Lotte Chilsung and E&J Gallo Sign Business Agreement to Strengthen US Market Penetration

Strengthening the US Market Strategy for Soju Products Starting January Next Year

Lotte Chilsung Beverage announced on the 5th that it has signed a Memorandum of Understanding (MOU) to strengthen global collaboration with the 'E&J GALLO' winery in order to enhance its presence in the U.S. market.

Park Yoon-ki, CEO of Lotte Chilsung Beverage (right), and Bill Roberts, Vice Chairman of E&J Gallo Headquarters, are taking a commemorative photo after signing a business agreement.
[Photo by Lotte Chilsung Beverage]

On the 4th, Lotte Chilsung Beverage signed the agreement at Lotte World Tower in Jamsil, attended by CEO Park Yoon-gi and Bill Roberts, Vice Chairman of E&J GALLO headquarters. Under the agreement, Lotte Chilsung Beverage will strengthen sales of E&J GALLO’s wines in the Korean market, while E&J GALLO will actively support the sales of Lotte Chilsung Beverage’s brands 'Cheoeumcheoreom', 'Saero', and 'Soonhari' in the U.S. local market starting January next year, further reinforcing the global partnership between the two companies.

Since 2017, E&J GALLO, which has been collaborating with Lotte Chilsung Beverage in the Korean market, operates 75 subsidiaries and over 140 brands, exporting wines to about 110 countries. It is the world’s largest liquor company, with representative brands such as 'Carlo Rossi', 'Apothic', and 'Orin Swift'. Especially, Orin Swift, a leading Napa Valley cult wine, is greatly loved by Korean wine enthusiasts, with 15% of its total volume consumed in the Korean market.

A Lotte Chilsung Beverage official stated, “This MOU, scheduled to be fully implemented from January next year, is the result of long-standing cooperation and trust between Lotte Chilsung and E&J GALLO, symbolizing a renewed commitment to innovation and shared achievements in the global market.” He added, “E&J GALLO’s strong influence and expertise in liquor distribution in the U.S. market are expected to significantly boost the sales of soju and other alcoholic beverages in the U.S. market.”