Dong-A Otsuka recorded a huge profit three years in a row thanks to the enormous popularity of the Oronamin C beverage and the revival of Pocarisweat.
Analysts have credited President Yang Dong-young for the company’s success, whose business knowhow is said to have contributed to the company’s enviable achievements since his arrival in 2015.
The beverage industry sources said on Feb. 20 that Dong-A Otsuka complied 280.9 billion won in sales in 2017, up 7 percent year-on-year, surpassing the previous year’s record three years in a row.
The company’s annual sales only hovered around 210 billion won until 2014. But the company began to break out from 2015 onwards, recording 231.1 billion won in sales the following year and t rising to 280.9 billion won last year.
If the trend continues this year, the company will have no trouble boosting its sales to more than 300 billion won, rising 10 percent on average over the past three years.
The company’s profit is also on the rise. Operating profit jumped to 4.9 billion won in 2015, erasing a 200 million won deficit in 2014. The sale of Oronamin C has the job for the company since 2015 when the beverage was first introduced. Pocarisweat, which is in its 31st this year, has been able to recover its rapid pace of its sales of late, too.
Oronamin C surprised the market when it logged 10 billion won in sales in the initial year on the market in 2015. Sales continued to rise thereafter, posting 20 billion won in 2016 and 30 billion won in 2017.
Pocariseat also began to rise in popularity among women. President Yang has been given credit for the outstanding sales figures compiled by the two beverages since his arrival in 2015.
The CEO is a veteran marketing man with stints as head of the Daejeon branch for Dong-A Pharmaceutical. He was in charge of Bacchus sales, one of the best known beverages in Korea, before he was invited to take charge of Dong-A Otsuka as the CEO.
He joined Dong-A Otsuka as the head of marketing in 2015 and focused on boosting sales of Oronamin C first. He first reorganized the marketing dep’t and then diversified the distribution network.
He then took charge of Pocarisweat sales, detailing sales targets by customers based on the projection that more women would take up sports in their leisure times, thus increasing demand for sporting drinks. Under his watch, the company sponsored a bike race for female middle school students last year. This year, the company will sponsor the Net Ball Championship for women.
Yang was promoted to CEO in 2016 in recognition of his outstanding job in turning the company around.
Dong-A Otsuka is projected to log 300 billion won in sales this year.
Oronamin C drink whose sales went very well last year to lead the boosts in the company’s overall sales.