Philippines Enjoys Samgyeopsal with Chamisul… 'Jinro Popularization' Success

【Financial News Manila (Philippines) = Lee Hwan-ju Reporter】 "Moving away from a market centered on expatriates, Jinro can now be found in all channels in the Philippines such as convenience stores and supermarkets. Particularly, unlike the past, the general soju market share in the Philippines has surpassed fruit soju, achieving soju popularization."

Kim In-kyu, CEO of HiteJinro, revealed the growth vision of global Jinro at the 101st anniversary media conference held in Manila, Philippines on the 18th (local time).

The Philippines, with a population of 118 million, is the 14th most populous country in the world. It is a young country with over 30% of the population under 15 and 65% in the working-age group of 15-64. The median age is 24.5, significantly lower than the OECD average (39.9) and Korea (43.4). This indicates a large potential for K-soju growth due to the high number of alcohol consumers.

CEO Kim emphasized, "HiteJinro's competitor is neither OB Beer nor Lotte," stating, "HiteJinro is not just selling alcohol but selling time and space to people worldwide, connecting people and creating culture."

Currently, the Philippines ranks 8th in Asia for per capita alcohol consumption. Filipino alcohol consumption is approximately 74% beer, 25% spirits, and 1% wine, with beer being dominant. According to the Korea Customs Service, the global soju export volume is expected to reach 200 million dollars (270 billion won) by 2024. The market share of K-soju exports to the Philippines is about 3.5%, approximately 10 billion won. HiteJinro currently holds a dominant 67% market share in the Philippine soju market.

Kuk Dong-kyun, head of HiteJinro's Philippine branch, explained, "In the past, soju was mixed like a cocktail, but now, like in Korea, general soju consumption has surpassed fruit soju consumption."

In 2021, fruit soju accounted for 61% of total sales in the Philippines, but last year, general soju reached 68%. The culture of eating Korean food such as samgyeopsal and kimchi stew while drinking general soju has begun to infiltrate.

The branch manager cited the success factors of soju in the Philippine market as △a premium image different from local alcohol △the Korean Wave △social media.

The branch manager said, "In the Philippines, like in Korea, there is a culture of toasting and 'one-shot' called 'Tagay'," adding, "People drink with many others (social ritual), drink cocktails at home (Timplado), eat with food (Pulutan), and enjoy karaoke culture (Videoke)."

Just as Buldak Bokkeum Myun changed the landscape of the ramen industry, HiteJinro is preparing for a new 100 years with 'Chamisul' and 'Jinro'. Last year, in celebration of its 100th anniversary, HiteJinro began establishing its first overseas factory in Hanoi, Vietnam. The groundbreaking ceremony was held on February 5th this year, with local production targeted to start next year. HiteJinro's soju export revenue increased steadily from 65.3 billion won in 2020 to 116.9 billion won in 2022, and 153.4 billion won last year. The proportion of overseas sales in HiteJinro's total revenue also grew to 11%. Previously, HiteJinro set a goal of achieving '500 billion won in overseas sales by 2030'.

CEO Kim stated, "The domestic liquor market is stagnating with a growth rate of around 1%," adding, "We will promote K-soju in the global liquor market along with the Korean Wave."


hwlee@fnnews.com