“The domestic production of ‘Kirin Ichiban Shibori’ is a moment that reflects the fruits of the mutual trust built with Kirin over the past 20 years,” said Jang In-seop, CEO of Hite Jinro, during a press conference held on October 8 at the Hite Jinro Integrated Research Center in Yongin, Gyeonggi Province.
On that day, Hite Jinro officially announced that it will begin domestic production of Kirin Ichiban Shibori, which it has imported and sold for over 20 years. The Jeonju plant will produce an initial batch of 1.5 million liters, with canned products, which account for about 75% of domestic sales, being fully transitioned to local production.
Jang emphasized, “This technical agreement is the beginning of a strategic partnership that will create more advanced technology and quality, rather than just a transfer of production sites.”
Hite Jinro and Kirin signed a licensing agreement for production in July. This marks the first licensed production in Asia by a partner company that has no capital ties to Kirin. The domestically produced products began shipping in the first week of this month.
The initial volume of 1.5 million liters is equivalent to about 3 million 500ml cans. Canned products make up approximately 75% of domestic sales, with the remainder consisting of bottled beer and kegs for draft beer. The existing facilities at the Jeonju plant will be utilized without the need for additional production line expansions.
Hite Jinro explained that the key to domestic production of Kirin canned beer is to replicate the same taste and quality as the Japanese product. The two companies have engaged in technical exchanges and trial production for over a year.
Hite Jinro has received the ‘Ichiban Shibori method,’ which uses only the first-pressed wort, and is directly sourcing ‘Kirin yeast’ from Japan for cultivation in Korea. Production standards, including raw materials and brewing temperature and time, will adhere to Kirin specifications.
Products trial-produced at the Jeonju plant were sent to Japan for sensory evaluation and numerical analysis. Kwon Kwang-jo, head of Hite Jinro's premium division, stated, “If it does not meet the specified criteria, it will not pass,” adding that the production process underwent this evaluation more than three times.
Domestic production will also significantly reduce supply times. While products produced in Japan took an average of about a month and a half to clear customs and reach domestic distribution, locally produced items can be supplied within 1 to 2 weeks. Kwon noted that the focus behind the domestic production of Kirin Ichiban Shibori is more on ensuring stable supply rather than profitability.
Savings from logistics costs will be used for promotions rather than immediate price reductions. Kwon mentioned, “We expect some reduction in transportation costs,” and added that they plan to invest in marketing and promotions to provide benefits to consumers.
Hite Jinro's relationship with Kirin began in 2004 with the import of bottled products. In 2011, they signed an exclusive import and sales contract that included canned and draft beer.
According to Hite Jinro, the average annual growth rate of Kirin Ichiban Shibori sales from 2020 to 2026 is projected to be 82.4%. Canned products are expected to grow by 97%, significantly outpacing draft beer (64%) and bottled products (41%). Last year, the company recorded the highest sales volume in its history in Korea.
Hite Jinro plans to focus on stabilizing the production and sales of canned products for the time being. Discussions regarding domestic production and export of bottled and draft beer, as well as joint new product development, have not yet taken place. Kwon stated, “Since this is our first production, stabilizing production and sales is our primary task.”
Initially, top executives from Kirin and overseas business officials were scheduled to attend the press conference but were unable to do so. Jang explained, “They could not join due to circumstances in Japan.” Industry sources suggest that the ongoing investigation into price collusion in the Japanese beer industry may have influenced their absence.
* This article has been translated by AI.
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