As the domestic liquor market faces a harsh winter amid a social trend of reducing alcohol consumption and prioritizing health, HiteJinro is launching an offensive with new products, drawing attention as it seeks a breakthrough for performance recovery.
According to industry sources on the 20th, HiteJinro's alcohol-free and low-calorie new product 'Terra Zero Can,' launched in March, had sold over 9.8 million cans as of that day. The product gained significant popularity, surpassing 40 thousand won cans within 100 days of launch. At the time, it sold an average of about 40,000 cans per day, or one can every 2.2 seconds, becoming a hot topic by exceeding the shortest sales record of 40 thousand won cans among domestic alcohol-free beverages.
Building on this popularity, 'Terra Zero Bottle,' launched at the end of June, has sold over 2 million bottles to date. It gained traction with its initial shipment of 900,000 bottles selling out within just 10 days of launch. By adding 'Terra Zero' to the already established 'Hite Zero 0.00' (annual sales of 20.8 billion won last year), HiteJinro is further solidifying its two-track strategy capturing both household and entertainment channel alcohol-free markets.
HiteJinro is focusing heavily on alcohol-free products because the performance of its alcoholic products has been notably weak. In the second quarter this year, HiteJinro saw a significant deterioration in beer performance, navigating through a 'lean period.' Sales reached 176.3 billion won, down 15.3% from the same period last year, while operating profit fell to 8.3 billion won, a 29.2% decrease. Soju managed to hold its ground thanks to exports. Soju sales were 382.7 billion won, up 0.1% from the same period last year, and operating profit rose to 58.2 billion won, an 18.4% increase.
HiteJinro believes that if it does not actively respond to changing drinking culture and consumer patterns, its performance will worsen further, so it is exploring new opportunities. Beyond the Zero LINE-up, it has expanded consumer choices to include slushy draft beer and fruit sparkling wine, diversifying its product portfolio to align with evolving drinking trends.
'Terra Slushy Draft' is a prime example. It offers a unique drinking experience by presenting Terra draft beer in slushy form. Its key feature is maintaining a refreshing drinking sensation for up to approximately 60 minutes using ice foam at minus 7 degrees Celsius. First unveiled at the 'Magok MCT Festival' in June, it quickly sold out its prepared stock, confirming consumer interest. It was also showcased at the 'Hongcheon River Starlight Music Beer Festival' held from the 5-9 in Hongcheon, Gangwon Province, where it sold well. This summer, it has gained popularity not only in major resort areas like Busan and Sokcho but also at outdoor festivals and key commercial districts nationwide.
Product diversity is being further strengthened. An example is the seasonal limited fruit sparkling wine 'Terra Sparkling,' launched earlier this month, which combines Terra's strong carbonation image with the freshness of fruits. It consists of three varieties based on Spanish white wine: tomato, lemon, and watermelon. The tomato variety highlights fresh acidity and subtle sweetness, while the lemon emphasizes refreshing acidity and strong carbonation. The watermelon delivers its characteristic sweet and lively flavor profile. Alcohol content is 4.6 degrees for tomato and watermelon, and 7 degrees for lemon.
A HiteJinro representative stated, "Recently, liquor consumers are applying increasingly diverse selection criteria, including calorie and alcohol burden, drinking locations and situations, new flavors, and experiences," adding, "We plan to improve performance in the second half through new products that closely reflect market changes and consumer needs."
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