Let's Row When the Tide Comes... The Era of Domestic Craft Beer '4 Cans for 10,000 Won' Arrives

[Asia Economy Reporter Cha Min-young] Amid the boom in the domestic craft beer market due to the backlash against Japanese beer and the revision of the liquor tax law, convenience stores have also stepped up sales promotions with discount events.

According to convenience store Seven Eleven on the 27th, domestic craft beer sales from January 1 to 26 this year increased by 221.8% compared to the same period last year, more than tripling. As a result, overall domestic beer sales also rose by 28.2% during the same period, significantly surpassing last year's sales growth rate of 5.3%.

The influence of craft beer within the overall domestic beer category has also grown. The share of craft beer in the domestic beer category was only 2.5% in 2018 but soared to 7.5% in 2019, and currently stands at 9.0% this year.

This change was largely influenced by the boycott of Japanese beer and the improved price competitiveness of domestic craft beer. Imported beers had surpassed domestic beers in 2017, driven by young consumers' trend toward diversity and price competitiveness represented by the "4 cans for 10,000 won" promotion, maintaining their dominance since then. However, with the Japanese boycott in the second half of last year, domestic beers began to recover, and in January this year, domestic beer sales surpassed imported beer with a sales ratio of 52.5 to 47.5. The revision of the liquor tax law, which changed the beer tax system from ad valorem tax to specific tax, was implemented on January 1 this year, further enhancing the price competitiveness of domestic craft beer.

Seven Eleven is also strengthening discount events for domestic craft beer. In fact, this month, they held a "3 cans for 9,900 won" discount event targeting six domestic craft beer products, and next month, they plan to hold a "4 cans for 10,000 won" event for five craft beer products. They also plan to run a "3 cans for 9,000 won" event for another three products.

They are also expanding their product lineup. Seven Eleven currently operates a total of nine craft beer products, including the newly launched three types (Moon Bear Baekdusan IPA, Moon Bear Geumgangsan IPA, and Jeju Slice). They plan to expand to about 15 types mainly focusing on 500ml cans, which have high demand, within the first half of the year and are considering relocating the display to the main zone.

Oh Min-guk, head of the beverage and liquor team at Seven Eleven, said, “With the change in the liquor tax law, the price competitiveness of domestic craft beer has increased, and starting this year, movements to expand the presence of craft beer in the domestic beer market are expected to accelerate.” He added, “Since craft beer holds high value as a differentiated product in the convenience store market as well, it is expected to play a significant role in revitalizing beer sales.”