HiteJinro's Ambitious Project Ahead of 100th Anniversary
New Beer 'Banjeon Lager-Kelly' Released After 4 Years
100% Danish Malt... Double Maturation Method
Applied Pumpkin-Colored Bottle... Emphasizing Smoothness
"If It Draws Response, 'Regaining No.1' Is Possible"
HiteJinro is launching a new beer brand, Kelly (KELLY), for the first time in four years since 'Terra' in 2019. With its 100th anniversary approaching next year, HiteJinro plans to position Kelly alongside Terra, which has shown strong performance in the nightlife market, as a two-pronged strategy to strengthen its offensive to reclaim the top spot in the domestic beer market.
100% Malt Lager... "Capturing Intensity Within Smoothness"
On the morning of the 30th, HiteJinro held a press conference at Samcheonggak in Seongbuk-gu, Seoul, announcing that it will launch Kelly, an all-malt premium lager beer, on the 4th of next month.
Kelly, an abbreviation of 'KEEP NATURALLY,' embodies the philosophy of minimizing artificial elements and pursuing natural ingredients, brewing methods, and taste. It features 100% premium malt grown in Denmark, nurtured by the North Atlantic sea breeze, and undergoes a double maturation process.
HiteJinro emphasized that it spent three years researching and developing suitable malt and brewing techniques to create a lager beer that simultaneously delivers a smooth yet intense contrasting flavor. First, it selected Danish barley, which is softened by the year-round North Atlantic sea breeze from the Jutland Peninsula, and realized a smooth taste through 'slow germination,' which germinates the malt 24 hours longer than usual. Additionally, the 'double maturation method' adds intense carbonation by maturing the beer first at 7°C and then again at -1.5°C, achieving a perfect balance of flavors at optimal temperatures and creating a beer with coexisting dual flavor characteristics.
The packaging also differentiates itself from existing products. For the first time among domestic regular beers, an amber-colored bottle was developed and applied. The bottle shape expresses smoothness with curved shoulders and intensity with straight lines narrowing toward the bottom, effectively reflecting the product's characteristics.
Kelly will be simultaneously sold nationwide through major supermarkets, convenience stores, and other home channels, as well as restaurants and nightlife venues starting from its first shipment on the 4th of next month. The shipment price is the same as existing beers, and the alcohol content is 4.5%.
Two-Top System with Terra... Accelerating Reclaiming the Leading Position in the Beer Market
With the launch of Kelly, HiteJinro is expected to establish a two-top system alongside the existing Terra and accelerate its efforts to reclaim the leading position in the domestic beer market. Recently, Kim In-gyu, CEO of HiteJinro, officially declared the goal of regaining the number one spot in the beer market ahead of the company's 100th anniversary at the shareholders' meeting. CEO Kim emphasized, "We will continue market growth through the re-boom of Terra's beer business," adding, "We will always strive to be new and provide enjoyment to customers through communication with various demographics, aiming to regain the market with favorable consumer responses."
The competition in the domestic beer market is expected to intensify further with HiteJinro's introduction of Kelly. HiteJinro's 'Hite' held the number one position in the domestic beer market until 2011 but fell to second place behind OB Beer’s 'Cass' starting in 2012. As market share declined, the beer business turned to losses in 2014, and the 'All New Hite' launched in 2016 failed to make a significant impact, resulting in over 100 billion KRW in operating losses over five years from 2014.
HiteJinro began its full-scale effort to overturn the beer market in March 2019 with the launch of 'Terra.' Terra, introduced with the concept of a clean lager, made a splash mainly in the nightlife market, selling a cumulative 3.6 billion bottles by February this year. Notably, last year, annual sales exceeded 1 billion bottles for the first time, recording an average annual growth rate of 23% since its launch and establishing itself as a mega brand.
Following HiteJinro's successful turnaround, OB Beer has also tightened its reins. According to market research firm Nielsen Korea, Cass's home market share, which was 42.7% in 2018, shrank to 38.6% in 2021 after Terra's launch in 2019. Subsequently, OB Beer introduced clear bottles and underwent a rebranding, successfully rebounding to 41.3% last year. This month, it also re-released 'Hanmac,' launched in 2021 under the 'K-Lager' concept, with improved design and beer quality.
Industry insiders believe that since Terra has continuously increased its market share centered on the nightlife market, if Kelly successfully supports it by targeting consumers seeking premium malt products in the home market, a change in the leading position of the beer market is not impossible. An industry official said, "Not many expected Terra to achieve such great success when it was first launched," adding, "Although Cass's market share remains high and reclaiming the number one spot in the short term is not easy, if Kelly generates meaningful responses, it is entirely possible."
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