Spirit of Gallo Partners with LOTTE, Diversifies Portfolio with Soju, Targets Gen Z Consumers

Spirit of Gallo has incorporated a new category into its rapidly expanding spirits portfolio: Soju. This exciting addition comes as a result of a partnership with LOTTE Chilsung Beverage Co., Ltd.,

The Rise of Soju

Soju, originally from Korea, boasts the title of being the number one spirits category in the world by volume. Its popularity has surged among multicultural consumers and Gen Z 21+ consumers in the U.S. who seek diverse and unique alcoholic beverage options.

Made from a variety of ingredients such as tapioca, sweet potato, rice, wheat, or barley, Soju offers a milder flavor and lower alcohol content compared to many Western spirits. This combination of mildness and versatility makes Soju immensely appealing to a wide range of consumers.

Lotte Chilsung Beverage Co., Ltd., the second-largest Soju manufacturer globally, holds the distinction of being the first manufacturer to craft Soju with mineral-rich alkaline water. Their extensive Soju portfolio gives consumers multiple brand choices within this versatile category, including flavored options like Soonhari, unflavored choices like Chum Churum, and zero-sugar offerings like Saero. These Soju varieties can be enjoyed neat, on the rocks, or mixed with fruit juice, soda, or other traditional bar mixers.

Expanding Distribution Channels

Previously, Lotte's popular Soju brands had limited availability in the U.S., primarily limited to Asian specialty stores. However, with the strategic partnership between Lotte Chilsung Beverage Co., Ltd. and Spirit of Gallo, the third-largest spirits supplier in the U.S. by volume, the distribution of Soju products will significantly expand across all other channels.

Yonhap News Agency noted that this expansion aims to capture the growing opportunity and make Soju more accessible to a broader consumer base across the United States.

The President of Lotte Beverage America Corp., Kyungdong Kim, expressed his enthusiasm regarding the partnership with Spirit of Gallo. The collaboration leverages Spirit of Gallo's expansive distribution network and go-to-market capabilities. According to PR Newswire, this alliance aims to bring Soju closer to a larger consumer audience, thereby elevating the Soju category and propelling the Lotte Chilsung brands to new heights.

"The Soju category doubled in the U.S. 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 capitalizing on this opportunity," said Britt West, Senior Vice President and General Manager for Spirit of Gallo.

Appreciating the Soju Varieties

Among the delightful Soju offerings, Soonhari stands as the original flavored Soju, meaning "smooth" in Korean. Soonhari delivers a fruit-infused experience with a subtle sweetness, clean profile, and smooth taste. On the other hand, Chum Churum presents itself as a clear distilled spirit made from tapioca, grains, and natural bedrock mineral-rich water, resulting in an exceptional taste.

Saero, the zero-sugar Soju, takes the spotlight to cater to health-conscious consumers. Its name, which means "new" in Korean, reflects its unflavored nature and zero sugar content.

Photo: PR Newswire