Namyang sees big increase in overseas sales of Chupa Chups drink

Namyang Dairy Products is strengthening its presence in the overseas business-to-business (B2B) market through carbonated beverages. The famous lollipop brand "Chupa Chups" was transformed into a carbonated beverage and exported to Russia and Europe. In the first half of the year, the "Mentos" carbonated beverage will also be launched.

According to food industry sources on Tuesday, Namyang Dairy Products signed a licensing agreement with Italian-Dutch confectionery company Perfetti Van Melle and plans to introduce the Mentos carbonated drink in the first half of this year. Perfetti Van Melle is a company that owns well-known brands such as Mentos, Chupa Chups, and Fruittella.

Carbonated drinks based on candy flavors are unfamiliar to Korean taste buds, but they have established themselves early on as Namyang Dairy's hidden sales generators. It was reported that Perfetti Van Melle first proposed the idea of commercializing Chupa Chups into a drink to Namyang Dairy.

After signing a licensing agreement with the European confectionery maker in 2017, Namyang Dairy introduced the Chupa Chups drink. In 2018, the company started exporting it in earnest. Currently, Chupa Chups carbonated drinks are exported to 30 countries across the world, including the United States, Europe, Asia, and Latin America.

Namyang Dairy Products plans to expand its overseas market presence by taking advantage of the global brand power of Chupa Chups. Even though candy-flavored beverages still account for only 1.5% of Namyang Dairy's total sales, it sees this business as the main force for expanding overseas markets.

Exports of Chupa Chups beverages showed a rapid pace of increase, with 13 million cans (250 ml per can) in 2019, 43 million cans in 2020, and 62 million cans in 2021.

Write to Kyeong-je Han at hankyung@hankyung.com