Soju Market's 'Zero Sugar' Trend... 'Saero' Storm Met with 'Jinro' Renewal
Soju Also Gains Popularity with 'Zero Sugar'
Lotte Chilsung's Chum Churum 'Saero' Continues Hit
HiteJinro Renews 'Jinro' Zero Sugar
Reflecting Healthy Cleanser Trend... Market Share Competition Increases
[Asia Economy Reporter Song Seung-yoon] The "Zero Sugar" soju, which contains no high-fructose corn syrup, is gaining huge popularity among young consumers, intensifying competition in the zero sugar soju market. Lotte Chilsung Beverage's zero sugar soju "Cheoeumcheoreom Saero," launched last September, has created a sensation in the market, and with HiteJinro, the number one player in the soju industry, entering as a latecomer, a fierce battle for market share is expected.
HiteJinro announced on the 27th that starting January 9 next year, it will renew its Jinro soju product line with a zero sugar concept. The renewed zero sugar concept products are characterized by maintaining the original taste of Jinro through HiteJinro's unique brewing technology without using any sugars. Reflecting consumer needs, the alcohol content has been lowered to 16 degrees to enhance a clean and smooth finish. Calories have also been reduced to 320 kcal. While there are almost no changes to the packaging, a zero sugar mark has been added to the lower left of the label, along with calorie information.
Since its launch in April 2019, Jinro has sold about 1.4 billion bottles to date. This year, cumulative sales through November increased by about 5% compared to the same period last year. As health-conscious consumer trends have taken root in the soju market, HiteJinro chose a strategy of renewing existing products that have already settled in the market rather than launching new products. Accordingly, the existing Jinro products will be distributed only as zero sugar products going forward.
The zero sugar craze was first sparked by Lotte Chilsung Beverage's Saero. Saero sold about 14 million bottles within two months of its launch and reached cumulative sales of 27 million bottles as of last month. Saero is characterized by a refreshing and smooth taste, and to preserve the unique flavor of soju, distilled soju was added. Its attractive packaging, featuring a transparent bottle shaped with the curves of pottery and water droplets, also gained word-of-mouth popularity, becoming a hot topic among the MZ generation (Millennials + Generation Z). Marketing efforts are also being intensified through the representative character "Saerogumi," borrowed from the nine-tailed fox (Gumiho).
Lotte Chilsung Beverage, New Beginning with Cheoeum Cheoreom.
Photo by Lotte Chilsung Beverage
With HiteJinro, the number one player in the soju industry, entering the zero sugar soju market, a full-scale competition for market share is expected to ignite. Lotte Chilsung Beverage is focusing Saero's marketing on the home and entertainment markets, aiming to turn it into a 100 billion KRW brand next year. HiteJinro also plans to solidify its market share in a 2-on-2 battle, with Chamisul and Jinro competing against Cheoeumcheoreom and Saero, respectively. In the soju market, estimated at 3 trillion KRW, Chamisul and Jinro hold a combined market share in the 60% range. Earlier, Muhak Good Day also entered the zero sugar soju market early by launching the industry's first product without added high-fructose corn syrup in 2019.
The zero sugar craze in the soju market is interpreted as a reflection of the "Healthy Pleasure" trend, which has continued due to the prolonged COVID-19 pandemic. It is also related to the growing popularity of low-alcohol beverages among young consumers. As the number of "home drinking" consumers increases, the drinking culture has shifted from excessive drinking to enjoying smooth and tasty alcohol.
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An industry insider said, "The main consumers of alcoholic beverages, the MZ generation, prefer smooth and clean-tasting drinks and are characterized by their focus on health management," adding, "Accordingly, the zero sugar craze and the popularity of low-alcohol beverages are expected to continue for some time."
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