Hite Jinro signs MOU with Kirin to produce Ichiban Shibori at Jeonju factory
Brewing method, raw materials and production standards replicated from Japan
Company targets 75% domestic production by next year
"Beer is typically made by blending the first and second wort extractions to maximize ingredient efficiency, but Ichiban Shibori uses only the first extraction," said Kwon Gwang-jo, Hite Jinro's premium zone director. "That is what gives it the rich, full flavor of the malt itself."
Kirin's flagship beer, Ichiban Shibori, is now being brewed in South Korea. Hite Jinro has partnered with the Japanese brewer to begin licensed production of the canned beer at its Jeonju factory. Kwon explained the brewing process Thursday at a press briefing held at Hite Jinro's integrated research center in Yongin, Gyeonggi Province, to mark the start of domestic production of the premium Japanese beer.
The two companies spent more than a year exchanging technical know-how and conducting trial production before signing a technology licensing MOU in July. It marks the first time Kirin has granted a production license to an import and retail partner in Asia with no capital ties to the Japanese brewer.
The relationship between the two companies dates back to 2004, when Hite Jinro first introduced Kirin Ichiban Shibori in bottles to the South Korean market. In 2011, the companies signed an exclusive import and distribution agreement covering canned and draft beer, and full-scale imports and sales began in 2012.
"Ichiban Shibori" means "first press" in Japanese. While brewers typically blend first and second wort to get more out of their ingredients, Ichiban Shibori uses only the wort drawn from the first pressing of the malt.
At the briefing, attendees could taste the two worts side by side. The second wort was pale in color with a light, thin flavor. The first wort used in Ichiban Shibori, by contrast, had a deep amber hue and carried a nutty, subtly sweet taste. The key is reducing the astringency that can come from re-steeping the malt while drawing out the grain's natural character. The Ichiban Shibori sampled at the event had a pronounced barley aroma, a crisp carbonation and a clean finish.
To replicate the taste of Kirin's beer as closely as possible, the two companies applied Japan's production standards to the Jeonju factory across the board — not just the brewing method, but also raw materials, fermentation temperature and duration, and quality control criteria. The yeast, a core ingredient, is sourced directly from Kirin's factories in Japan and then cultivated domestically. Other raw materials, including malt and hops, must meet the origin and specification standards set by Kirin. Hite Jinro obtained final production approval, which requires passing Kirin's quality checks at least three times.
Hite Jinro will begin by producing an initial run of about 1.5 million liters at the Jeonju factory — roughly 3 million cans in the 500-milliliter format. According to Hite Jinro, sales of Kirin Ichiban Shibori are projected to grow at an average annual rate of 82.4 percent between 2020 and 2026. By product type, the growth rate is 41 percent for bottles, 64 percent for draft and 97 percent for cans, with canned beer showing the sharpest increase.
Hite Jinro aims to produce about 75 percent of its total Ichiban Shibori sales volume domestically by next year. Domestically produced cans began shipping in the first week of this month. As inventory of Japan-produced stock is drawn down, the share of domestically made product in distribution is expected to rise gradually. Because the line accounts for a relatively small share of Hite Jinro's overall output, the company does not plan to make separate capital investments or expand its production lines.
The primary driver behind the decision to produce locally is a shorter transit time. Beer manufactured in Japan takes an average of six weeks to clear customs and reach South Korean consumers. Domestic production can cut that to one to two weeks, allowing fresher product to reach consumers.
A more stable supply chain is another advantage. Demand for Japanese beer in South Korea has risen sharply in recent years, at times outpacing supply. Kirin itself has faced shortages not only in its home market but also overseas, making it increasingly necessary to establish a more reliable production and supply system.
Lower logistics costs, however, are not expected to translate directly into lower prices. "We anticipate some savings on logistics costs through domestic production," Kwon said, "but we plan to invest those savings in marketing and promotions to pass the benefit on to consumers."
While the overall imported beer market in South Korea is contracting, Japanese beer continues to grow. According to Hite Jinro, the total imported beer market shrank at an average annual rate of 3 percent between 2020 and 2025, while the Japanese imported beer segment grew at an average annual rate of 72 percent over the same period. The imported beer market excluding Japanese brands declined at an average annual rate of 12 percent. Kirin Ichiban Shibori posted record sales last year and is expected to surpass that figure this year.
Hite Jinro described the domestic production of Ichiban Shibori as a strategy to meet growing demand for premium beer, treating it as a separate business from its existing domestic brands such as Terra and Kelly. For now, domestic production is limited to canned beer; expanding to bottles and draft has not yet been discussed in concrete terms.
"This technology agreement is not simply a transfer of a production site — it is the beginning of a strategic partnership aimed at achieving an even higher level of technology and quality," Hite Jinro CEO Jang In-seop said. "Through production in Korea, we will be able to build a more stable supply system and deliver Ichiban Shibori at an even fresher quality."
korean@heraldcorp.com