South Koreancosmetics giant AmorePacific will send tea brand Osulloc out on its own. The move to spin off their Jeju Island based premium teabrand is part of AmorePacific’s efforts to lift Osulloc’s image, and comes asKorea sees a revival in its tea industry.
Osulloc, which is South Korea’s biggest national tea brand, will begin independent operations on Oct. 1.
Osulloc isknown for crafting a brand image based on the pristine rustic nature of Jeju Island,the Korean vacationer’s counterpart to Hawaii. The island has captured theKorean imagination as a bastion of natural, organic living far removed from themainland’s pollution and over population. Osulloc grows their award-winninggreen and black teas exclusively on the island, linking their product to theisland’s image while also luring style savvy tourists to its tea fields to takein the scenery. Clever package designs have captured the essence of JejuIsland’s rolling hills and rustic coast, while ingredients like Halla Mountainoranges keep products relevant to modern tastes.
The decisionto spin off Osulloc is another move to ensure the brand’s image continues torise.
"Osullocwill solidify its brand as a leading premium tea brand through efficient andresponsible management," Suh Heok-jae, CEO of Osulloc, said in a pressrelease.
AmorePacific'slate founder Suh Sung-whan started the green tea business in 1979, the image ofthe brand and the island have risen in tandem ever since. Osulloc has wonseveral awards in and outside the country and operates the country's largestgreen tea museum on the island.
Koreanculture has an unrivaled history of fermentation practices (hence the fame ofkimchi), a trait Osulloc uses in their teas to signal quality and uniqueness,boosting their image among Korean buyers and abroad. Aging their teas in thenatural environment of Jeju deepens the taste and aroma of their tea, thecompany claims.
The decisionto further safeguard Osulloc’s image comes as Korea faces a possible turnaroundin its tea industry. For the past decade, tea has seen its popularity slide ascoffee reigned as the peninsula’s most popular drink. Baristas were elevated, whiletea sommeliers worried for their futures.
But anoversaturation in the coffee industry has pushed consumers towards more teaconsumption. Coffee imports fell last year for the first time in more than fiveyears, from 146,000 metric tons in 2017 to 143,000 tons in 2018, according tothe Korea Customs Service. Cafés have been stocking their menus with more teaoptions, aiming for younger customers with fruity blended teas.
Jeju Islandis also uniquely positioned to benefit from an upswing in tea consumption.Starbucks has listed Jeju organic green tea on its Korean menus, tapping intothe country’s fascination with the island as a haven of natural food and asource of healthy organic ingredients. Other cafés are enlisting fruityingredients in their blended teas to keep in step with a younger consumer basethat prefers sweeter flavors. As Jeju Island’s largest tea producer, and with along tradition of infusing natural fruit ingredients into their teas, Osulloccould be ready to ride an oncoming wave to higher sales and greater brandrecognition. The recent spin off aims to lift that image even higher.
Source:AmorePacific