Manila: Hitejinro Co., a leading South Korean beverage company, is on a promising path to achieve double-digit sales growth in the Philippines this year, fueled by the increasing demand for its soju products. The company is working to make soju an integral part of everyday life for local consumers in the Southeast Asian nation, according to a company executive.
According to Yonhap News Agency, Hitejinro first introduced soju to the Philippines 35 years ago through local distributor K and L Jinro Inc. In 2019, the company expanded its presence by establishing a subsidiary, Hitejinro Philippines Inc. Initially popular within the South Korean expatriate community, soju has recently gained traction among young Filipinos in their 20s and 30s, influenced by the rising popularity of Korean cultural content.
Kook Dong-kyun, president of Hitejinro Philippines, highlighted the significant sales growth recorded last year and expressed optimism for the meaningful growth expected this year. Despite a 61 percent decline in the number of Korean residents in the Philippines from 88,000 in 2013 to 34,000 in 2023, soju exports have surged 3.5 times during the same period, indicating a shift in market dynamics, with local consumers becoming the primary customers.
The Overseas Koreans Agency reported that young Filipinos are increasingly purchasing both regular and fruit-flavored soju varieties, driven by local cocktail culture and the influence of the Korean Wave on social media. Fruit-flavored soju accounted for 61 percent of total soju shipments to the Philippines in 2021. However, by 2024, regular soju made up 68 percent, reflecting changing consumer preferences.
Hitejinro, which derives about 10 percent of its total sales from exports of soju, beer, and other liquors, finds that soju alone accounts for 85 percent of outbound shipments. While all soju products are currently manufactured in South Korea, the company is building its first overseas plant in Vietnam.
Internationally, Hitejinro markets its soju under the Jinro brand, while both Chamisul and Jinro brands are available in South Korea. Its beer brands, Hite and Terra, are also distributed globally. The company is strengthening its position in the Philippine liquor market through expanded partnerships with local companies.
K and L Jinro supplies Hitejinro's soju products to convenience stores and retailers catering to the Korean community in the Philippines. Additionally, in collaboration with Premier Wine and Spirits Inc. (PWSI), Hitejinro's soju products are sold at 700 Puregold supermarkets and 31 K and R membership-only stores. All these entities are affiliated with the Philippines' Cosco Group, which operates across various sectors, including grocery retail, real estate, banking, and liquor distribution.
PWSI projects that the Philippine spirits market, estimated at US$10 billion in 2024, will continue to grow, driven by economic recovery, rising disposable incomes, and increased interest in premium and imported brands. Kook emphasized the company's commitment to strengthening its localization strategy to become an integral part of everyday life in the Philippines and to position the Philippine subsidiary as a key driver in the global popularization of Jinro soju.