Among foreign tourists, one of the must-try drinks when visiting Korea is Binggrae's "Banana Flavored Milk." But exports are modest compared with its domestic sales and popularity. Binggrae is seeking to expand exports by overcoming the short shelf life of refrigerated products with a sterilized format, leveraging heightened brand recognition.
According to convenience store CU on the 27th, based on foreigner payments (Alipay, WeChat Pay, etc.) from January to September this year, Banana Flavored Milk (240 ml) is among the best-selling items. During the same period, sales of Banana Flavored Milk at airport stores rose 72.9% from a year earlier. At GS25's airport location as well, more than 1,200 bottles of Banana Flavored Milk are sold per day on average. Among scenes U.S. and European YouTubers film for Korea travel content is buying Banana Flavored Milk first at airport convenience stores, and Chinese tourists often pack 10 to 20 bottles in insulated bags.
Despite its popularity among foreigners visiting Korea, its presence is modest in overseas markets. Binggrae's consolidation sales for the first half of this year were 718.1 billion won, up 1.4% from a year earlier, but operating profit fell 38.9% to 40.2 billion won. A Binggrae official said, "Growth continued in major export markets such as the United States, Canada, and Vietnam, but overall performance stagnated due to a slowdown in domestic demand and adverse weather." Even that was driven by export growth centered on ice cream products represented by Melona.
The reason is the short shelf life of Banana Flavored Milk. It is not a major issue for nearby markets such as China and Japan, but it becomes a hurdle for more distant countries in Southeast Asia, the United States, and Europe. Room-temperature storage is also impossible, adding a heavy burden in overseas logistics costs. Competition is particularly fierce in Southeast Asia, the United States, and Europe, where there are many similar dairy drink brands, though not banana flavored.
In response, Binggrae is producing an export-only sterilized (UHT) format product (200 ml). The consumption period has been extended to more than nine months, and it can be stored at room temperature. This product is exported to more than 30 countries, including the United States, China, Taiwan, the Philippines, and Canada. Sterilized Banana Flavored Milk accounts for 90% of total Banana Flavored Milk export volume.
A Binggrae official said, "One reason for Banana Flavored Milk's popularity is its jar-shaped bottle, but the sterilized product cannot use this container," adding, "Instead, we are launching new products tailored to local tastes and promoting Banana Flavored Milk through major overseas food fairs, as we work to expand exports to new countries and broaden distribution channels."
The distribution industry views it as Binggrae's task to make consumers naturally seek "the taste they had in Korea while traveling" even after they return to their daily lives in their home markets.
An industry official said, "We need momentum to link tourists' experience of drinking it in Korea to local purchases," and noted, "Rather than relying only on brand recognition, Binggrae should consider localization strategies suited to each country's distribution structure." Another official said, "The jar-shaped Banana Flavored Milk they first encountered in Korea likely made a strong impression on foreign tourists," adding, "They need to research and develop (R&D) jar-shaped containers for sterilized products."