Lotte Duty Free is teaming up with the domestic premium distilled liquor brand Hwayo to enhance the competitiveness of K-spirits.
On October 27, Lotte Duty Free announced that it has signed a strategic memorandum of understanding (MOU) with Hwayo for exclusive product development and expansion into overseas markets. The signing ceremony took place on October 26 at Lotte Duty Free's Myeongdong flagship store in Seoul, attended by Kim Won-sik, head of the Myeongdong store, and Park Jeong-hwa, head of Hwayo's sales division.
This partnership aims to capitalize on the growing demand for Korean alcoholic beverages, driven by the spread of K-culture. From January to September this year, Lotte Duty Free's sales of K-spirits to foreign customers surged by 275% compared to the same period last year.
The two companies will collaborate on exclusive product development, global distribution network expansion, and events targeting top-tier customers, including experiential pop-ups.
Initially, they will launch the 'Hwayo × Gwangjuyo' curated set, which combines Korean distilled spirits with ceramics, as an exclusive product at Lotte Duty Free. This product was first released at the Gimpo Airport store and will be expanded to Lotte Internet Duty Free and major domestic stores in the future.
The partnership will also strengthen overseas operations. Hwayo, which entered Lotte Duty Free at Singapore's Changi Airport this year, plans to gradually expand its sales network to other overseas stores starting in 2027.
In June, Hwayo announced its entry into the Changi Airport duty-free market, showcasing high-proof spirits like 'Hwayo 41' and 'Hwayo 53' to international travelers. This agreement will broaden their sales base not only in domestic airports and downtown duty-free shops but also for overseas tourists.
Experiential marketing targeting premium customers will also be pursued. On October 26, Lotte Duty Free hosted an invitation-only event for its highest-tier LVIP customers at the Myeongdong flagship store. Next month, a tasting event will be held at the World Tower store, with plans for additional experiential pop-up spaces in the future.
Recently, Lotte Duty Free has been enhancing its premium liquor marketing through collaborations with Moët Hennessy, conducting exclusive liquor events for top-tier customers in Seoul and Busan. This approach combines product tastings with customer engagement to broaden connections.
Kim Won-sik, head of Lotte Duty Free's Myeongdong store, expressed hope that this partnership will serve as an opportunity to introduce excellent K-spirits to global customers, stating, "We will continue to expand collaborations with competitive brands both domestically and internationally to present differentiated products and achieve mutual growth."
* This article has been translated by AI.
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