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Korea Herald
27-05-2025
- Business
- Korea Herald
Soju in Philippines: HiteJinro's blueprint for Southeast Asia
Soju's cultural resonance is key to popularizing the brand in Southeast Asian markets, says HiteJinro CEO MANILA, Philippines — In a spirited bid to spread Korean liquor culture across Southeast Asia, South Korea's leading soju maker, HiteJinro, has fixed its sights on the Philippines. Since establishing its local subsidiary in 2019, HiteJinro has orchestrated a sweeping market strategy, bringing its soju brand, Jinro, to a point where it now commands 67 percent of the Philippine soju market. It is from this tropical crossroads that the company's localization strategy is poised to spill over into neighboring countries across the region. 'From a market initially dependent on Korean expatriates and Korean restaurants, we've now achieved remarkable growth across various segments of the local market,' said CEO Kim In-kyu during a press conference in Manila in May. Beneath Jinro's dominant share lies Kim's guiding philosophy: a cultural integration where Korean food and soju have become integral elements in Filipino drinking culture. The company is not just selling alcohol, according to Kim, but creating a platform where consumers can connect with the Jinro brand — one that represents the spirit of South Korea. Seen through this lens, the real competition transcends rival liquor brands. 'Our competitors are not other liquor companies, but travel, sports and cultural content, Netflix, for instance — any experience that vies for consumers' time and attention,' Kim continued. Local collaborations, brand campaigns A variety of factors, including tailored products, diverse retail networks, and the magnetic pull of K-content, has fueled the company's push to boost soju's cultural significance. For one, local partnerships have been key to increasing the availability of soju. Collaborations with import-focused distributors such as Premier Wine & Spirits and retail giants like SM Group, Puregold and 7-Eleven have expanded the brand's reach across the market. 'Jinro is easily accessible for consumers wherever they are, even beyond Metro Manila,' said an official from PWS. 'This widespread availability reflects a growing demand among Filipino consumers eager to experience Korean culture.' Another set of tactics comes alive in marketing initiatives, from sponsoring K-pop events to partnering with local Korean barbecue chains like Samgyupsalamat and Romantic Baboy. Angela Torrejos, project manager at Anything K-POP, a K-pop content party organizer, observed, 'Jinro has become more than just a drink. It has become part of a shared experience, resonating with the global K-pop wave. Opportunities abound — from concerts and festivals to fan meets and K-alcohol nights — where Jinro amplifies the sense of community.' HiteJinro has also tapped into the Philippines' vibrant cafe culture by using soju as a base for coffee cocktails, exemplified by its partnership with the popular coffee chain But First, Coffee, last year. Driving forward new trends These efforts have now borne fruit, with more local Filipinos seeking out the Korean spirit. Despite a 61 percent drop in the local Korean population, from around 88,000 in 2013 to 34,000 in 2023, HiteJinro's soju sales in the Philippines have more than tripled, soaring at an annual growth rate of 41.7 percent between 2022 and 2024. Consumer preferences speak volumes as they lean into more regular soju. While fruit-flavored soju — such as straberry, lemon and peach — accounted for about 61 percent of sales in 2021, regular soju's share took up 68 percent of sales last year, signaling a deeper cultural connection with Korea's drinking traditions. For years to come, HiteJinro remains intent on sustaining its trajectory of double-digit growth. Last year, HiteJinro unveiled its vision of achieving 500 billion won ($366 million) in overseas soju sales by 2030 — a seven-year goal to reach 2.6 times its previous year's sales of 189.1 billion won. 'HiteJinro aims to foster demand among local consumers, casting soju as more competitive than brandy — a spirit that has traditionally held sway here,' said Kook Dong-kyun, head of HiteJinro Philippines. 'Beyond at-home consumption, our goal is to expand Jinro's presence into local bars and entertainment venues.' The company's Vietnam plant, slated to begin operations in 2027, is set to become a cornerstone of this broader regional strategy, serving as both a production hub and a logistics center. While pouring resources into marketing and navigating rising costs, the company must also contend with local competitors. "With Jinro already securing a dominant distribution network, local low-cost soju brands would struggle to enter the market based solely on pricing strategies," Kim said. After all, success hinges on consumers choosing Jinro not for its price, but for their affinity with the brand itself, he added.
Korea Herald
06-02-2025
- Business
- Korea Herald
HiteJinro breaks ground on first overseas soju plant in Vietnam
HiteJinro announced Thursday that it has officially kicked off construction of its first overseas soju production facility at the Green i-Park industrial complex in Thai Binh province, Vietnam. The new plant is expected to serve as a key manufacturing and distribution hub for the global market, while also acting as a strategic base for expanding the reach of its Jinro brand. The groundbreaking ceremony on Wednesday was attended by some 160 guests, including HiteJinro CEO Kim In-kyu, HiteJinro overseas business Executive Vice President Hwang Jeong-ho and Jeong Seong-hoon, head of Jinro Soju's Vietnam branch. Vietnamese government officials, including Secretary of the Thai Binh Provincial Party Committee Nguyen Khac Than and Thai Binh Provincial Gov. Nguyen Manh Hung, were also present at the event. "Vietnam was the first market for our overseas soju exports, so breaking ground on our inaugural international production facility here is highly meaningful," said CEO Kim. "This plant will act as a strategic gateway for expanding our presence in global markets, particularly in Southeast Asia. It also represents a crucial milestone in our journey toward becoming a global comprehensive liquor company." HiteJinro's Vietnam facility will be an advanced smart factory integrating cutting-edge technology across a site covering 82,083 square meters, an area roughly 11 times the size of a soccer field. The plant is slated for completion by 2026 and is projected to produce up to 5 million cases annually. Last year, in celebration of its 100th anniversary, HiteJinro introduced its Global Vision 2030 initiative in Vietnam, positioning the country as a key base to strengthen Jinro's competitive edge and establish it as a globally recognized brand in the international liquor market.
