Lotte intensifies marketing efforts in fast-growing U.S. market

[Courtesy of Lotte Chilsung Beverage Co.]

Lotte Chilsung Beverage Co. is intensifying its marketing in the United States to establish soju, Korea‘s distilled alcoholic beverage, as a stand-alone category alongside other alcoholic beverage.

According to the Korea Customs Service’s export-import data, soju exports totaled $101.4 million in 2023. Japan was the top importer with $30.83 million, followed by the United States with $23.55 million.

Soju exports to the United States have increased from $13.04 million in 2021 to $18.51 million in 2022 and $23.55 million in 2023, and Lotte Chilsung‘s soju exports grew at an average annual rate of 46 percent during this period.

To sustain this growth, Lotte Chilsung signed a memorandum of understanding in December 2023 with U.S. liquor company Gallo to strengthen their global partnership. Leveraging Gallo’s distribution network, Lotte Chilsung has expanded its sales channels, placing soju products such as Cheoeum Cheoreom Sunhari in approximately 10,000 U.S. liquor stores in 2024.

The company is also increasing its presence on major distribution channels such as Costco. These efforts have resulted in a more than 40 percent increase in U.S. exports in the first half of 2024 compared to the same period during the previous year.

Lotte Chilsung also organized various promotional events at local venues. The company opened a bar at the home stadium of LA Galaxy, a local soccer team, in April 2024 to promote Sunhari, selling cocktails made with Sunhari. The company celebrated the first anniversary of its U.S. launch in June, with an event in partnership with a popular Manhattan club.

“We will accelerate our expansion in the U.S. market by introducing new flavors based on local preferences and using various marketing strategies,” the company said.