South Korea & China: Oriental Brewery looking to export its Cass beer to China

Oriental Brewery (OB), a South Korean beer company, plans to export one of its flagship alcohol beverages to China this year, using the marketing and sales networks of its parent company Anheuser-Busch InBev (AB InBev) in the region, the company said on January 30.

The beer brand OB will be introducing to Chinese consumers will be Cass, which will be more expensive than Tsingtao and Harbin, but cheaper than AB InBev's Budweiser.

It seeks to use its export momentum in Japan, Hong Kong and Mongolia to extend its reach to mainland China, the world's second largest economy, it added.

OB's Blue Girl, which is distributed by Jebsen in Hong Kong, has been the No. 1 beer brand in the Chinese city since 2007.

The premium beer may be 50 percent more expensive than other alcohol beverages in Hong Kong, but it was able to surpass San Miguel's market share.

This is because OB used a localization strategy by making and distributing Blue Girl tailored to Hong Kong consumers.

OB's Cass is the No. 1 beer in Mongolia with a 40 percent market share, the company added.

It began marketing and selling Cass in Mongolia in December 1998 through its unique delivery system in which the beer can be transported unfrozen in extreme cold weather.

OB also has Barreal in Japan.

The company mainly makes its beers through an original design manufacturing system to appeal to regional consumers. They are distributed by OB's regional partners.

"With our momentum in Mongolia and other Asian markets, OB will continue to move forward with differentiated marketing strategies to boost our exports," said an OB official.

OB's beer exports account for about 65 percent of total beer shipped abroad.

AB InBev reacquired OB in April 2014, and unveiled its plan to further boost the brand value of Cass in Asia.

29 January, 2018