"HiteJinro, Serious About Carbonated Alcohol, Leading Market Expansion with 'Purincut'"

Expecting New Demand Creation with Health-Conscious New Product

HiteJinro Sparkling Alcoholic Beverage 'Filite Purine Cut'

HiteJinro, the leading company in the domestic sparkling beer market, has expanded its lineup for the first time this year to maintain its lead and expand the market.

According to the industry on the 13th, sales of sparkling beer at a major supermarket last year increased by 8.6% compared to the previous year. This figure is higher than the growth rate of beer sales (1.4%) during the same period.

The company explained that the increase in sparkling beer purchases was mainly driven by consumers seeking cost-effectiveness. Sparkling beer is classified as other alcoholic beverages under the liquor tax law, as it contains less than 10% malt content. While the tax rate on beer is 72%, the tax rate on other alcoholic beverages is relatively low at 30%, allowing sparkling beer to be sold at a lower price than beer due to the lower tax rate.

However, the company is cautious about expanding the share of sparkling beer on beer shelves, as more consumers prioritize taste over price. A company representative said, “So far, more consumers prioritize taste when choosing beer,” adding, “We will monitor customer reactions and trends more closely before responding to the expansion of sparkling beer.”

In fact, recent sparkling beer sales have been sluggish. Last year, sales of HiteJinro’s ‘Filite’ increased by 0.4% compared to the previous year due to the transition to endemic. Considering that the overall production capacity (CAPA) of the liquor market decreased during the prolonged COVID-19 pandemic in 2021, resulting in a 2.5% decline compared to the previous year, this is an encouraging result. However, it is a disappointing performance compared to the explosive growth expected in the sparkling beer market when it was launched in 2017.

Amid growing market skepticism, HiteJinro is aiming to maintain its lead and expand the market by broadening its lineup. Recently, HiteJinro launched ‘Filite Purine Cut,’ a sparkling beer with significantly reduced purine content, in line with the recent health-conscious trend. The new product reduces purine content, known to cause gout, to 2mg per 355ml can, which is 90% lower than the existing Filite Fresh.

HiteJinro plans to create new market demand through the new product that alleviates health concerns. A HiteJinro official said, “With the launch of Purine Cut, we expect to create new market demand centered on consumers looking for diverse products.” He added, “The recent overall recovery of the liquor market is also a factor that raises expectations for the growth of the sparkling beer market, which has price competitiveness.”

OB Beer also plans to achieve both growth in the overall sparkling beer market and an increase in market share by expanding its lineup from the existing ‘Filgood’ products to the sparkling beer ‘OMG’ launched last year. In December last year, OB Beer expanded the nationwide launch of a premium sparkling beer made with brown rice, barley, and rye to create a savory flavor. After a pilot launch in July last year, it gained popularity among consumers and expanded its sales channels nationwide. An OB Beer official said, “We plan to target the MZ generation (Millennials + Generation Z) through marketing that actively utilizes the Lalabear and Filgoo characters.”