South Korea: InBev denies press reports it will pull out of South Korean market

Belgian brewer InBev has denied reports it is to pull out of the South Korean market, published in Belgian daily 'La Libre Belgique' July 19, Forbes posted July 17.

According to the newspaper, the group is seeking to sell its Korean subsidiary Oriental Brewery, where 'sales are in free fall.'

'This is not correct. InBev has no intention of leaving the South Korean market, or selling its subsidiary, because South Korea is a very important market for us,' said a spokesman for the company.

In the newspaper reports, 'reliable sources' said the brewer's management had been in contact with Korean distribution group Lotte, in parallel with HSBC making enquiries to another local food group, about a whole or partial sale of InBev's Oriental Brewery.

InBev has been the market challenger in South Korea for 10 years and currently has 41.7 pct market share. However sales have been falling since the end of 2005 due to a change in group strategy.

21 July, 2006