NEWS
HYUNDAI TO COMPETE WITH SHINSEGAE & LOTTE IN S. KOREA'S PREMIUM WINE SEGMENT
By Susan Lewis
24-10-2022
Source: Hyundai Department Store Group
South Korea’s third largest department store group, Hyundai, has set up a new subsidiary specialising in wine imports and distribution in order to compete with the other two leading retailers, Shinsegae and Lotte, in fine wine retails in the home market.
Called Vino H, the Korea Bizwire reported that Hyundai’s new wine subsidiary will explore organic premium wines overseas and import them exclusively to the domestic market, to meet the rapidly growing demands for premium wines in South Korea.
Vino H has reportedly brought about 100 different labels of wines from about 10 wineries in France and Italy so far, and is planning to expand the portfolio to 300 in the future.
Hyundai's entry into the premium wine segment set to further intensify competition in the market place where the biggest two retailers, Lotte and Shinsegae, are already fiercely fighting for market share.
South Korea’s leading retailer Shinsegae Group acquired Shafer Vineyards, a winery in Napa Valley, California in February this year.
Six months later in August, Shafer Vineyards acquired 46 hectares of vineyards from cult wine maker Screaming Eagle.
On the other hand, Lotte Department Store group has reportedly hired a string of professional sommeliers recently to source premium wines from around the world.
Instead of sticking to low and mid-priced wines that previously served as a mainstay, Lotte was said to be aiming at pushing the share of premium wines up to 40 percent.
The strategy seemed to have paid off with wine sales revenue in Lotte expanded by more than 20 percent in September.
Apart from big department stores, Shinsegae also owns E-mart convenience stores and the “Wine and More” outlets while Lotte also owns the 7-Eleven chain in South Korea.
(the writer can be contacted at: info@thewinechronicle.com)
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