Sazerac Enters Fast-Growing Soju Segment with Dalho Launch
Sazerac, the owner of Buffalo Trace and Fireball, is expanding into soju with the launch of Dalho, a Korean grain spirit available in original, peach, strawberry, and lychee flavors. The brand debuts with a 50-milliliter bottle—a first for the category—to lower the barrier for first-time consumers. The move follows Sazerac's recent acquisitions of Dirty Shirley, a stake in 818 Tequila, and Au Vodka, as it diversifies amid shifting spirits trends.
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 includes a 50-milliliter bottle designed for consumers trying the Korean spirit for the first time.
- Soju, a grain-distilled spirit originating from Korea, has seen a rise in popularity due to its flavor-forward nature—a trait particularly appealing to Generation Z. The U.S. is projected to see soju volumes grow at a 16% annual rate through 2029, according to IWSR data cited by Sazerac.
Dive Insight:
With the addition of Dalho, Sazerac continues to build out its portfolio with new brands and acquisitions aimed at 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 has 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 growth trajectory similar to that of tequila and RTDs, according to IWSR. However, it hasn't taken off as much in the U.S. due to some consumer confusion about what it is, including some mistaking it for 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.