LIST OF CONTENTS AND TABLES

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2 LIST OF CONTENTS AND TABLES Soft Drinks in South Korea - Industry Overview... 1 Executive Summary... 1 Premiumisation Leads Healthy Growth... 1 Health and Wellness Continues To Attract Consumers... 1 Two Leading Companies Maintain Positions... 1 sparkling Becomes Popular... 1 Soft Drinks Will See Rapid Growth But Rapid Change... 2 Key Trends and Developments... 2 Premiumisation Continues To Drive Growth... 2 sparkling Well Received by South Korean Consumers... 3 Leading Players Remain in Strong Positions... 4 Specialist Coffee Shops the Entry Channel for Premium Soft Drinks... 5 Marketing Strategies Through Smartphones Become Active... 6 Market Data... 7 Table 1 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume Table 2 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth Table 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value Table 4 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth Table 5 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: Volume Table 6 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: % Volume Table 7 Off-trade vs On-trade Sales of Soft Drinks by Category: Value Table 8 Off-trade vs On-trade Sales of Soft Drinks by Category: % Value Table 9 Off-trade Sales of Soft Drinks (as sold) by Category: Volume Table 10 Off-trade Sales of Soft Drinks (as sold) by Category: % Volume Growth Table 11 Off-trade Sales of Soft Drinks by Category: Value Table 12 Off-trade Sales of Soft Drinks by Category: % Value Growth Table 13 Company Shares of Off-trade Soft Drinks (as sold) by Volume Table 14 Brand Shares of Off-trade Soft Drinks (as sold) by Volume Table 15 Company Shares of Off-trade Soft Drinks (RTD) by Volume Table 16 Brand Shares of Off-trade Soft Drinks (RTD) by Volume Table 17 Company Shares of Off-trade Soft Drinks by Value Table 18 Brand Shares of Off-trade Soft Drinks by Value Table 19 Off-trade Sales of Soft Drinks by Category and Distribution Format: % Analysis Table 20 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume

3 Table 21 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth Table 22 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value Table 23 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth Table 24 Forecast Off-trade Sales of Soft Drinks (as sold) by Category: Volume Table 25 Forecast Off-trade Sales of Soft Drinks (as sold) by Category: % Volume Growth Table 26 Forecast Off-trade Sales of Soft Drinks by Category: Value Table 27 Forecast Off-trade Sales of Soft Drinks by Category: % Value Growth Appendix Fountain Sales in South Korea Data Table 28 Off-trade vs On-trade Fountain Sales of Soft Drinks: Volume Table 29 Off-trade vs On-trade Fountain Sales of Soft Drinks: % Volume Growth Table 30 Off-trade vs On-trade Fountain Sales of Carbonates: Volume Table 31 Off-trade vs On-trade Fountain Sales of Carbonates: % Volume Growth Table 32 Forecast Off-trade vs On-trade Fountain Sales of Soft Drinks: Volume Table 33 Forecast Off-trade vs On-trade Fountain Sales of Soft Drinks: % Volume Growth Table 34 Forecast Off-trade vs On-trade Fountain Sales of Carbonates: Volume Table 35 Forecast Off-trade vs On-trade Fountain Sales of Carbonates: % Volume Growth Definitions Summary 1 Research Sources Soft Drinks in South Korea - Company Profiles Dong-a Otsuka Co Ltd in Soft Drinks (south Korea) Strategic Direction Key Facts Summary 2 Dong-A Otsuka Co Ltd: Key Facts Summary 3 Dong-A Otsuka Co Ltd: Operational Indicators Company Background Production Competitive Positioning Summary 4 Dong-A Otsuka Co Ltd: Competitive Position Haitai Beverage Co Ltd in Soft Drinks (south Korea) Strategic Direction Key Facts... 27

4 Summary 5 Haitai Beverage Co Ltd: Key Facts Summary 6 Haitai Beverage Co Ltd: Operational Indicators Company Background Production Summary 7 Haitai Beverage Co Ltd: Production Statistics Competitive Positioning Summary 8 Haitai Beverage Co Ltd: Competitive Position Lotte Chilsung Beverage Co Ltd in Soft Drinks (south Korea) Strategic Direction Key Facts Summary 9 Lotte Chilsung Beverage Co Ltd: Key Facts Summary 10 Lotte Chilsung Beverage Co Ltd: Operational Indicators Company Background Production Summary 11 Lotte Chilsung Beverage Co Ltd: Production Statistics Competitive Positioning Summary 12 Lotte Chilsung Beverage Co Ltd: Competitive Position Woongjin Food Co Ltd in Soft Drinks (south Korea) Strategic Direction Key Facts Summary 13 Woongjin Food Co Ltd: Key Facts Summary 14 Woongjin Food Co Ltd: Operational Indicators Company Background Production Summary 15 Woongjin Food Co Ltd: Production Statistics Competitive Positioning Summary 16 Woongjin Food Co Ltd: Competitive Position Bottled Water in South Korea - Category analysis Headlines Trends Competitive Landscape Prospects Category Data Institutional Bottled Water Sales Table 36 Sales of Bottled Water to Institutional Channel Table 37 Off-trade Sales of Bottled Water: Volume Table 38 Off-trade Sales of Bottled Water: Value Table 39 Off-trade Sales of Bottled Water: % Volume Growth Table 40 Off-trade Sales of Bottled Water: % Value Growth Table 41 Company Shares of Bottled Water by Off-trade Volume Table 42 Brand Shares of Bottled Water by Off-trade Volume Table 43 Company Shares of Bottled Water by Off-trade Value Table 44 Brand Shares of Bottled Water by Off-trade Value Table 45 Forecast Off-trade Sales of Bottled Water: Volume Table 46 Forecast Off-trade Sales of Bottled Water: Value

5 Table 47 Forecast Off-trade Sales of Bottled Water: % Volume Growth Table 48 Forecast Off-trade Sales of Bottled Water: % Value Growth Carbonates in South Korea - Category analysis Headlines Trends Competitive Landscape Prospects Category Data Table 49 Low Calorie Carbonates by Subsector Table 50 Off-trade Sales of Carbonates by Category: Volume Table 51 Off-trade Sales of Carbonates by Category: Value Table 52 Off-trade Sales of Carbonates by Category: % Volume Growth Table 53 Off-trade Sales of Carbonates by Category: % Value Growth Table 54 On-trade vs Off-trade Sales of Carbonates: Volume Table 55 On-trade vs Off-trade Sales of Carbonates: Value Table 56 On-trade vs Off-trade Sales of Carbonates: % Volume Growth Table 57 On-trade vs Off-trade Sales of Carbonates: % Value Growth Table 58 Off-trade Sales of Low Calorie Cola Carbonates by Category: % Volume Breakdown Table 59 Company Shares of Carbonates by Off-trade Volume Table 60 Brand Shares of Carbonates by Off-trade Volume Table 61 Company Shares of Carbonates by Off-trade Value Table 62 Brand Shares of Carbonates by Off-trade Value Table 63 Forecast Off-trade Sales of Carbonates by Category: Volume Table 64 Forecast Off-trade Sales of Carbonates by Category: Value Table 65 Forecast Off-trade Sales of Carbonates by Category: % Volume Growth Table 66 Forecast Off-trade Sales of Carbonates by Category: % Value Growth Concentrates in South Korea - Category analysis Headlines Trends Competitive Landscape Prospects Category Data Concentrates Conversions Table 67 Concentrates Conversion Factors for Ready-to-Drink (RTD) Format Table 68 Off-trade Sales of Concentrates (as sold) by Category: Volume Table 69 Off-trade Sales of Concentrates (as sold) by Category: % Volume Growth

6 Table 70 Off-trade Sales of Concentrates (RTD) by Category: Volume Table 71 Off-trade Sales of Concentrates (RTD) by Category: % Volume Growth Table 72 Off-trade Sales of Concentrates by Category: Value Table 73 Off-trade Sales of Concentrates by Category: % Value Growth Table 74 Company Shares of Powder Concentrates (as sold) by Off-trade Volume Table 75 Brand Shares of Powder Concentrates (as sold) by Off-trade Volume Table 76 Company Shares of Concentrates (RTD) by Off-trade Volume Table 77 Brand Shares of Concentrates (RTD) by Off-trade Volume Table 78 Company Shares of Concentrates by Off-trade Value Table 79 Brand Shares of Concentrates by Off-trade Value Table 80 Forecast Off-trade Sales of Concentrates (as sold) by Category: Volume Table 81 Forecast Off-trade Sales of Concentrates (as sold) by Category: % Volume Growth Table 82 Forecast Off-trade Sales of Concentrates (RTD) by Category: Volume Table 83 Forecast Off-trade Sales of Concentrates (RTD) by Category: % Volume Growth Table 84 Forecast Off-trade Sales of Concentrates by Category: Value Table 85 Forecast Off-trade Sales of Concentrates by Category: % Value Growth Fruit/vegetable Juice in South Korea - Category analysis Headlines Trends Competitive Landscape Prospects Category Data Table 86 Off-trade Sales of Fruit/Vegetable Juice by Category: Volume Table 87 Off-trade Sales of Fruit/Vegetable Juice by Category: Value Table 88 Off-trade Sales of Fruit/Vegetable Juice by Category: % Volume Growth Table 89 Off-trade Sales of Fruit/Vegetable Juice by Category: % Value Growth Table 90 Leading Flavours for 100% Juice: % Volume Breakdown Table 91 Leading Flavours for Nectars (25-99% Juice): % Volume Breakdown Table 92 Leading Flavours for Juice Drinks (up to 24% Juice): % Volume Breakdown Table 93 % Share of Smoothies in 100% Juice and Nectars (25-99% Juice): Off-trade Value Table 94 Chilled Vs Ambient Reconstituted 100% Juice: % Analysis

7 Table 95 Company Shares of Fruit/Vegetable Juice by Off-trade Volume Table 96 Brand Shares of Fruit/Vegetable Juice by Off-trade Volume Table 97 Company Shares of Fruit/Vegetable Juice by Off-trade Value Table 98 Brand Shares of Fruit/Vegetable Juice by Off-trade Value Table 99 Forecast Off-trade Sales of Fruit/Vegetable Juice by Category: Volume Table 100 Forecast Off-trade Sales of Fruit/Vegetable Juice by Category: Value Table 101 Forecast Off-trade Sales of Fruit/Vegetable Juice by Category: % Volume Growth Table 102 Forecast Off-trade Sales of Fruit/Vegetable Juice by Category: % Value Growth Rtd Coffee in South Korea - Category analysis Headlines Trends Competitive Landscape Prospects Category Data Table 103 Off-trade Sales of RTD Coffee: Volume Table 104 Off-trade Sales of RTD Coffee: Value Table 105 Off-trade Sales of RTD Coffee: % Volume Growth Table 106 Off-trade Sales of RTD Coffee: % Value Growth Table 107 Company Shares of RTD Coffee by Off-trade Volume Table 108 Brand Shares of RTD Coffee by Off-trade Volume Table 109 Company Shares of RTD Coffee by Off-trade Value Table 110 Brand Shares of RTD Coffee by Off-trade Value Table 111 Forecast Off-trade Sales of RTD Coffee: Volume Table 112 Forecast Off-trade Sales of RTD Coffee: Value Table 113 Forecast Off-trade Sales of RTD Coffee: % Volume Growth Table 114 Forecast Off-trade Sales of RTD Coffee: % Value Growth Rtd Tea in South Korea - Category analysis Headlines Trends Competitive Landscape Prospects Category Data Table 115 Off-trade Sales of RTD Tea by Category: Volume Table 116 Off-trade Sales of RTD Tea by Category: Value Table 117 Off-trade Sales of RTD Tea by Category: % Volume Growth Table 118 Off-trade Sales of RTD Tea by Category: % Value Growth Table 119 Leading Flavours for RTD Tea: % Volume Breakdown Table 120 Company Shares of RTD Tea by Off-trade Volume Table 121 Brand Shares of RTD Tea by Off-trade Volume Table 122 Company Shares of RTD Tea by Off-trade Value

8 Table 123 Brand Shares of RTD Tea by Off-trade Value Table 124 Forecast Off-trade Sales of RTD Tea by Category: Volume Table 125 Forecast Off-trade Sales of RTD Tea by Category: Value Table 126 Forecast Off-trade Sales of RTD Tea by Category: % Volume Growth Table 127 Forecast Off-trade Sales of RTD Tea by Category: % Value Growth Sports and Energy Drinks in South Korea - Category analysis Headlines Trends Competitive Landscape Prospects Category Data Table 128 Still vs Carbonated Sports and Energy Drinks % Off-trade Volume Table 129 Off-trade Sales of Sports and Energy Drinks by Category: Volume Table 130 Off-trade Sales of Sports and Energy Drinks by Category: Value Table 131 Off-trade Sales of Sports and Energy Drinks by Category: % Volume Growth Table 132 Off-trade Sales of Sports and Energy Drinks by Category: % Value Growth Table 133 Company Shares of Sports and Energy Drinks by Off-trade Volume Table 134 Brand Shares of Sports and Energy Drinks by Off-trade Volume Table 135 Company Shares of Sports and Energy Drinks by Off-trade Value Table 136 Brand Shares of Sports and Energy Drinks by Off-trade Value Table 137 Forecast Off-trade Sales of Sports and Energy Drinks by Category: Volume Table 138 Forecast Off-trade Sales of Sports and Energy Drinks by Category: Value Table 139 Forecast Off-trade Sales of Sports and Energy Drinks by Category: % Volume Growth Table 140 Forecast Off-trade Sales of Sports and Energy Drinks by Category: % Value Growth Asian Speciality Drinks in South Korea - Category analysis Headlines Trends Competitive Landscape Prospects Category Data Table 141 Off-trade Sales of Asian Speciality Drinks by Category: Volume

9 Table 142 Off-trade Sales of Asian Speciality Drinks by Category: Value Table 143 Off-trade Sales of Asian Speciality Drinks by Category: % Volume Growth Table 144 Off-trade Sales of Asian Speciality Drinks by Category: % Value Growth Table 145 Company Shares of Asian Speciality Drinks by Off-trade Volume Table 146 Brand Shares of Asian Speciality Drinks by Off-trade Volume Table 147 Company Shares of Asian Speciality Drinks by Off-trade Value Table 148 Brand Shares of Asian Speciality Drinks by Off-trade Value Table 149 Forecast Off-trade Sales of Asian Speciality Drinks by Category: Volume Table 150 Forecast Off-trade Sales of Asian Speciality Drinks by Category: Value Table 151 Forecast Off-trade Sales of Asian Speciality Drinks by Category: % Volume Growth Table 152 Forecast Off-trade Sales of Asian Speciality Drinks by Category: % Value Growth

10 SOFT DRINKS IN SOUTH KOREA - INDUSTRY OVERVIEW EXECUTIVE SUMMARY Premiumisation Leads Healthy Growth In 2010, soft drinks experienced healthy growth, registering a 6% increase in off-trade value sales and a 5% increase in off-trade volume sales, thanks to a premiumisation trend, especially within bottled water, fruit/vegetable juice, carbonates and RTD coffee. Imported and premium brands of bottled water, carbonated bottled water and fruit/vegetable juice recorded healthy growth rates. In the case of fruit/vegetable juice, the category continued to see declining volume sales but imported premium juice expanded its presence in South Korea. New flavours of carbonates and renewed brands without sugar and preservatives were also popular launches. However, RTD tea and Asian speciality drinks showed volume declines as they fell out of fashion. Health and Wellness Continues To Attract Consumers With the growing health and wellness trend, healthy concepts remained popular among South Korean consumers. In particular, various vitamins have been used to target different consumer groups and manufacturers have highlighted the varied functions of different vitamins in their products, targeting sophisticated South Korean consumers. Vitamin B has been marketed for its anti-ageing properties. Vitamin C and collagen remained among the favourite ingredients for skin health. At the same time, manufacturers tried to strengthen healthy brands through advertising, the shape of packaging and using brand names to appeal to a sophisticated South Korean consumer base. Two Leading Companies Maintain Positions Lotte Chilsung Beverage Co Ltd and Coca-Cola Korea Co maintained the two leading positions in 2010, accounting for a 48% combined share in off-trade value terms. Lotte Chilsung remained in the leading position with 33% of off-trade value sales in The company strengthened its product portfolio, launching premium fruit/vegetable juice and sports drinks and renewing its well-known carbonates and flavoured bottled water lines, recording a positive growth rate although a decline in share. Coca-Cola Korea also introduced a smaller version of its Coca-Cola brand, Mini Coke, which proved popular among younger consumers. sparkling Becomes Popular In 2010, sparkling was a popular concept within soft drinks. South Koreans generally perceive sparkling drinks to be less healthy, a traditional perception associated with carbonates. However, carbonates have seen continued positive growth since 2008, despite the health and wellness trend. Growing numbers of South Korean consumers looking for refreshing carbonated options in soft drinks have become apparent. New product developments, presented as sparkling versions of fruit/vegetable juice and RTD tea, were introduced during Carbonated bottled water experienced strong growth in Furthermore, manufacturers offered health-positioned drinks in a carbonated format to attract consumers who are sensitive to their health needs.

11 Soft Drinks Will See Rapid Growth But Rapid Change Content removed from sample KEY TRENDS AND DEVELOPMENTS Premiumisation Continues To Drive Growth Content removed from sample Current Impact Content removed from sample Outlook Content removed from sample

12 Content removed from sample Future Impact Content removed from sample sparkling Well Received by South Korean Consumers Content removed from sample Current Impact Content removed from sample Outlook Content removed from sample

13 Content removed from sample Future Impact Content removed from sample Leading Players Remain in Strong Positions Content removed from sample Current Impact Content removed from sample Outlook Content removed from sample

14 Content removed from sample Future Impact Content removed from sample Specialist Coffee Shops the Entry Channel for Premium Soft Drinks Content removed from sample Current Impact Content removed from sample Outlook Content removed from sample

15 Future Impact Content removed from sample Marketing Strategies Through Smartphones Become Active Content removed from sample Current Impact Content removed from sample Outlook Content removed from sample Future Impact Content removed from sample

16 MARKET DATA Table 1 million litres OFF-trade ON-trade Total Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume Note: Excludes powder concentrates Table 2 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth % volume growth OFF-trade ON-trade Total 2009/ CAGR 2005/10 TOTAL Note: Excludes powder concentrates Table 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value Won billion OFF-trade ON-trade Total Table 4 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth % current value growth OFF-trade ON-trade Total 2009/ CAGR 2005/10 TOTAL

17 Table 5 million litres Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: Volume 2010 Off-trade On-trade TOTAL Bottled Water Carbonates Concentrates Fruit/Vegetable Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Note: Excludes powder concentrates Table 6 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: % Volume 2010 % volume analysis Bottled Water Carbonates Concentrates Fruit/Vegetable Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Off-trade On-trade Total Note: Excludes powder concentrates Table 7 Off-trade vs On-trade Sales of Soft Drinks by Category: Value 2010 Won billion Bottled Water Carbonates Concentrates Fruit/Vegetable Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Off-trade On-trade TOTAL

18 Table 8 Off-trade vs On-trade Sales of Soft Drinks by Category: % Value 2010 % value analysis Bottled Water Carbonates Concentrates Fruit/Vegetable Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Off-trade On-trade Total Table 9 Off-trade Sales of Soft Drinks (as sold) by Category: Volume million litres Bottled Water Carbonates Concentrates Fruit/Vegetable Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Note: Excludes powder concentrates Table 10 Off-trade Sales of Soft Drinks (as sold) by Category: % Volume Growth % volume growth Bottled Water Carbonates Concentrates Fruit/Vegetable Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks 2009/ CAGR 2005/10 TOTAL Note: Excludes powder concentrates Table 11 Off-trade Sales of Soft Drinks by Category: Value

19 Won billion Bottled Water Carbonates Concentrates Fruit/Vegetable Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Table 12 Off-trade Sales of Soft Drinks by Category: % Value Growth % current value growth Bottled Water Carbonates Concentrates Fruit/Vegetable Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks 2009/ CAGR 2005/10 TOTAL Table 13 Company Shares of Off-trade Soft Drinks (as sold) by Volume % off-trade volume Company

20 Total Note: Excludes powder concentrates Table 14 Brand Shares of Off-trade Soft Drinks (as sold) by Volume % off-trade volume Brand Company

21 Total Note: Excludes powder concentrates Table 15 Company Shares of Off-trade Soft Drinks (RTD) by Volume % off-trade volume Company Others Total

22 Table 16 Brand Shares of Off-trade Soft Drinks (RTD) by Volume % off-trade volume Brand Company

23 Total Table 17 Company Shares of Off-trade Soft Drinks by Value % off-trade value rsp Company Total Table 18 Brand Shares of Off-trade Soft Drinks by Value % off-trade value rsp Brand Company

24 Others Total Table 19 Off-trade Sales of Soft Drinks by Category and Distribution Format: % Analysis 2010

25 % off-trade BW C Con F/VJ RTD C RTD T Store-Based Retailing Grocery Retailers Supermarkets/Hypermarkets Discounters Small Grocery Retailers Convenience Stores Independent Small Grocers Forecourt Retailers Other Grocery Retailers Non-Grocery Retailers Non-Store Retailing Vending Homeshopping Internet Retailing Direct Selling Total SED ASD Store-Based Retailing Grocery Retailers Supermarkets/Hypermarkets Discounters Small Grocery Retailers Convenience Stores Independent Small Grocers Forecourt Retailers Other Grocery Retailers Non-Grocery Retailers Non-Store Retailing Vending Homeshopping Internet Retailing Direct Selling Total Key: Note: BW = bottled water; C = carbonates; Con = concentrates; F/VJ = fruit/vegetable juice; RTD C = RTD coffee; RTD T = RTD tea; SED = sports and energy drinks; ASD = Asian speciality drinks Excludes powder concentrates Table 20 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume million litres OFF-trade ON-trade Total Note: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Excludes powder concentrates

26 Table 21 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth % volume growth OFF-trade ON-trade Total 2014/ CAGR 2010/15 TOTAL Note: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Excludes powder concentrates Table 22 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value Won billion OFF-trade ON-trade Total Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 23 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth % current value growth OFF-trade ON-trade Total 2014/ CAGR 2010/15 TOTAL Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 24 Forecast Off-trade Sales of Soft Drinks (as sold) by Category: Volume million litres Bottled Water Carbonates Concentrates Fruit/Vegetable Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Note: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Excludes powder concentrates

27 Table 25 % volume growth Forecast Off-trade Sales of Soft Drinks (as sold) by Category: % Volume Growth / CAGR 2010/15 TOTAL Bottled Water Carbonates Concentrates Fruit/Vegetable Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Note: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Excludes powder concentrates Table 26 Forecast Off-trade Sales of Soft Drinks by Category: Value Won billion Bottled Water Carbonates Concentrates Fruit/Vegetable Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 27 Forecast Off-trade Sales of Soft Drinks by Category: % Value Growth % constant value growth Bottled Water Carbonates Concentrates Fruit/Vegetable Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks CAGR 2010/15 TOTAL Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

28 APPENDIX Fountain Sales in South Korea Trends Fountain sales continued positive growth in on-trade volume terms while fountain on-trade volume sales through convenience stores declined during In South Korea, most fountain sales occurred in the foodservice channel, which accounted for a 97% share of total fountain volume sales in Fountain sales through convenience stores tend to be subject to seasonality, with demand being higher in summer. As such, few convenience stores offer fountain sales for soft drinks in South Korea. In addition, most convenience stores are limited in their selling space, making it increasingly difficult to site the fountains on the premises. Only a small number around school zones tend to offer fountain sales. Content removed from sample DATA Table 28 Off-trade vs On-trade Fountain Sales of Soft Drinks: Volume million litres OFF-trade ON-trade Fountain ON-trade volume through c-store Fountain ON-trade volume through food store Total fountain ON-trade volume Total

29 Note: Total fountain on-trade volume data included in on-trade Table 29 Off-trade vs On-trade Fountain Sales of Soft Drinks: % Volume Growth % fountain volume growth OFF-trade ON-trade Fountain ON-trade volume through c-store Fountain ON-trade volume through food store Total fountain ON-trade volume Total 2009/ CAGR 2005/10 TOTAL Note: Total fountain on-trade volume data included in on-trade Table 30 Off-trade vs On-trade Fountain Sales of Carbonates: Volume million litres OFF-trade ON-trade Fountain ON-trade volume through c-store Fountain ON-trade volume through food store Total fountain ON-trade volume Total Note: Total fountain on-trade volume data included in on-trade Table 31 Off-trade vs On-trade Fountain Sales of Carbonates: % Volume Growth % fountain volume growth OFF-trade ON-trade Fountain ON-trade volume through c-store Fountain ON-trade volume through food store Total fountain ON-trade volume Total 2009/ CAGR 2005/10 TOTAL Note: Total fountain on-trade volume data included in on-trade

30 Table 32 Forecast Off-trade vs On-trade Fountain Sales of Soft Drinks: Volume million litres OFF-trade ON-trade Fountain ON-trade volume through c-store Fountain ON-trade volume through food store Total fountain ON-trade volume Total,,,,,, Note: Total fountain on-trade volume data included in on-trade Table 33 Forecast Off-trade vs On-trade Fountain Sales of Soft Drinks: % Volume Growth % fountain volume growth OFF-trade ON-trade Fountain ON-trade volume through c-store Fountain ON-trade volume through food store Total fountain ON-trade volume Total 2014/ CAGR 2010/15 TOTAL Note: Total fountain on-trade volume data included in on-trade Table 34 Forecast Off-trade vs On-trade Fountain Sales of Carbonates: Volume million litres OFF-trade ON-trade Fountain ON-trade volume through c-store Fountain ON-trade volume through food store Total fountain ON-trade volume Total 2, , , , , ,612.6 Note: Total fountain on-trade volume data included in on-trade

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43 BOTTLED WATER IN SOUTH KOREA - CATEGORY ANALYSIS HEADLINES In 2010, bottled water sees 9% total volume growth The health and wellness trend continues to drive premium bottled water growth in South Korea Carbonated bottled water records the strongest total volume growth at 26% in 2010 Average unit prices increase by 1% in 2010 Nong Shim Co Ltd continues to lead bottled water sales in value terms with a 17% off-trade value share Bottled water is expected to grow at a CAGR of 6% in total volume terms over the forecast period TRENDS In 2010, bottled water continued to register strong growth, rising by 9% in total volume terms, mainly thanks to the good performance of still bottled water and carbonated bottled water. While more South Korean consumers are becoming aware of the importance of water consumption, premium bottled water such as deep sea water and imported bottled water, from various countries, including Evian (Groupe Danone) and Fiji by Fiji Water LLC performed well. Still bottled water recorded 9% growth in total volume terms. Still bottled water is considered an important aspect of the non-alcoholic drinks industry. Historically, the major factor driving growth was consumers distrust of tap water. During 2009, more South Korean consumers switched to bottled water from RTD tea which is cheaper in terms of unit price. With the economic recovery in 2010, more South Korean consumers have started to look for premium bottled water with health claims, for example those that include the minerals of specific regions. In September 2010, the US premium water brand, Fiji by Fiji Water LLC was introduced in South Korea and it has shown very healthy growth in The average unit price of bottled water as a whole rose by 1% in 2010, although the unit price of still bottled water increased by 3%. This is because premiumisation strongly impacted this category; the Evian brand increased by 62% in off-trade sales value in 2010, and the premium bottled water Fiji was introduced in As increasing numbers of South Korean consumers have been to Europe and the US, the premium still bottled water category continued to grow, supported by those consumers. This trend contributed to the rise in unit price. Carbonated bottled water showed strong growth in Lotte Chilsung Beverage Co Ltd relaunched Trevi, which targets female consumers, with a special bottle design in As the leading company in soft drinks, Lotte Chilsung entered carbonated bottled water with a positive marketing campaign for its Trevi brand; this category is expected to increase rapidly. Total volume sales of carbonated bottled water increased at a CAGR of 38% over the review period and they are expected to increase at a CAGR of 14% during the forecast period. When compared to European countries and neighbouring Japan, the carbonated bottled water category in South Korea still very small, thus it has the potential to grow more.

44 Functional bottled water continued to see a decline, falling by 8% in total volume terms due to the discontinuation of water containing amino acids. As water containing vitamins replaced amino acids water, vitamin water showed strong growth. Coca-Cola Korea Co introduced Glacéau VitaminWater in 2009, which stimulated some interest in the category. This brand registered 90% growth in COMPETITIVE LANDSCAPE In off-trade value terms, Nong Shim Co Ltd s brand Cheju Samdasoo led the bottled water category with a share of 17% in Cheju Samdasoo is produced by the Jeju Provincial Development Corp in collaboration with Nong Shim and has maintained its leadership position as a result of its pure and clean positioning, using the clean image of Jeju Island during product promotion. In the context of the sweltering summer weather, the brand s sales soared. In August 2010, its orders exceeded 2,600 tonnes per day, even though the average production capability was 1.8 million litres. In addition, Jeju Samdasoo was designated the official still bottled water for the 2010 G20 Seoul Summit. Content removed from sample PROSPECTS The bottled water category is expected to see sales rise at a CAGR of 6% in total volume terms over the forecast period. Premium water that includes minerals or is sourced from special locations, carbonated bottled water, and vitamin water will gain popularity among highincome consumers and young consumers who are sensitive changing trends. Young consumers have usually experienced foreign brands through travel or study abroad. As a result, they are familiar with imported premium bottled water brands, and some of them seek out certain brands in South Korea. This consumer base will support the expansion of premium imported brands in the domestic environment.

45 Content removed from sample CATEGORY DATA Institutional Bottled Water Sales Institutional bottled water sales showed growth of 2% during The penetration of bottled water in institutions such as hospitals, universities and organisations has increased as growing numbers of consumers consider tap water to be unsafe in South Korea. Most institutional bottled water is ordered through contractors that offer cooling systems, which are supplied at the time of the water delivery. However, the growth of institutional bottled water sales is slowing as this segment has reached a level of maturity and the barrier to entry is high as the contractors are limited and they have strong distribution networks based on wellestablished relationships with institutions. Table 1 Sales of Bottled Water to Institutional Channel Million litres Sales % growth store checks, trade interviews Table 2 Off-trade Sales of Bottled Water: Volume million litres Carbonated Bottled Water Flavoured Bottled Water Functional Bottled Water Still Bottled Water Bottled Water

46 Table 3 Off-trade Sales of Bottled Water: Value Won billion Carbonated Bottled Water Flavoured Bottled Water Functional Bottled Water Still Bottled Water Bottled Water Table 4 Off-trade Sales of Bottled Water: % Volume Growth % volume growth Carbonated Bottled Water Flavoured Bottled Water Functional Bottled Water Still Bottled Water Bottled Water 2009/ CAGR 2005/10 TOTAL Table 5 Off-trade Sales of Bottled Water: % Value Growth % current value growth Carbonated Bottled Water Flavoured Bottled Water Functional Bottled Water Still Bottled Water Bottled Water 2009/ CAGR 2005/10 TOTAL Table 6 Company Shares of Bottled Water by Off-trade Volume % off-trade volume Company

47 Total Table 7 Brand Shares of Bottled Water by Off-trade Volume % off-trade volume Brand Company Total

48 Table 8 Company Shares of Bottled Water by Off-trade Value % off-trade value rsp Company Total Table 9 Brand Shares of Bottled Water by Off-trade Value % off-trade value rsp Brand Company

49 Total Table 10 Forecast Off-trade Sales of Bottled Water: Volume million litres Carbonated Bottled Water Flavoured Bottled Water Functional Bottled Water Still Bottled Water Bottled Water Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 11 Forecast Off-trade Sales of Bottled Water: Value Won billion Carbonated Bottled Water Flavoured Bottled Water Functional Bottled Water Still Bottled Water Bottled Water Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 12 Forecast Off-trade Sales of Bottled Water: % Volume Growth

50 % volume growth Carbonated Bottled Water Flavoured Bottled Water Functional Bottled Water Still Bottled Water Bottled Water 2014/ CAGR 2010/15 TOTAL Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 13 Forecast Off-trade Sales of Bottled Water: % Value Growth % constant value growth Carbonated Bottled Water Flavoured Bottled Water Functional Bottled Water Still Bottled Water Bottled Water CAGR 2010/15 TOTAL Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

51 CARBONATES IN SOUTH KOREA - CATEGORY ANALYSIS HEADLINES Sales increase by 2% in total volume terms and by 5% in total value terms in 2010 Manufacturers introduce new concept of carbonates including natural ingredients to capitalise on the well-being trend Non juice-based lemonade/lime category registers the fastest growth in 2010, by 6% in total current value terms and 4% in total volume terms The average unit price of carbonates increases by 2% in total current value terms in 2010 Lotte Chilsung Beverage Co Ltd leads in off-trade value terms with a 45% share in 2010 Carbonates sales are expected to increase at a CAGR of 1% total constant value terms and 2% in total volume terms TRENDS In 2010, products within the carbonates category were re-evaluated by consumers, thanks to the introduction of unique concepts. Manufacturers started to add health positioning to carbonates, a strategy which appealed to South Korean consumers during Dong-A Otsuka Co Ltd introduced a new version of its Oran-C brand in late 2009, and it was well accepted by consumers. New Oran-C included 100mg of vitamin C per 100ml and the company used natural fruit juice instead of artificial ingredients. With the increasing concern over health and wellness, more manufacturers have introduced carbonates with added fruit juice in a bid to sustain consumer interest and stem decline. Woongjin Food Co Ltd introduced two new juice-based carbonates in 2010, adding tomato and aloe juice extracts, under the new brand name of O clock. Health and weight management was still the hot issue in South Korea. Male and female celebrities with fit and attractive bodies have been under the spotlight and the trend has spread among South Korean consumers. Manufacturers introduced low calorie products, through reducing sugar, as a response to this trend. Dong-A Otsuka Co Ltd re-launched a non juice-based lemonade/lime brand, Narangde, in 2010 with zero calories and no artificial colouring, which gained popularity during the year. In 2010, on-trade fountain sales of carbonates continued to grow in volume terms, reflecting the increasing numbers of young consumers who frequently enjoy leisure and cultural activities. Full-service restaurants offering Western foods in South Korea, which recorded declining sales in 2009, returned to healthy growth in 2010 with special marketing strategies to attract young consumers. North American full-service restaurants and casual concept European full-service restaurants have seen positive growth in TGI Friday s showed a 10% growth rate and opened three more outlets in As most North American full-service restaurants are returning to healthy performances in 2010, fountain sales in the foodservice channel continued to expand. Average unit price of carbonates at the total level increased by 2% in This was largely due to the higher prices of carbonates with reduced calories and carbonates with no artificial ingredients.

52 COMPETITIVE LANDSCAPE Lotte Chilsung Beverage Co Ltd maintained its leading position in carbonates in 2010 with a 45% share of off-trade value sales. Since LG Household and Health Care Co Ltd acquired Coca-Cola Korea Bottling Co Ltd in 2008, the parent company has supported its brands with marketing efforts and a strong distribution network. Thanks to the support, Coca-Cola Korea Co continued to see healthy growth of 6% in off-trade value sales during in Its value share also saw a marginal increase to 39%. Content removed from sample PROSPECTS Carbonates sales are expected to increase at a CAGR of 1% in total constant value terms and 2% in total volume terms over the forecast period. Cola, non-cola, and other non-cola carbonates will continue to show positive growth, while mixers and orange carbonates will continue to decrease at a constant value CAGR 3% and 2% respectively over the forecast period. Given the new launch of various flavours including chocolate flavour by Haitai Beverage Co Ltd as the brand expansion of Sunny Ten and tomato and aloe flavour by Woongjin Food Co Ltd in 2010, carbonates category is expected to see more activity on this front over the forecast period. Content removed from sample

53 presence of private label products is expected to bring down average unit prices over the forecast period. CATEGORY DATA Table 1 % total volume Low Calorie Carbonates by Subsector Cola carbonates store checks, trade interviews Table 2 Off-trade Sales of Carbonates by Category: Volume million litres Cola Carbonates - Regular Cola Carbonates - Low Calorie Cola Carbonates Non-Cola Carbonates - Lemonade/Lime - Mixers - Orange Carbonates - Other Non-Cola Carbonates Carbonates Table 3 Off-trade Sales of Carbonates by Category: Value Won billion Cola Carbonates - Regular Cola Carbonates - Low Calorie Cola Carbonates Non-Cola Carbonates - Lemonade/Lime - Mixers - Orange Carbonates - Other Non-Cola Carbonates Carbonates Table 4 Off-trade Sales of Carbonates by Category: % Volume Growth

54 % volume growth Cola Carbonates - Regular Cola Carbonates - Low Calorie Cola Carbonates Non-Cola Carbonates - Lemonade/Lime - Mixers - Orange Carbonates - Other Non-Cola Carbonates Carbonates 2009/ CAGR 2005/10 TOTAL Table 5 Off-trade Sales of Carbonates by Category: % Value Growth % current value growth Cola Carbonates - Regular Cola Carbonates - Low Calorie Cola Carbonates Non-Cola Carbonates - Lemonade/Lime - Mixers - Orange Carbonates - Other Non-Cola Carbonates Carbonates 2009/ CAGR 2005/10 TOTAL Table 6 On-trade vs Off-trade Sales of Carbonates: Volume million litres OFF-trade ON-trade Total Table 7 On-trade vs Off-trade Sales of Carbonates: Value Won billion OFF-trade ON-trade Total

55 Table 8 On-trade vs Off-trade Sales of Carbonates: % Volume Growth % volume growth OFF-trade ON-trade Total 2009/ CAGR 2005/10 TOTAL Table 9 On-trade vs Off-trade Sales of Carbonates: % Value Growth % current value growth OFF-trade ON-trade Total 2009/ CAGR 2005/10 TOTAL Table 10 % volume Off-trade Sales of Low Calorie Cola Carbonates by Category: % Volume Breakdown Low Calorie Cola Carbonates -- Standard Low Calorie Cola -- Speciality Low Calorie Cola Table 11 Company Shares of Carbonates by Off-trade Volume % off-trade volume Company Total

56 Table 12 Brand Shares of Carbonates by Off-trade Volume % off-trade volume Brand Company Others Total Table 13 Company Shares of Carbonates by Off-trade Value % off-trade value rsp Company Total

57 Table 14 Brand Shares of Carbonates by Off-trade Value % off-trade value rsp Brand Company Total Table 15 Forecast Off-trade Sales of Carbonates by Category: Volume million litres Cola Carbonates - Regular Cola Carbonates - Low Calorie Cola Carbonates

58 Non-Cola Carbonates - Lemonade/Lime - Mixers - Orange Carbonates - Other Non-Cola Carbonates Carbonates Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 16 Forecast Off-trade Sales of Carbonates by Category: Value Won billion Cola Carbonates - Regular Cola Carbonates - Low Calorie Cola Carbonates Non-Cola Carbonates - Lemonade/Lime - Mixers - Orange Carbonates - Other Non-Cola Carbonates Carbonates Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 17 Forecast Off-trade Sales of Carbonates by Category: % Volume Growth % volume growth Cola Carbonates - Regular Cola Carbonates - Low Calorie Cola Carbonates Non-Cola Carbonates - Lemonade/Lime - Mixers - Orange Carbonates - Other Non-Cola Carbonates Carbonates 2014/ CAGR 2010/15 TOTAL Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 18 Forecast Off-trade Sales of Carbonates by Category: % Value Growth % constant value growth Cola Carbonates - Regular Cola Carbonates CAGR 2010/15 TOTAL

59 - Low Calorie Cola Carbonates Non-Cola Carbonates - Lemonade/Lime - Mixers - Orange Carbonates - Other Non-Cola Carbonates Carbonates Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

60 CONCENTRATES IN SOUTH KOREA - CATEGORY ANALYSIS HEADLINES Concentrates sees off-trade value sales grow by 8% in 2010 to reach Won57 billion Powder concentrates with reduced sugar and low calorie content are popular under the health and wellness trend Liquid concentrates registers the fastest sales growth in 2010, rising by 8% in off-trade value terms, while off-trade value sales of powder concentrates increase by 4% The average unit price increases by 3% in 2010, mainly due to the launch of new premium products While Unilever Korea Co Ltd dominates powder concentrates with a 73% value share, the competitive landscape of the concentrates category as a whole is highly fragmented in 2010 Over the forecast period, the liquid concentrates category is expected to grow at a CAGR of 3% in constant off-trade value terms TRENDS Concentrates showed healthy growth in 2010 in both powder and liquid concentrates, with an overall rise of 8% in off-trade value sales. Liquid concentrates showed faster growth than powder concentrates. With increasing concerns about health, consumers enjoyed liquid concentrates as nutritional supplements. Grape, balloon flower roots and plum concentrates were perceived as nutritional supplements for health instead of drinks by consumers; most of these products are available in liquid format rather than powder in South Korea. These products are produced from diverse provinces, with some brands only distributed in certain regions. Therefore, players remained fragmented in liquid concentrates, with the category seeing a rise of 4% in RTD volume terms. Powder concentrates saw increased RTD volume sales despite the fact that most South Korean consumers were wary of drinking powder concentrates due to their high calorie and sugar content. However, manufacturers introduced new health-positioned powder concentrates with less sugar and without artificial colouring; these new products attracted consumers in For example, Dongsuh Foods Co Ltd launched a new powder concentrate ice tea brand called Tio, whose reduced sugar content was achieved by adding oligosaccharides and xilitol. The company also emphasised that it did not use artificial colouring in this brand. It aims to challenge the domination of Unilever Korea Co Ltd within the powder concentrates category with its wellness-concept brand. In the response, however, Unilever Korea Co Ltd launched an apple-flavoured powder concentrate. Following these new product developments, powder concentrates showed slightly better total volume growth in 2010 than in 2009, rising by 2%. With the continuing popularity of vinegar concentrates, known for their invigorating and antiageing effects among older people, liquid concentrates continued to register healthy 4% total RTD volume growth in Although manufacturers are not undertaking aggressive marketing promotions, more South Korean consumers became aware of the health benefits of vinegar drinks and liquid concentrates continued to register a good performance in 2010.