Binggrae's Banana Flavored Milk Enjoys a Boost from the Jensen Huang Effect

The Jensen Huang Effect: Convenience Store Sales Up 14.5%
Annual Sales Expected to Reach 260 Billion Won, Cumulative Sales Near 9.9 Billion Bottles

Unexpected fortune has come to Binggrae after Jensen Huang, CEO of Nvidia, was spotted holding a bottle of Banana Flavored Milk.

According to the convenience store industry on November 6, sales of Binggrae's Banana Flavored Milk at CU stores increased by 14.5% from October 31 to November 3 compared to the same period in the previous month. Consumer interest surged after it became known that CEO Jensen Huang handed out Banana Flavored Milk to citizens during a "chimaek meeting" with Samsung Electronics Chairman Lee Jae-yong and Hyundai Motor Group Chairman Chung Euisun on October 30.

Banana Flavored Milk Unsweetened. Provided by Binggrae.

Binggrae is actively leveraging this moment in its marketing. On October 31, the company posted an event poster on its official social network service (SNS) with the phrase, "We will row while the tide is high. Giving away 100 bottles of Banana Flavored Milk. Thank you, Mr. Huang." The words "gethson" and "Huang" were highlighted in yellow, cleverly parodying CEO Jensen Huang.

With this unexpected boost, Binggrae expects increased sales of Banana Flavored Milk this year. According to the securities industry, cumulative sales of Banana Flavored Milk exceeded 200 billion won as of September this year, and are projected to surpass 260 billion won by the end of the year. This represents a 4% increase from the previous year’s 250 billion won. Banana Flavored Milk accounts for 20% of Binggrae’s total sales, making it a flagship product. Average daily sales reach 1 million bottles, with cumulative sales approaching 9.9 billion bottles.

Overseas sales are also steadily increasing. According to DS Investment & Securities, Binggrae’s export ratio on a standalone basis expanded from 8% in 2020 to 10% in 2023, and is expected to reach 13% this year. Of this, China accounts for 30%, serving as a key pillar of overseas performance.

The overseas expansion of Banana Flavored Milk began in the United States in 2004. In 2008, Binggrae entered the Chinese market. At that time, even plain milk was not yet widely popular in China. There was skepticism internally about the market potential, but Binggrae took a bold approach, aiming to "create a market where none existed."

Initially, the jar-shaped product, which required refrigeration, was sold in small quantities mainly at department stores. Later, the company launched a sterilized pack with a six-month shelf life, expanding its distribution network. The first delivery was only 50 boxes, but within a month, it increased to 1,000 boxes, receiving a positive response. Binggrae then expanded its sales network to major cities such as Shanghai, Beijing, and Qingdao, establishing itself as the representative Korean processed milk brand.

Currently, Banana Flavored Milk is sold in about 30 countries, including the United States, China, Taiwan, Hong Kong, Vietnam, the Philippines, Malaysia, and Canada. Although distribution in mainland China was temporarily suspended due to COVID-19, it has been recovering since the lifting of quarantine measures.

A Binggrae representative said, "With the spread of K-food and the Korean Wave, trust in Korean processed milk has increased," adding, "We will continue to expand overseas sales with products tailored to local tastes and trends."

Launched in 1974, Banana Flavored Milk celebrates its 51st anniversary this year. At the time, the government was promoting milk consumption, but there was significant resistance to plain milk. Binggrae found a breakthrough by introducing processed milk with bananas, which were considered a luxury fruit. The unique container, known as the "jar-shaped milk bottle," has been key to the brand's success. While glass bottles and vinyl packs were the norm, Binggrae developed its own polystyrene container modeled after a moon jar. The bottle features a lip at the opening to prevent spills and uses a translucent material to highlight the banana color. More than just packaging, it has become a symbol of the brand, and the container is trademarked, with Binggrae holding the exclusive manufacturing technology. Currently, Banana Flavored Milk holds an 80% share of the domestic banana milk market and has established itself as a beloved product across generations.

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