NEWS
REPORTS: NORTH KOREA PREPARING TO EXPORT SOJU & BEER PRODUCTS TO RUSSIA
By Siulan Law Mathews DipWSET
13-1-2025
Source: Koreanfoodgallery.com
Russian news media reported that North Korea has filed trade mark registration for its Soju products in Moscow signalling that the country is preparing to export the products to the Russian market.
Filed by Naegohyang, a company linked to the North Korean military, the application covers a total of four categories, namely alcohol, kimchi, bread and tobacco products.
The Russian business daily RBC reported that the application related to alcoholic category does not include beers.
Yet, NK News, an English-language media outlet focused on North Korea, reported that the Taedonggang Brewery, a North Korean beer maker, registered its brand in Russia last August, but its beer has yet to appear in the market.
This could mark the first alcohol application by a North Korean company in Russia, according to Andrei Lankov, a professor of Korean studies at Kookmin University in Seoul.
Some are speculating that Pyongyang seeks to commercialise its goods and expand into overseas markets as part of broader efforts to deepen ties with Moscow.
North Korea's entry into the Russian liquor market could give rise to competition with South Korean companies, whose Soju products have entered the Russian market more than a decade ago.
But industry sources in South Korea are confident that the entry of North Korean Sojus will not pose strong competition in Russia because to the big difference in style.
“It seems unlikely that North Korean Sojus will lead to direct competition, as their high alcohol content of over 40 percent positions them as competitors to other hard liquors like whisky,” said an South Korean industry official.
North Korean Soju, known for its traditional style and high alcohol content exceeding 30 percent, differs significantly from its South Korean counterparts.
South Korean commercial Soju typically contains 15 to 20 percent alcohol, with flavoured varieties having less than 15 percent.
South Korea's top Soju maker, HiteJinro, established its Russian subsidiary, Hitejinro Rus, in 2013 to expand its footprint in the Russian liquor market.
The Russian arm has since showed a strong upward trajectory, achieving an average annual growth of 76 percent from 2017 to 2020. Russia is one of 17 countries the firm has chosen as a strategic focus for its expansion plans.
However, Russia remains a tough market especially in recent years, with the ongoing war limiting marketing activities in the region.
(the writer can be contacted at: info@thewinechronicle.com)
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