Korean liquor brand Hite Jinro Co. is enjoying its heyday for the first time in 10 years in sales and stock price thanks to a double homerun with Terra beer and soju Jinro whose clean taste mixed with nostalgic marketing style created a splash in the world’s best-selling spirit.
Hite Jinro revisited above 40,000 won for the first time since Jan. 5 2010 to close Friday 2.7 percent up at 40,200 won ($33.08) last Friday.
On Monday, Hite Jinro shares rose 1.99 percent additionally to finish at 41,000 won.
Its new beer brand Terra has been enjoying a solid sale on the back of the skyrocketing popularity of a mixture of Terra and Chamilsul soju called Tesla (Tesula, Terra+Chamisul). Hite Jinro shares more than doubled in just 15 months since it first released Terra on March 21, 2019. Terra sold 860 million bottles by the end of May, shaking up the nation’s beer market. Thanks to the sound sale of Terra, the company’s beer business swung to profit of 8.8 billion won in the first quarter.
In addition, its Jinro soju that comes with an old label design in a clear, blue-tone bottle has become a smash hit in the market thanks to the “Jinro is Back” retro marketing. It amassed sales of 300 million bottles in just a year since the launch in April last year. The company this month began exporting Jinro in seven countries including the U.S., Japan and China.
Shares of its holding entity Hite Jinro Holdings Co. have also been surging. They finished last Friday up 4 percent to 19,350 won. The holding firm is the biggest shareholder of Hite Jinro with a 50.8 percent stake.
Seoul-based market tracker FnGuide estimated that Hite Jinro would make 2.29 trillion won in sales on a consolidated basis this year, up 12.4 percent from last year. Its operating profit is expected to soar 105.1 percent on year to 180.9 billion won.
By Kim Gyu-sik and Choi Mira
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