Korean soju is one of the top selling spirits in the world, but can that popularity transfer to canned cocktails? Several emerging brands are aiming to find out.
Much of soju’s recent international rise is thanks to Jinro, the world’s highest-selling spirit by volume, which has had its eyes on becoming a mainstream spirit in the international market for several years. The company broke ground on its first overseas distillery in February, aimed at becoming a gateway for further global sales.
Exports of the category as a whole eclipsed $200 million last year, up 3.9% from 2023, according to Korea Customs Service. As the Korean spirit begins to make waves outside of its home country, the founders of these ready-to-drink (RTD) beverages are hoping the trend creates a whitespace amid a flood of RTD brands.
Soju-based RTD beverages number in the few in the U.S., but they are resonating with some important audiences. Just last month, BevNET Cocktail Showdown winner Yoju closed a $1.4 million raise led by Top Shelf Ventures and No Sleep Beverage, whose portfolio includes popular lifestyle brands Juliet Wine and Madre Mezcal. In April, California-based Hello Soju raised $6.8 million for its relaunch.
These brands are steadily making gains in retailers as well. Yoju, which launched in 2022, is now on the shelves of Costco and Trader Joe’s, while soju seltzer Hummy has expanded its distribution to seven states.
This emerging crop of soju RTDs range from yogurt-spiked takes on traditional Korean drinking rituals to flavored sparkling seltzers, founded by Korean-Americans to K-pop media executives. Whether grounded in the founders’ own heritage or not, they’re all building on a swell of attention – particularly from younger generations – on Korean media and music, or the “Korean wave.”
Beverage groups are just now on the crest of said wave. Gallo, the third-largest spirits supplier in the U.S. by volume, partnered in 2023 with the second-largest soju producer to distribute its Soonhari, Chum Churum and Saero brands in the U.S. Many soju brands like Soonhari are flavored and low-ABV, hitting several key notes with younger drinkers.
“The soju category doubled in the U.S. over the past five years, driven by accelerating consumer demand,” said Britt West, senior vice president and general manager for Spirit of Gallo, in December 2023. “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.”
Soju RTDs could sit even more squarely in the cultural vogue of an age demographic spirit brands are desperate to recruit – and it’s no surprise some in the business are hedging their bets on these brands breathing new life into a tequila and vodka-heavy RTD category.
“Yoju perfectly captures No Sleep Beverage’s philosophy of investing in drinks brands that embrace culture and transcend consumers’ expectations,” said Charlie Rodman, CMO of No Sleep Beverage, in a release. “Yoju delivers a new kind of drink experience for many Americans; it usually starts with some uncertainty and always ends with excitement. That lets us know the brand is delivering something fresh.”
But breaking into a new category and disrupting a traditional category has its challenges. Soju off-premise sales reached $32 million in the latest 52 weeks, up 4% versus a year ago, with 100-year-old Soju maker, Jinro, dominating with over 75% of total soju sales – the Jinro brand also has the top nine UPCs for Soju.
Who Drinks Soju RTDs?
Because Korean communities have traditionally enjoyed soju straight and associate it so closely with Jinro (known colloquially as “the green bottle”), the audiences for RTDs have been surprising for some founders.
Launched during the pandemic by Los Angeles and New York-based Korean American friends, Hummy’s 5% ABV seltzer comes in flavors of Honey Melon, White Peach and Asian Pear, wrapped in a brand identity featuring Korean motifs. The founders learned early on that, like other RTDs rooted in cultural flavors and identity, their audience wasn’t necessarily other Koreans.
“Koreans have such a deep relationship with soju and tradition around it,” said co-founder David Lee. “That’s still the brand identity, but we realized that there could be a much wider reach, similar to K-pop or Korean cuisine – it has roots in Asian culture, but everyone enjoys it.”
Yoju, the Los Angeles-based yogurt and soju Korean cocktail line, also has similar fruit flavor profiles– Lychee, Mango and White Peach – but riffs off a tradition of combining drinkable yogurt and soju. Its eye-catching, vibrant tiger-themed cans do appeal to an Asian-American demographic, said co-founder Steven Tang, which has been a draw for retailers. But Hispanic drinkers are also fans, thanks to the familiarity with Asian drinkable yogurts such as Yakult.
It’s not just the “Korean wave,” it’s the thirst for full-flavor RTDs (think BuzzBallz) that may be driving younger generations to flavored sojus and Yoju, added Tang. The brand has been capitalizing on that niche recently by creating a presence at major K-pop concerts and raves.
Getting On The Shelf – But Which Shelf?
Yoju and Hummy have encountered different experiences at retail – the Hummy founders argue that liquor store buyers are not tapped into Gen Z trends, while Yoju’s co-founder has found retail buyers, especially younger ones in beer and RTD departments, are first to know about trends and are generally soju savvy.
“They are more on-board and understand soju, but I think there’s still a lot of convincing that it’s popular enough to put a soju RTD on the shelf,” Tang said.
But which shelf? The Hummy founders often have to choose between fighting for a slot in the RTD section and getting lumped into an international spirits section. So far, there’s been no consistent playbook, with every retailer and market revealing different results.
Meanwhile, Yoju is now transitioning from just targeting specialty and craft beer shops to placement in mainstream retailers including Whole Foods and Kroger.
Taking Tradition Mainstream
Yoju now faces the question of how to lean into its traditional roots and unique aspects, while positioning it for wider mass appeal.
“People might not know what soju is, and then, second of all, the yogurt aspect just makes it completely foreign to Americans,” said Tang.
Tang and his co-founder haven’t quite figured out how to straddle that line yet, but they’re hoping to take cues from the Finnish Long Drink – a gin RTD modeled after a traditional cocktail that skyrocketed to the top of the sales charts.
Hello Soju – a brand that originally launched in 2023 and has reemerged this year after fundraising, rebranding and adjusting product formulation – will take a different approach. The brand is leaning into the “blended Californian and Korean culture” embodied by Los Angeles, which includes the largest population of Koreans overseas.
The relaunch includes a lineup of sparkling soju seltzers that also include flavors of Asian Pear, Lychee, Peach, as well as Lemon Yuzu and Green Grape, made with a soju produced in California. As the cans roll out in California and Nevada, a larger format soju is next in line.
Hello Soju is part of The Hello Group (THG), an entertainment company headquartered in Los Angeles with operations in London, Brussels, Amsterdam and Seoul. Its $6.8 million round was led by a personal investment from Ted Schlein of Kleiner Perkins and Ballistic Ventures, and supported by THG. With big backers and a distribution deal with Southern Glazer’s Wine & Spirits, Hello Soju’s roots may not have the authenticity of other soju-based RTDs, but it may have the largest marketing budget to pursue awareness of the segment.
CEO Elisabeth Baron, whose resume includes Diageo and LVMH, joined the team to spearhead the new business.
“Being in this business so long, it’s really hard to distinguish yourself from everyone else in the bunch,” she said. “And so right now, we are trying to lean into our music roots and also build our community to be this beautiful, blended, diverse community we have here.”