Hitejinro continues global push for soju popularity

Industry

Published: 18 Jun. 2024, 18:55 Updated: 18 Jun. 2024, 19:34

Hitejinro continues global push for soju popularity

Hwang Jung-ho, the overseas president of Hitejinro, presents the company's Global Vision for 2030 at a press conference held in Hanoi, Vietnam on June 9. [SEO JI-EUN]

HANOI, Vietnam — Hitejinro, Korea's largest liquor company, will bring its soju products, from the original Chamisul to its fruit-flavored versions, to a broader range of countries as it seeks to establish the Korean alcoholic drink as a staple that can be enjoyed casually at any time.

The company set a target of 500 billion won ($361.5 million) in overseas soju sales by 2030, 2.6 times last year's figure. To reach this milestone, Hitejinro will expand its product offerings, distribution channels and consumer communication in key target countries such as Japan, China and the United States. The company also plans to establish its first overseas factory to secure export volumes.

Hitejinro's goals for overseas soju sales and revenue [YOO YOUNG-RAE]

Celebrating its 100th anniversary this year, the company announced the vision and the new slogan, "The Popularization of Jinro," at a press conference in Hanoi on June 9. Vietnam, the country Hitejinro first exported soju to in 1968, has been chosen as the location for its first overseas soju factory.

"When asked, 'What is soju?' [by foreigners], explaining it as 'Korean vodka' used to be the quickest way to get them to understand, but now, it seems six or seven out of 10 people already know what it is," said Hwang Jung-ho, overseas president of Hitejinro, during the press conference.

"In 2016, we declared the globalization of soju, aiming to reach local consumers rather than just expatriates," Hwang said. "Today, only 20 percent of soju drinkers abroad are expatriates or tourists; over 80 percent are locals. Our Global Vision 2030 aims to go beyond globalization to achieve popularization."

Since Hitejinro embarked on the globalization of the drink from 2017 to 2022, global sales have increased an average of 2.5 times annually, boosted by the prevalence of the green soju bottle in K-content. The company's flagship brand Jinro has been the No. 1-selling spirit globally since 2001, according to Drinks International, and soju is now exported to over 80 countries globally.

With the new vision, Hitejinro intends to elevate its core brands like Chamisul and Jinro to central positions in the global liquor market, making soju as familiar and accessible as beer. The new global tagline, "Easy to drink, drink to link," highlights the company’s plan to position soju as a popular beverage category akin to beer, instead of more formal, epicureal drinks like wine, whiskey or champagne.

"In Korea, 'Let's have a glass of soju' carries many meanings — to get closer with colleagues, to celebrate, to console or just to communicate," said Hwang. "We aim to make Jinro a brand that connects people globally in the same easy, enjoyable way."

Hitejinro outlined mid- and long-term strategies for its overseas business, including achieving 500 billion won in sales, having more than 90 percent of its soju sales by locals, and over 500 million bottles of soju sold annually.

Shelves are stocked with Hitejinro's soju products in a Fuji Mart in Hanoi, Vietnam. [SEO JI-EUN]

Fruit soju is central to achieving these goals. Hitejinro aims to attract foreign consumers to traditional soju by first lowering the entry barrier with the fruit-flavored varieties. While regular soju is popular in Korea, the version with a lower alcohol content and more familiar flavoring continues to grow abroad. Hitejinro intends to expand its offerings by developing and introducing new fruit-flavored products to its current lineup, which includes grapefruit, green grape, peach, plum and strawberry, specifically for foreign customers. The latter three are currently available exclusively in overseas markets.

"We believe that introducing fruit soju, which has flavors that locals can easily picture, is an effective initial strategy," said Hwang.

Alongside a strengthened product portfolio, the company will diversify its export destinations, focusing on high-growth markets. The number of "strategic countries", where annual soju exports exceed 50,000 bottles has increased, from eight in 2017 — including Japan, China and the United States — to 17, including Russia, Australia, Germany, Mexico and Taiwan. In existing markets, Hitejinro plans to expand its distribution from large supermarkets and convenience stores to the entertainment sector like bars, which has grown significantly post-pandemic.

The company will also enhance consumer engagement through diverse content, targeting trend-sensitive Millenials and Gen Zers. This includes sponsoring sports events, participating in country-specific festivals and launching collaborations. Hitejinro has participated in concerts in Thai Binh Province, Vietnam, and the All Points East music festival in Britain. It has partnered with the Los Angeles Dodgers since 2012, featuring advertisements at home games and releasing limited edition products, and recently signed a contract with the New York Red Bulls as well as for the 2026 World Cup.

"Currently, we are focusing on localizing for consumers who have no prior experience with soju," said Hwang. "We aim to popularize Jinro with products and content that resonate with local consumers globally."

After 100 years in operation, the company plans to build its first overseas soju factory in Vietnam. The factory, set to be completed in Thai Binh Province's Green i-Park industrial complex by 2026, will have an initial production target of 1 million cases annually, accounting for about 17 percent of the 2024 overseas soju sales target.

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