"Just Removed One Sugar" Hit Sugar-Free Soju 'Saero'... Lotte Chilsung's Q1 Sales Surged (Comprehensive)

679.8 Billion Won, an 8.5% Increase Year-on-Year
Alcoholic Beverage Sales 207.7 Billion Won...Up 7% YoY
Beverage Sales Also Rise Due to Increased Outdoor Activities

Lotte Chilsung Beverage's zero sugar (sugar-free) soju "Cheoeumcheoreom Saero," launched last year, has driven sales growth in the company's alcoholic beverage sector in the first quarter of this year. This contrasts with the sluggish sales of beer and wine, which are mostly consumed at home, amid increased outdoor activities due to the endemic (periodic outbreak of infectious diseases).

Cheoeumcheoreom Saero 640mL PET
Photo by Lotte Chilsung Beverage

Lotte Chilsung Beverage announced on the 2nd that its consolidated sales in the first quarter of this year reached 679.8 billion KRW, an 8.5% increase compared to the same period last year. Operating profit was 59.3 billion KRW, a 0.7% decrease from the same period last year. By segment, sales in the alcoholic beverage sector rose 7% year-on-year to 207.7 billion KRW. Among these, soju category sales increased by 26.9% year-on-year to 18 billion KRW. It is understood that Saero, launched in the third quarter of last year, contributed to the sales growth.

Saero is a new soju product introduced by Lotte Chilsung Beverage for the first time in 16 years. Targeting the MZ generation (Millennials + Generation Z), it was developed as a sugar-free soju reflecting the recent "healthy pleasure" trend of enjoying health in a fun way. This strategy proved effective, gaining great market response. In the first quarter of this year, a 640ml PET version of Saero was released, and marketing activities were strengthened through a new campaign. As a result, cumulative sales surpassed 100 million bottles last month, just seven months after its launch.

Additionally, "Byeolbit Cheongha," launched in the second quarter of last year, also received a positive response, leading to a 24.5% year-on-year increase in Lotte Chilsung Beverage's cheongju (clear rice wine) category sales to 5.8 billion KRW in the first quarter of this year. However, beer and wine sales declined by 19.4% and 15.5%, respectively, limiting overall sales growth. Lotte Chilsung Beverage stated, "We plan a major renewal of Cloud beer in the second half of the year," adding, "We will expand the lemon gin product line within the year and launch new premium distilled spirits and highball products." They also added, "We aim to obtain permits for the Jeju distillery construction within the first half of the year and start construction by the third quarter to secure future growth engines."

Sales in the beverage sector increased by 8.5% to 423 billion KRW, and operating profit rose 18.7% to 39 billion KRW. Along with increased outdoor activities, energy drink sales surged 38.5%, and carbonated product sales also grew 14.6% due to the continued popularity of zero products. Sales in the bottled water category increased by 1.1% due to the rise in single-person households and growing demand for healthy water.

Lotte Chilsung Beverage announced plans to launch a new product, "Chilsung Cider Zero," with added new flavors to continuously respond to the expanding zero trend in the beverage sector this year. They also plan to introduce a new "Cantata" product, a functional food labeled for body fat reduction, and children's health supplements featuring "Kneepni," the character from the children's organic juice brand "Organic." Furthermore, they are preparing to reduce sugar content and renew packaging for the juice brand "Del Monte," while promoting eco-friendly packaging improvements through lightweight PET bottles.