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The Korea Herald
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THE INVESTOR
March 29, 2024

Retail & Consumer

Race heats up for W200b sales rights of Samdasu

  • PUBLISHED :July 24, 2017 - 17:42
  • UPDATED :July 24, 2017 - 17:44
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[THE INVESTOR] The race is heating for the lucrative sales rights of Samdasu, the nation’s No. 1 mineral water brand based in the resort island of Jeju, worth around 200 billion won (US$179.41 million).

Bids are being received until Aug. 3 and the winner will be announced by September. 





Sources say Kwang Dong Pharmaceutical, the current operator, is seeking to renew the contract, while some retailers and food companies such as Lotte Chilsung Beverage, Coca-Cola Korea, Ourhome and Woognjin Foods are cited as potential bidders.

Kwang Dong earned 183.8 billion won revenue from Samdasu last year, which made up 29 percent of its total sales. The contract expires in December.

The local government will limit sales channels for the new contract, allowing the contractor sell bottled water through small retailers and restaurants outside Jeju Island only.

Despite the less favorable deal conditions, expectations are high considering Samdasu’s unrivaled market position here with a whopping 41.5 percent share.

Nongshim, a leading ramen producer, owned the distribution rights for 14 years until 2012. But the local government didn’t renew the contract, saying the food maker did not share profits fairly.

The firm, which launched its own mineral water brand Baeksansu in 2012, has not yet decided on bidding, sources said.

By Song Seung-hyun (ssh@heraldcorp.com)

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