E&J Gallo aims to broaden the market reach of Lotte Chilsung Beverage Co.’s soju in the United States by taking on the distribution, seeking to introduce the beverage into a wider range of mainstream channels.
Soju, a Korean alcoholic beverage, is commonly crafted from tapioca, sweet potato, rice, wheat, or barley, and typically possesses an average alcohol by volume (ABV) of approximately 20%.
Soonhari, Chum Churum, and Saero, the soju brands from Lotte Chilsung, are currently sold in specialized Asian retailers in the United States. On December 4, Spirit of Gallo, the spirits division of E&J Gallo, announced its intention to broaden distribution to include all other channels. The distribution agreement between the two companies is set to commence next month.
Britt West, the general manager for Spirit of Gallo, said the soju category was at a “pivotal” moment in the US.
Without citing the source of the data, he added, “The soju category doubled in the US over the past five years, driven by accelerating consumer demand.
“The newest generation of drinkers has been driving the growth and is turning over the soju category due to its variety, convenience, and accessible price point.
“We are entering the category at a pivotal moment with the strongest partner, and we look forward to capitalising on this opportunity.”
According to Spirit of Gallo, Lotte Chilsung Beverage Co. is the second-largest manufacturer of soju globally, and soju holds the position of being the largest spirits category worldwide in terms of volume.
Lotte Chilsung Beverage Co., a division of Lotte Group, manufactures a diverse range of over 100 beverages, encompassing soju, beer, whiskey, fruit wine, and rice wine. With six manufacturing facilities, the company extends its exports to more than 70 countries.
Kyungdong Kim, president of US subsidiary Lotte Beverage America Corp., said, “We are excited to partner with Spirit of Gallo to leverage their distribution network and go-to-market capabilities to bring soju closer to more consumers and take the category and the Lotte Chilsung brands to new heights.”
In September, Spirit of Gallo collaborated with Mexican boxer Saúl “Canelo” Álvarez and the Mexican spirit company Casa Lumbre to introduce a line of Tequila Ready-to-Drink (RTD) beverages in the United States. The initial rollout of the products will focus on “select markets with substantial Mexican-American populations,” as stated by Spirit of Gallo.
Last year, E&J Gallo established Spirit of Gallo as a specialized umbrella business unit dedicated to its spirits operations.
In July last year, the wine giant made a noteworthy announcement with a “strategic investment” in Horse Soldier Bourbon, signifying its first venture into the U.S. whiskey market.