Lotte Chilsung’s First-Half Wine Sales Rise 2.8%

Wine sales of South Korea’s drinks giant, Lotte Chilsung, rebounded in the second quarter, making it the company’s second-fastest-growing alcohol category in the first half of 2026.

Wine sales rose 8.8% year on year in the April-to-June period, reversing a 2.3% decline in the first quarter. That made wine Lotte Chilsung’s second-fastest-growing alcohol category in the first half of 2026, behind only ready-to-drink beverages.

The turnaround came as South Korea’s wider wine market began to stabilise after a post-pandemic correction. National wine imports rose 1.71% by value to US$214.8 million in the first six months of the year, even as import volumes declined, as we have reported.

Alcohol Operating Profit Jumps 156.6% in Second Quarter

According to Lotte Chilsung’s second-quarter report, the company generated first-half sales of KRW 2.07 trillion (approximately US$1.49 billion), up 3.4% year on year.

Operating profit increased 18.5% to KRW 106.3 billion (US$76.6 million), while net profit rose 61.4% to KRW 53.5 billion (US$38.6 million).

Both the beverage and alcohol divisions recorded higher profits, supporting the group’s overall performance.

The alcohol business generated first-half sales of KRW 389.3 billion (US$280 million), up 1.9%. Operating profit increased 34.5% to KRW 23 billion (US$16.6 million).

In the second quarter alone, operating profit from the alcohol business surged 156.6% year on year, marking a substantial improvement in profitability.

Lotte Chilsung said weak domestic consumption, elevated exchange rates and rising raw-material and logistics costs placed pressure on the profitability of its beverage business. However, carbonated drinks, coffee and sports beverages continued to record steady growth, while profitability in the alcohol division improved.

The company said it would continue pursuing operational improvements focused on strengthening profitability.

Second-Quarter Wine Sales Rise 8.8%

In line with the group’s broader performance, Lotte Chilsung’s wine business returned to growth during the first half of 2026.

Wine sales reached KRW 38.9 billion (US$28 million), an increase of 2.8% from the same period last year. The growth rate was second only to ready-to-drink products among the company’s alcohol categories.

The improvement was driven primarily by the second quarter. Wine sales fell 2.3% year on year during the first quarter but rebounded by 8.8% in the following three months, pushing first-half growth back into positive territory.

The recovery suggests that Lotte Chilsung’s wine business is gradually benefiting from improving consumer demand.

Its performance also mirrors a modest recovery in South Korea’s wider wine import market. As Vino Joy News previously reported, the country’s wine imports increased 1.71% by value during the first half of 2026 to US$214.8 million, indicating that demand is beginning to stabilise.

Mass-Market Wine Remains a Strategic Priority

Founded in 1950 as Chilsung Cider, Lotte Chilsung is one of South Korea’s largest integrated beverage companies. Over more than seven decades, it has expanded into soft drinks, bottled water, coffee, juice and alcoholic beverages.

Wine is an important component of its alcohol portfolio.

Its Majuang label, launched in 1977, is one of South Korea’s oldest wine brands. In addition to domestically produced wines, the range includes imported products such as Majuang Cabernet Sauvignon, Majuang Mosel, Majuang Médoc and Majuang Chardonnay, covering prominent regions including Germany’s Mosel and France’s Médoc, as well as major international grape varieties.

Beyond Majuang, Lotte Chilsung distributes several international wine brands. According to company information, its imported portfolio includes Australian brand Yellow Tail, French Champagne Pommery and Louis M. Martini from the United States.

Yellow Tail is one of Lotte Chilsung’s most important imported wine brands in South Korea. It entered the market in 2005 and had surpassed cumulative sales of 10 million bottles by the end of 2022, making it one of the country’s most influential Australian wine brands.

After expanding rapidly during the pandemic, South Korea’s wine market underwent a period of correction and is now entering a more mature stage.

Consumers are moving away from pandemic-era home stockpiling as wine becomes more integrated into everyday drinking. Distribution is also expanding beyond restaurants into hypermarkets, supermarkets, convenience stores and other retail channels.

That shift is creating new opportunities for accessible wine brands with strong retail distribution.

Against this backdrop, Lotte Chilsung continued to focus on brand upgrades and the mass-consumer market during the first half of 2026.

Its Chilean wine brand L Wine underwent its first comprehensive revamp in a decade. In February, the company introduced a new logo and packaging while retaining its three core wines: Cabernet Sauvignon, Merlot and Chardonnay. The younger brand identity is intended to attract a new generation of consumers.

Since its launch in late 2015, L Wine has sold more than 4.5 million bottles, making it an important part of Lotte Chilsung’s imported wine business.

Public information positions L Wine as an affordable, value-oriented imported table wine sold primarily to mass-market consumers through Lotte Group’s retail channels.

RTD Sales Surge 111.7% as Beer and Spirits Struggle

Ready-to-drink products were Lotte Chilsung’s fastest-growing alcohol category during the first half. Sales more than doubled to KRW 17.1 billion (US$12.3 million), an increase of 111.7%.

Soju and cheongju, or Korean refined rice wine, also recorded growth and remain central to the company’s domestic alcohol business.

Soju sales increased 2.2% to KRW 179.4 billion (US$129 million), retaining its position as the company’s largest alcohol category. Cheongju sales rose 2.8% to KRW 45 billion (US$32.4 million).

Beer and spirits continued to struggle.

First-half beer sales fell 29.5% to KRW 18.8 billion (US$13.6 million), while spirits declined 11.8% to KRW 8.2 billion (US$5.9 million).

Wine and RTDs were therefore Lotte Chilsung’s two fastest-growing alcohol categories, while beer and spirits – both closely associated with South Korea’s traditional workplace drinking culture – continued to decline.

The divergence reflects a broader change in drinking habits, as consumers move away from conventional group occasions towards drinking at home, lower-alcohol choices and a wider variety of consumption settings.

Lotte Chilsung has responded by repositioning traditional soju through fruit flavours, lower-alcohol products and younger packaging, seeking to create new drinking occasions and attract younger consumers.

At the same time, the modest growth of cheongju indicates that Korean consumers are not abandoning traditional alcohol altogether. Rather, demand is being redistributed among different products and occasions.