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Hite-Jinro looks to form joint venture with Diageo

Hite-Jinro, a South Korea-based firm involved in the manufacture and distribution of alcohol beverages, is willing to negotiate with Diageo to form a joint venture that will be beneficial for both the companies.

The South Korean company is known for its alcohol brand Jinro soju, which reported sales of 65.3 million cases in 2012.

According to Hite-Jinro co-president and Hite-Jinro Japan CEO Yang Yin Jip, the company aims to achieve an annual sales of 100 million 9l cases in the next ten years.

Jip was quoted by Drinks International as saying that Diageo could help them achieve their target.

“Some investment from Diageo could mean we accelerate sales volume,” Jip added.

“With their power in other countries Diageo could be a great partner.”

Jinro soju also has good market presence in Japan, its largest export market, claims the company.

With 40 million cases, Jinro accounts for nearly half of the total soju consumed in South Korea.

Diageo, on the other hand, is on an acquisition spree buying Brazilian cachaça Ypióca Group, Chinese baijiu Shui Jing Fang, Turkish raki brand Mey Içki and Indian company Untied Spirits with an aim to leverage their widespread local distribution networks.

Source: Drinks Business Review