HiteJinro will produce the Japanese beer Kirin Ichiban Shibori in South Korea, aiming to shorten supply times and reinvest savings on logistics into marketing and promotions to expand consumer benefits.
The company said on the 12th that it has signed a technology partnership with Japanese brewer Kirin and begun producing canned Kirin Ichiban Shibori at its Jeonju plant. Initial domestic output is targeted at about 1.5 million liters, and the company plans to produce 75% of total sales volume in Korea next year.
"By applying Kirin's proprietary recipe, ingredients, production processes and quality control standards at the Jeonju plant, we can now reproduce the taste and quality of the Japanese original here in Korea," HiteJinro Chief Executive Jang In-seop said at a press briefing held on the 8th at the company's integrated research center in Yongin, Gyeonggi Province. "Through domestic production, we will build a stable supply system."
The company said this marks the first case in Asia in which an importer and distributor with no equity ties to Kirin produces the beer under a license agreement.
Kirin Ichiban Shibori is brewed using the so-called "ichiban shibori" method, which uses only the first wort pressed from the malt. HiteJinro received the core brewing method and yeast from Kirin and is cultivating the yeast directly at the Jeonju plant. Other raw materials, including malt and hops, are sourced according to the origins and specifications set by Kirin.
HiteJinro expects domestic production to shorten delivery times. Previously, products brewed in Japan took about a month and a half on average to clear customs and reach Korean retailers, but that can now be cut to one or two weeks, the company said. Savings on logistics will be channeled into marketing and promotional activities to expand consumer benefits.
HiteJinro first imported bottled Kirin Ichiban Shibori to Korea in 2004, signed an exclusive import and sales agreement in 2011, and expanded to canned and draft beer from 2012. The company estimates the brand's average annual sales growth from 2020 to 2026 at 82.4%.
By product, canned beer grew 97%, outpacing draft beer at 64% and bottled beer at 41%. HiteJinro plans to first stabilize production and supply of canned beer before gradually increasing volumes, and is also considering extending domestic production to bottled and draft beer.
"We will establish a permanent communication channel between the two companies' technical teams and advance and standardize quality control standards through regular exchanges," said Kwon Kwang-jo, head of HiteJinro's premium division. "We plan to expand cooperation across a range of products and business areas."
Boycott Over, Japanese Beer Booming
HiteJinro is moving into domestic production because demand for Japanese beer is rising even as the broader liquor market contracts. According to the Ministry of Food and Drug Safety's 2026 yearbook on inspections of imported foods, imports of Japanese beer reached 100,322 tons last year, up 22% from a year earlier.
Customs Service trade data showed imports of Japanese beer totaled $45.92 million in the first half of this year. That is the highest first-half figure in a decade, up 16.9% from the previous record of $39.29 million in 2018.
Japanese beer imports were hit hard in 2019 as a boycott of Japanese goods spread in Korea. First-half import value plunged 92.2% to $2.72 million in 2020 from $34.79 million in 2019. Volume fell 92.3% over the same period, to 3,176 tons from 41,535 tons. Sales of Japanese beer at convenience stores and large discount chains shrank sharply at the time, leaving the market effectively stalled.
The rebound was steep once relations between Seoul and Tokyo improved. Import volumes began edging higher from 2022, and this year's import value has far surpassed pre-boycott records.