HiteJinro's 'Refreshing Soju' Continues

Operating Profit Expected to Explode 106% This Year
TejinA Storm... Rapid Market Share Expansion

[Asia Economy Reporter Park Jihwan] Hite Jinro is solidifying its dominant position in the alcoholic beverage market. While competitors struggled due to market contraction caused by the spread of the novel coronavirus (COVID-19), strong sales of new products have allowed Hite Jinro to achieve both increased market share and improved profitability.

According to financial information firm FnGuide on the 18th, Hite Jinro's consolidated sales for this year are expected to reach 2.2887 trillion KRW, a 12.46% increase compared to last year. In particular, operating profit is projected to show explosive growth during the same period. It is estimated to post an operating profit of 182.4 billion KRW, up 106.80% from last year.

Within the alcoholic beverage sector, Hite Jinro's performance overwhelms its competitors. For example, competitor Lotte Chilsung's sales this year are expected to decline by 1.71% year-on-year to 2.388 trillion KRW. Securities firms forecast Lotte Chilsung's operating profit this year to fall by 7.89% to 99.2 billion KRW during the same period.

Hite Jinro's growth is largely driven by the beer "Terra" and soju "Jinro Is Back," which have created a sensation and rapidly expanded market share. The bomb cocktail "Tejina," a mix of Terra and Jinro Is Back, has captured consumers' tastes and increased customer loyalty.

Terra's monthly sales last month reached about 3 million cases. Compared to the first quarter's monthly sales of around 2 million cases, this represents an explosive increase of over 1 million cases in a short period. Jinro has also maintained monthly sales of about 1.2 million cases since the beginning of this year. Hite Jinro's soju market share, led by Chamisul and Jinro, is estimated to have recently risen to the mid-60% range.

Hite Jinro's dominance is also reflected in its stock price. On the 12th, Hite Jinro's stock price closed at 40,200 KRW, reclaiming the 40,000 KRW mark for the first time in 10 years and 5 months since January 2010. The stock price, which was around 20,000 KRW in June last year, has more than doubled in just one year. This month, it has risen 17.36% as of the previous day, outperforming competitors such as Lotte Chilsung (9.18%).

Han Yujeong, a researcher at Daishin Securities, said, "The peak season beer market this year seems less likely to experience the cutthroat competition seen in the past," adding, "The boycott of Japanese products, which has caused a decline in beer imports, will also be an opportunity for Hite Jinro."

This content was produced with the assistance of AI translation services.