Korean beer company takes initiative in preventing desertification in key export country

ULAAN BATOR -- Landlocked between Russia and China, Mongolia is a country of plains, horse riding and nomadic heritage. This homeland of Genghis Khan also happens to be the largest importer of Cass, the signature product of South Korea’s largest beer manufacturer Oriental Brewery Company.

As part of its effort to integrate more closely into the local community, OB decided to pitch into a key Mongolian issue -- desertification -- by promoting an extensive forestation project, namely the Cass Forest of Hope.

“Since starting business in Mongolia back in 1999, OBC has kept a close eye on the desertification issue, which would affect not only Mongolia but also Korea and the entire Asia eventually,” said Kim Do-hun, or Frederico Freire, CEO of OBC.

His speech was delivered on Tuesday in Tuv Aimag Erdene Sum, a semi-desert plain area located 50 kilometers east of the nation’s capital Ulaan Bator. It was here that OBC, jointly with environmental NGO Green Asia, celebrated the Land for Life Award from the United Nations Convention to Combat Desertification.

The Cass Forest of Hope was initiated in 2010, under a long-term goal to build a windbreak belt in the region by planting 150,000 trees by 2020. So far, 30,000 have been planted, one-third of which are reported to have survived and grown.

“In proportion to Mongolia’s urbanization, we have been observing an increasing level of desertification in the close vicinities of our capital city,” said Bat Erdene, vice mayor of Ulaan Bator.

“The Cass forestation project is a sustainable, extensive model that should be expanded to other desertification cases around the world.”

But the largest challenge is the barren soil and dry climate of the inland country.

“In order to nurture the planted trees into an actual living forest, we will continuously have to input resources, such as funding and volunteers,” said Kim Dae-jong, OBC’s overseas business director.

“Such dedication also proves that OBC is determined to maintain and further improve the business relationship that is has been built in Mongolia for the past 16 years.”

Cass, which is positioned as a premium imported product in Mongolia, was also the first and only beer brand for years after its launch in 1999.

“The success of Cass created a beer consumer market here and later led to the creation of various local brands such as Sengur and Borigo,” said Dambajarjaa Enkhbat, CEO of Cass Town.

But the market expansion and consequent competition also pressured OBC.

“We see the recent changes as the introduction of new business opportunities, not so much as a threat to our achievements so far,” said the CEO.

“Cass already has a firm foothold in the Mongolian market and its sales will rebound once external factors such as foreign exchange rates are improved.“

Considering the Mongolian consumers’ preference for hard liquor such as vodka, OBC placed focus on Cass Red, a special edition of the brand with an alcohol-by-volume level of 6.9 percent, compared to the traditional brand’s 4.5 percent. It also developed a thermo-transportation system as to protect beer from extreme temperatures, officials explained.

By Bae Hyun-jung (tellme@heraldcorp.com)
Korea Herald correspondent