Hitejinro hops on new beer trend as sales of Kelly overflow

Industry

Published: 25 Jul. 2023, 17:40 Updated: 25 Jul. 2023, 19:22

Hitejinro hops on new beer trend as sales of Kelly overflow

The production process of Kelly beers at Hitejinro's Gangwon Brewery [SEO JI-EUN]

HONGCHEON, Gangwon — Under the scorching summer sun of July 19 as temperatures inside the car reach 38 degrees Celsius (100 degrees Fahrenheit), the Gangwon brewery of Korean liquor company Hitejinro is alive with the sound of clanging beer bottles gliding on conveyor belts, ready to provide some much-needed refreshment.

After a two-hour car journey from Seoul, visitors can witness the entire brewing process unfolding before their eyes — from the washing and filling of bottles to the final labeling and packaging. Hitejinro's Gangwon Brewery stands as Korea's largest beer factory with an annual production capacity of 500,000 kiloliters (132 million gallons).

On one side of the brewery, the production focuses on Hitejinro's prized "Terra" brand, which is encased in green bottles.

In tandem, on the other side emerges "Kelly", housed in unique amber-colored bottles. Hitejinro wishes to reclaim its throne in the domestic beer industry with Kelly as the company approaches its landmark 100th anniversary in 2024.

Kelly made its debut in April, four years after the release of Terra in March 2019. According to data compiled by large retail stores like Emart and Lotte Mart, the new beer brand's market share in domestic beer sales has reached around 49.6 percent. This figure marks a rise of around 7 percent from March, already surpassing OB beer's market share in large retail stores, according to Hitejinro.

Within just 36 days of its release, Kelly sold one million boxes, securing its place as the fastest-selling beer brand in Korea. The momentum continued to surge, with two million boxes sold in 66 days and three million boxes in 90 days, demonstrating a sales pace approximately 1.5 times faster than its competitors.

Kelly sets itself apart by introducing the amber hue to beer bottles and embracing Danish barley, a rare ingredient in the domestic market, defying the preferences of many Korean drinkers who favor the fusion of beer and soju, known as "somaek."

Conventionally, beer comprises malt, hops, water and yeast. The most common type of Korean beer, the American Light Lager, reduces malt proportion to 70 percent and incorporates other starches like corn and rice, emphasizing a clean and refreshing taste. Popular beer brands in Korea like Cass and Hanmac from Oriental Brewery, and Hite from Hitejinro, along with American lagers like Budweiser and Miller, follow this approach.

In contrast, all-malt beer like Kelly uses 100 percent malt, avoiding the amalgamation of other starches to accentuate its distinct flavor. Traditional Korean lagers have faced criticism for their lackluster taste and excessive carbonation, creating the perfect stage for an all-malt lager with its rich, unadulterated essence of barley.

Kelly's production line at Hitejinro's Gangwon Brewery [HITEJINRO]

Kelly employs a "slow germination" method, extending germination for an additional 24 hours compared to regular approaches.

"The role of yeast in the fermentation process is crucial, and after conducting several tests, we discovered the optimal temperature to keep the yeast in its best condition during beer maturation," explained Kim Tae-young, team leader at the Alcoholic Beverages Research Team of Hitejinro.

"In addition to the ‘slow germination' method, we ensured a smooth initial taste by first maturing the beer at 7 degrees Celsius and removing bitterness and off-flavors," Kim said. "Then, during the second fermentation at minus 1.5 degrees Celsius, we introduced robust carbonation, maximizing the lager’s inherent intensity and refreshing qualities."

The recent surge in the popularity of Kelly breathed new life into the Hitejinro Gangwon Brewery.

"The remarkable popularity of Kelly is evident even on the production lines," said Jung Eui-min, manager of the Quality Control Team at Hitejinro. "Presently, Terra continues to maintain [its production volume], and with the introduction of Kelly, we could feel an increase in the production volume. The management of both brands makes it even more challenging than peak seasons."

Plastic boxes filled with Kelly beer bottles, left, and Terra bottles are stocked at the outdoor storage area of Hitejinro's Gangwon Brewery. [SEO JI-EUN]

The excitement for Hitejinro's latest beer release, coupled with its unique bottle color and retro design targeted at the younger generation, has enabled Kelly’s rapid early sales.

The operational rate of the Gangwon Brewery — how close to maximum production output it is operating at — for the January-March period stood at 56.4 percent, as per disclosed data. The company attributed this relatively lower rate to the off-season for beer, explaining that during the third quarter of the previous year, the rate reached a more robust 68.3 percent.

The Gangwon brewery boasts a daily average production capacity of 60,000 bottles per hour or 1,000 bottles per minute, adhering to the 500-milliliter standard. With a total of 108 storage tanks in place, the brewery ensures a seamless supply of beer. Each tank holds 60,000 liters (15,850 gallons), an amount equivalent to a single adult consuming 10 bottles a day for 330 years.

As the grand finale of the brewery tour, the "Hitepia" tour hall offers visitors the opportunity to savor freshly brewed beer while taking in the scenic views of the Hongcheon River and Mount Dodun.

At Hitejinro's Gangwon Brewery, visitors have the opportunity to sample freshly brewed Kelly accompanied by snacks. [SEO JI-EUN]

While Kelly's popularity thrives in the domestic market, Hitejinro currently holds back on export plans.

"We are focusing on nurturing the domestic market while keeping a close eye on opportunities for beer exports to other countries," a Hitejinro spokesperson said.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]