Oriental Brewery (OB), a subsidiary of AB InBev, announced its acquisition of Jeju Soju from Shinsegae L&B, marking its entry into South Korea’s traditional distilled liquor market. The deal, whose financial terms were not disclosed, includes Jeju Soju’s production facility, land, and groundwater usage rights. OB plans to absorb the soju maker, which was founded in 2011.
The acquisition comes as soju gains international popularity, fueled by the global rise of K-pop and Korean cuisine. In 2023, soju exports surpassed $100 million, the highest in a decade. OB aims to capitalize on this growing trend, with a focus on the export market for the vodka-like rice liquor.
Despite Shinsegae’s investment of 57.0 billion won ($42.4 million) into Jeju Soju, the brand struggled financially, accumulating losses of 43.4 billion won over the past four years. Shinsegae L&B has been looking to offload the soju maker as part of a broader restructuring effort.
OB’s entry into the soju market positions it to challenge dominant players like HiteJinro, which controls 59.8% of the domestic market, and Lotte Chilsung Beverage, with an 18% share. The acquisition aligns with OB’s strategy to diversify its portfolio amid growing global interest in Korean alcohol.
