CJ CheilJedang 'Michyo' Leads "Fruit Vinegar Syndrome" in Japan Centered on Black Vinegar
From 5 Billion KRW in 2015 to 86 Billion KRW Last Year, 17-Fold Growth
Sales Nearly Double Compared to Last Year Until May This Year
Fruit Fermented Vinegar Storm Leads Paradigm Shift in Japanese Drinking Vinegar Market
[Asia Economy Reporter Lee Seon-ae] CJ CheilJedang’s ‘Micho,’ a leading brand of ‘K-beauty beverages,’ is showing explosive sales growth in Japan. Based on this, it is driving not only market growth but also a paradigm shift, sparking a fruit fermented vinegar craze in Japan, the home country of vinegar.
CJ CheilJedang announced on the 11th that ‘Micho’ recorded sales of approximately 86 billion KRW (based on local consumer prices) in Japan last year. Compared to sales of about 5 billion KRW in 2015, this represents more than a 17-fold increase in just four years. This year, sales have nearly doubled compared to the previous year through May, continuing its rapid growth.
The brand is also driving market growth. Until now, most drinking vinegar products emphasized health, so they were considered exclusive to middle-aged and older consumers, and the market remained stagnant for years as young consumers ignored them. However, ‘Micho’ has been recognized by female consumers in their 20s and 30s as a ‘K-beauty’ beverage that is not only healthy but also delicious and good for beauty, growing the market by an average of 8% annually over the past four years.
It is even leading a paradigm shift in the market. The Japanese drinking vinegar market, which was dominated by black vinegar fermented from brown rice, is now embracing fruit fermented vinegar as the mainstream due to ‘Micho’s popularity. In fact, Mizkan, the market leader, unusually launched five fruit fermented vinegar products in February, demonstrating that local companies are paying attention to ‘Micho’s competitiveness.
These achievements of ‘Micho’ were driven by strategic expansion of distribution channels. CJ CheilJedang first entered Costco, where tasting events are easy to hold, to introduce the unique features of fruit fermented vinegar to Japanese consumers unfamiliar with it. As awareness grew, distribution channels expanded to drugstores and imported food specialty stores, mainly frequented by the main target group of ‘Micho,’ women in their 20s and 30s.
Leveraging the advantage that it can be mixed with water, milk, or carbonated water to create various beverages, ‘Micho’ also entered cafes. In fact, the cafe ‘Squeu’ located in Ginza selected ‘Micho’ drinks as a regular menu item after test sales and is selling them successfully. Recently, it has also been introduced into traditional distribution channels such as large supermarkets and retail stores, continuously expanding sales routes.
The lineup diversification strategy also contributed to the success. Initially launched with only a pomegranate product, it expanded to seven types reflecting Japanese consumer preferences and tastes, including calamansi, pineapple, green grape, peach, strawberry jasmine, and green apple. In April last year, ‘Micho Strawberry Jasmine’ RTD (Ready To Drink) product, which can be consumed without dilution, was also introduced.
CJ CheilJedang plans to intensify marketing activities to expand sales as the peak season for drinking vinegar approaches in summer. First, they will run TV commercials featuring popular model and actress ‘Matsui Airi.’ The focus will be on highlighting the unique features of ‘Micho,’ such as being a fruit fermented vinegar made by naturally fermenting only fruit juice, and being healthy yet delicious to enjoy.
Additionally, they will continuously conduct promotions such as tasting events across various distribution channels and plan to launch various new products within the year to broaden consumer choices. They also plan aggressive marketing activities, including partnering with Gongcha, which has over 60 stores in Japan, to develop and introduce menus using ‘Micho,’ aiming to establish ‘Micho’ as the mainstream in the drinking vinegar market.
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Lim Kyung-il, head of CJ CheilJedang’s Japan branch, said, “‘Micho’ is recognized as a trend in terms of emotional and cultural aspects of Japanese consumers, leading the revitalization of the entire drinking vinegar market,” and emphasized, “We will not be complacent with current achievements but will strive further to nurture ‘Micho’ as a global representative fruit fermented vinegar brand.”
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