NEWS
WORLD’S MOST CONSUMED SPIRIT S. KOREA’S JINRO SOJU ON GLOBALISATION PUSH
By Susan Lewis
26-5-2022
Source: Hitejinro Co.
The South Korean owner of the world’s best selling spirits brand, Jinro Soju, is planning a global push of the brand eyeing a double-digit growth in export this year with special focus on Japan, China and the USA.
With sales of 95.3 million 9-litre case in 2020, Jinro Soju is by far the most consumed alcoholic drink brand in the world, leaving a big gap with no.2 White Claw Hard Seltzer with sales of 58.5m 9-litre case.
In a recent interview with Yonhap News Agency, Hitejinro Co., owner of the Jinro Soju brand and South Korea's leading beverage company, detailed a promotion plan to turn Jinro into a global brand more in tune with its world no.1 sales status.
Currently, the domestic market accounts for 90 percent of Hitejinro’s total sales, only 10 percent is exported to foreign markets and composed of Soju, Korean rice wine makgeolli and other liquors. Soju accounts for 80 percent of the exports.
The company's Soju exports jumped 36 percent last year to USD102 million from USD75 million a year earlier.
With increasing interests in Korean food and culture worldwide, the company is targeting strong growth in Soju Jinro's export with its globalisation strategy.
"To achieve the growth target, we will focus on increasing the ratio of consumption by non-Korean residents in our 14 strategic Soju markets, including the three majors Japan, China and the United States," Managing Director Hwang Jung-ho in charge of Hitejinro's overseas business said in a recent interview with Yonhap News Agency.
The other strategic markets are Britain, Russia, Australia, Vietnam, Singapore, Malaysia, Indonesia, Cambodia, Thailand, Hong Kong and the Philippines.
Koreans residing overseas have been the main customers of Soju, but things have changed in recent years, helped by localised promotions and increased sales networks.
The ratio of consumption by non-Koreans in the 14 markets surged to 78 percent last year from 31 percent in 2016. The ratio was 69 percent in 2020.
"We aim to raise the ratio to 90 percent by 2024 under the two-track strategy aimed at strengthening its presence in the three major markets and making a presence in rapidly growing Southeast Asian markets," Hwang said.
The company plans to strengthen sports marketing in the USA, like the Los Angeles Dodgers sponsorship, and promotions through social media, such as Weibo in China, while running YouTube and television ads in Japan.
The company sees further room to grow in China as Soju can be purchased from online stores, which is not allowed in most other markets at the moment.
Southeast Asia has emerged as a vital market for Hitejinro's growth since the company introduced its Soju products under the Jinro brand in Vietnam in 2016. Demand for Jinro Soju and different flavoured varieties is on the rise in the region.
Jinro Soju's alcohol by volume reached 35 percent in 1924, but it gradually declined to 17.8 percent in 2016 and 16.5 percent in 2022 to suit the taste of the younger generation.
VHitejinro's Soju products are sold under the flagship Jinro brand overseas, while two Soju brands, Chamisul and Jinro, are sold domestically. Its beer products are available globally under the brands of Hite and Terra.
(the writer can be contacted at: info@thewinechronicle.com)
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