cider." LOTTE Chilsung Beverage is in need of improvement in the beverage institutional sector.
According to related industries on the 21st, LOTTE Chilsung Beverage is currently running a "3+1 event" in major restaurant areas. The 3+1 event is a sales method where if you buy 3 cans, you receive an additional can for free. LOTTE Chilsung Beverage sells one can of regular cider and one can of zero cider at 792 won, and if you buy 3 cans, you get an additional can for free. The 3+1 event also includes Pepsi-Cola and Toms. A regular Pepsi-Cola or zero Pepsi-Cola is sold at 708 won per 355ml can. Toms costs 667 won per 355ml can. This event is designed to apply only if you purchase zero cider. It seems aimed at increasing sales of zero cider.
A temporary price discount event is also being held, with a discount rate of 25%. The price of regular and zero cider, which were being sold for 19,000 won for 24 cans, has been reduced to 14,250 won. The price of regular and zero Pepsi-Cola has also been lowered to 12,750 won.
The reason that LOTTE Chilsung Beverage is giving away more products and lowering prices is to gain an advantage in sales this summer. Generally, carbonated beverages sell well in the heat of summer.
From LOTTE Chilsung Beverage's perspective, it is also necessary to improve performance in the beverage institutional sector. The company's consolidated operating profit for the first quarter of this year was 25 billion won, down 31.9% compared to the same period last year. During the same period, sales decreased by 2.8%, recording 910.3 billion won.
The underperformance of the beverage institutional sector dragged down overall performance. The beverage institutional sector's standalone sales for the first quarter this year were 408.2 billion won, down 5.4% compared to the same period last year. During the same period, operating profit shrank by 45.6% to 13 billion won. LOTTE Chilsung Beverage pointed to the slowdown in domestic consumer spending and rising materials and supplies costs as the background for the downturn.
A distribution industry official noted, "It seems difficult for juice to recover in the domestic beverage market, so we need to compete in the carbonated beverage market. It appears that LOTTE Chilsung is focusing on market penetration this summer. However, if the events continue, managing profitability will become difficult, so how this point is managed will be crucial."