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HiteJinro taps Indian market with soju

Soju set to challenge whiskey, rum in South Asia

May 2, 2013 - 19:57 By Kim Yon-se
HiteJinro said Thursday that it will make inroads into India’s liquor market with its soju products next month.

Its advancement into the country reflects the liquor producer’s vision to penetrate fresh markets overseas such as Southeast Asia and South Asia and expand its presence in East Asia, company officials said.

“We embarked on the project of diversifying export destinations two years ago when Hite Brewery and Jinro merged,” said a spokesman.

HiteJinro recently signed a contract with Advent Brand House, an Indian importer of alcohol products, on distributing “Jinro24” in the market as early as June.

While ABH is scheduled to import the spirit for Jinro24, the diluting and bottling process will be carried out in factories in India.

As the first step, undiluted solutions totaling 21.600 liters for Jinro24 will be shipped to India this month.

The company has set the goal of exporting 18,000 boxes of soju (24 bottles, 375 milliliters each) to the country by the end of 2013.

It also plans to export other products including the flagship model Chamisul after contemplating growth potential in the market.

The issue is whether to attract consumers. HiteJinro should challenge whiskey and rum products that hold dominant shares of the entire liquor market in India.

“A growing portion of consumers have the appetite of products with smooth flavor and low alcohol content,” a spokesperson said. “Soju is similar to other competitors like vodka but is sweeter and less strong.”

He said its company has been much too complacent about its position for more than five years at home and abroad. “We are striving for synergy from the merger, and constant management innovation to leap forward to compete with global liquor makers.”

As for overseas sales including soju and beer, HiteJinro targets 800 billion won ($740 million) by 2015, nearly double last year’s 435.2 billion won.

To that aim, it has set out an “innovation” scheme for all units involving production, operation and management. With product quality as the top priority, it plans to carry out research and development in draft beer and adopt a new distribution system that keeps its drinks fresh.

Korea is the world’s 13th-largest consumer of alcoholic beverages and the top for distilled liquors.

Domestically, Korea’s two leading soju makers are facing off in full force to gain the upper hand.

HiteJinro and second-largest Lotte Chilsung have been engaged in fierce competition to boost their market share in Seoul and its adjacent areas.

Currently, HiteJinro’s flagship product Chamisul accounts for about half of Korea’s entire soju consumption, while Lotte Chilsung’s Cheoeumcheoreom takes up about 15 percent.

In Seoul, Incheon and Gyeonggi Province, Chamisul accounts for around 60 percent of the market, with the remaining 40 percent for Cheoeumcheoreom.

By Kim Yon-se (kys@heraldcorp.com)