Hite Jinro, an alcoholic drinks giant in South Korea, has made its latest push into the American premium wine sector by exclusively launching two Oregon wines in the local market.
On December 18, 2024, Hite Jinro announced the exclusive launch of Bethel Heights Vineyard and Shea Wine Cellar in the U.S. to the domestic market.
Both vineyards located in Oregon are renowned for producing Pinot Noir and Chardonnay. The move comes just a month after the company had become the exclusive distributor of Founding Brothers and Hora, two fine wines from another American winery, Cathyad Vineyard in Napa Valley for the Korean market.
Jinro was founded more than a century ago in 1924, primarily engaged in the manufacturing of soju—a traditional spirit native to the Korean Peninsula, made from distilled water, barley, sweet potatoes, and other grains, with an alcohol content ranging between 19.5% and 21.5% by volume.
As the leading soju brand in South Korea, Jinro has established an extensive distribution network, exporting the spirit to over 80 countries. In 2023, its soju sales reached 97.4 million cases (9 liters per case). According to Drinks International, Jinro has been the bestselling spirit in the world by volume for more than two decades.
In 2006, Jinro Group was acquired by Hite Brewery, South Korea’s largest beer brewer. Following the merger, the company was renamed Hite Jinro Group, and its product range expanded beyond Soju to include beer, sake, whisky, and more. In 2023, Hite Jinro’s annual revenue reached 2520.18 billion won (US$ 1.71 billion).
Hite Jinro began selling imported wines in 2015, offering a diverse selection that features wines from France, Italy, Spain, Germany, the U.S., Canada, Chile, Argentina, Australia, and New Zealand, totaling over 60 brands.
In 2022, Hite Jinro collaborated with the Italian winery Carlo Pellegrino to launch its first self-branded wine, Jinro Red Wine, priced at 30,000 won (US $20.50) in convenience stores.
Unlike its budget-friendly Soju, which retails for around US $5 per bottle internationally, Hite Jinro’s wine portfolio features many premium products, including Taittinger, Château Cheval Blanc, and a variety of high-end Burgundy wines. The recently added American wineries also offer premium bottles: Bethel Heights Vineyard offers wines priced between US $35 and US $95 per bottle, while Shea Wine Cellar’s wines range from US $40 to US $115.
Hite Jinro’s wine selection strategy differs from the previously reported trend among South Korean retailers, who tend to favor inexpensive wines priced under 10,000 won (US $7.06), reflecting the diversification of the South Korean wine market.
The exclusive distribution of several American wines by Hite Jinro in a short period illustrates South Korean companies’ strong interest in boutique American wines. Over the past three years, there have been successive acquisitions of American wineries by major South Korean businesses.
In 2023, Hanwha Group invested US $34 million to acquire Seven Stones Winery in Napa Valley, one year after Shinsegae Liquor & Beverage, South Korea’s largest wine importer, spent approximately US $250 million to purchase Shafer Vineyards in the same region.
American boutique wines, particularly from Napa Valley, Sonoma County, and Oregon, are prized for their bold fruity flavors and complexity. Additionally, regions like Sonoma and Oregon produce high-quality Pinot Noir.
During the COVID-19 pandemic, South Korea’s imports of American wine saw a significant increase. The import value climbed by 61.83% in 2021 compared to 2020, reaching US $90.66 million, and peaked at US $102 million in 2022.
However, in 2023, the import value of American wines fell by 20% to US $82.07 million. These fluctuations reflected the overall trends in South Korea’s wine imports, which experienced a rise from 2021 to 2022 followed by a downturn in 2023.
Despite the challenges, Hite Jinro’s recent addition of American boutique wines in 2024 highlights the company’s bullish bet on premium wines amid the challenging conditions in the wine market.
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