Manila: A combination of the Korean Wave and expanded local sales networks has driven sales growth at Hitejinro Philippines Inc. in recent years, the company said at a recent media event. Hitejinro Co., South Korea's leading beverage company, established its Philippine subsidiary in July 2019 to strengthen its presence in the Southeast Asian country, where its soju products have been sold for 35 years. Sales have been rising due to growing demand for soju, a traditional Korean liquor made primarily with ethanol and water, among local consumers, particularly young Filipinos influenced by Korean pop culture.
According to Yonhap News Agency, Hitejinro President Kim In-kyu highlighted the shift in the Philippine soju market dynamics during a press event in Manila. He stated that the market, which initially relied on the South Korean expatriate community, now sees young Filipinos as the primary purchasing force. Kim described this trend as a "very positive sign" for the company to expand in a market traditionally dominated by brandy, rum, and gin.
An increasing number of local consumers are choosing soju over those traditionally popular liquors in the Philippines to make a cocktail with juice or Yakult. Helped by such a trend, Hitejinro expects to post double-digit sales growth in the Philippines in 2025 for a second consecutive year, also boosted by broader distribution partnerships.
The company works with two major local partners -- K and L Jinro Inc. and Premier Wine and Spirits Inc. (PWSI). Through these partnerships, its soju products are now available at 7-Eleven and Uncle John's convenience stores, Puregold supermarkets, and K and R membership-only stores nationwide. Securing sales networks is essential for global beverage companies in the Philippines, an archipelago of 7,107 islands with a population of 119 million.
Kang Jung-hee, CEO of K and L Jinro, noted the influence of Korean dramas during the COVID-19 pandemic, where many Filipinos became familiar with the Jinro brand through scenes depicting characters drinking soju with samgyupsal (grilled pork belly). She added that consumers in remote areas without access to major retailers are now ordering Jinro soju via bus delivery services. K and L Jinro operates five logistics centers with a total area of 5,000 square meters, exclusively handling Hitejinro's soju products.
The partnership with PWSI has also played a key role in deepening market penetration, as PWSI's parent company, Cosco Group, is a major conglomerate with operations in grocery retail, real estate, banking, and liquor distribution. PWSI delivers Jinro soju to 4,400 7-Eleven convenience stores nationwide, as well as 700 Puregold supermarkets and 31 K and R stores. Puregold and K and R are also part of Cosco Group.
Kim expressed confidence in the growing local appetite for soju, stating that it will accelerate Hitejinro's goal to cement its leading presence in the Philippines and use it as a strategic base for entering other Southeast Asian markets. The Philippines ranked eighth globally in per capita alcohol consumption in 2024, following Japan, according to the World Health Organization (WHO).
Market intelligence firm GourmetPro valued the Philippine spirits market at over US$10 billion in 2024, with an expected annual growth rate of 3.4 percent over the next five years. Robin Derrick C. Chua, managing director of PWSI, remarked on the market's robust size, reflecting strong demand across spirit categories, supported by economic recovery, rising disposable incomes, and growing interest in premium and imported brands. Nearly 62 percent of the Philippine population is of legal drinking age -- 18 years and older -- he said, adding that the cheapest bottle of Jinro soju sells for about $2 in the country.
While local soju brands, such as So Nice and Chingu Soju, are available, they typically offer only fruit-flavored versions and are generally viewed as less competitive in quality and variety compared to Hitejinro. Hitejinro, which celebrated its 100th anniversary last year, began its global soju expansion in 2016. It exports soju and beer products to 80 countries, with 17 of them regarded as strategic markets that include Japan, China, the U.S., Vietnam, and the Philippines.
The company generates about 10 percent of its total revenue from overseas shipments of soju, beer, and other liquors, with soju accounting for 85 percent of its exports. Hitejinro said the Philippine market will play a key role in its goal of achieving 500 billion won ($365 million) in overseas soju sales by 2030. Its soju exports totaled 153 billion won last year. All soju products are currently produced in South Korea, though the company is building its first overseas plant in Vietnam.
Internationally, Hitejinro markets soju under the Jinro brand. In South Korea, both the Chamisul and Jinro brands are available. Its beer brands -- Hite and Terra -- are also sold globally. The global soju market is expected to grow from 4.2 trillion won ($3.08 billion) in 2024 to 5.6 trillion won by 2030, according to Exactitude Consultancy.