Managing Director Hwang Jung-ho in charge of Hitejinro’s overseas business at the company’s headquarters in southern Seoul (Image courtesy of Yonhap)
SEOUL, Dec. 17 (Korea Bizwire) — Hitejinro Co., South Korea’s leading beverage company, will consider building additional overseas plants or acquiring a local company for further expansion after fully establishing its first overseas plant in Vietnam, a company executive said Tuesday.
Hitejinro’s US$77 million soju manufacturing plant is under construction at the Green-i-Park industrial complex in Vietnam’s Thai Binh province, with a goal to start production in late 2026. Soju is Korean distilled rice liquor.
“We will initially focus on fostering the Vietnam plant into a manufacturing base for the Southeast Asian region. And then we will consider overseas plant expansion or mergers and acquisitions (M&As) based on a thorough analysis of targeted markets and local demands,” Managing Director Hwang Jung-ho in charge of Hitejinro’s overseas business told Yonhap News Agency in a written interview.
In particular, Hitejinro said it “ultimately” aims to build production facilities in the United States and Europe to strengthen its presence in the global beverage market.
Currently, Hitejinro earns about 10 percent of its total sales from exports of soju, beer and other liquors. Soju accounts for 85 percent of its exports.
The company’s soju exports exceeded 140 billion won (US$97 million) last year, more than doubling from $44 million in 2016 when it announced its goal of globalizing soju.
In the January-September period, soju shipments rose 6.9 percent on-year to 100.6 billion won, according to the company.
“The company is aiming to achieve 500 billion won worth of overseas soju sales in 2030 by seeking quantitative growth in Southeast Asia and exploring new markets in Europe and Latin America,” Hwang said.
To achieve the goal, the company will make stepped-up efforts to raise the ratio of consumption by non-Korean residents in its 17 strategic soju markets, including three majors — Japan, China and the U.S., he added.
Koreans residing overseas have long been the main customers of soju, but consumption by non-Koreans is on the rise helped by localized promotions and increased sales networks.
The ratio of consumption by non-Koreans in 12 previous strategic markets jumped to 81 percent in 2022 from 31 percent in 2016.
The company has said it aims to raise the ratio to 90 percent this year under a two-track strategy that focuses on the three majors and the rapidly growing Southeast Asian market.
The global soju market is expected to reach 5.6 trillion won in 2030, up from 4.2 trillion won last year, according to market research firm Exactitude Consultancy.
(Yonhap)
