Dive Brief:
- Spirits giant Sazerac is broadening its portfolio with its first soju brand, capitalizing on a fast-growing segment in the alcohol category.
- Dalho will launch in the U.S., in four flavors: original, peach, strawberry and lychee. The launch will include a 50-milliliter bottle designed for consumers trying the Korean spirit for the first time.
- Soju, which is distilled from grain and originates from Korea, has seen a rise in popularity due to its flavor-forward nature, a trait particularly of interest to Generation Z. The U.S. is projected to see soju volumes grow at a 16% annual growth rate through 2029, according to IWSR data cited by Sazerac.
Dive Insight:
With the addition of Dahlo, Sazerac is continuing to build out its portfolio with new brands and acquisitions appealing to a new generation of legal drinkers. Within the last year, Sazerac bought RTD cocktail brands Dirty Shirley and a stake in Kendall Jenner’s 818 Tequila. Earlier this week it purchased Au Vodka, a canned cocktail brand that's seen significant growth from social media.
Sazerac, which owns legacy bourbon and whiskey brands Buffalo Trace and Fireball, continues to diversify its portfolio against strained trends in the spirits market.
Dalho, which combines the Korean words for "moon" and "tiger," is launching in 50- and 375-milliliter bottles. Sazerac says the 50-milliliter option is a category first for soju, which is traditionally shared between multiple people at meals. The spirits company hopes the smaller portion size will encourage more flexibility for flavor variety and casual trial.
“Soju has always been a spirit rooted in connection, and we wanted DALHO to build on that in a way that feels fresh and inviting,” Lauren Selman, brand director of global growth and innovation at Sazerac, said in a statement. “Whether someone is trying soju for the first time or already enjoys the category, the flavors and the 50mL format offer an approachable way to explore the DALHO lineup and discover something they enjoy.”
Soju is seeing a similar growth trajectory of tequila and RTDs, according to IWSR. However, it hasn’t taken off as much in the U.S. due to some consumer confusion on what it is, including some confusing it with sake.
“Unlike other spirits, there isn’t a clear starting-point for soju – like a Margarita, vodka soda, gin & tonic, etc – which creates both friction for consumers and an opportunity for brands to define the category,” Koryn Ternes, IWSR US consulting director, said in the IWSR report.
Though Sazerac has been on a recent deal-making streak, it has also recently developed new brands in house. Dalho joins newly launched AJ Bound, a Tennessee whiskey brand.
