Imported Beer Sales Slow Down... But Popularity of Large-Capacity 'Kegs' Rises with Increase in Home Drinking Culture

Overall Decline in Imported Beer Sales Due to Japan Boycott and COVID-19
Home Drinkers "Enjoy Fresh Draft Beer at Home" Large-Capacity Kegs Gain Popularity

[Asia Economy Reporter Choi Saeng-hye] Amid the shrinking imported beer market due to the Japanese boycott movement and the spread of the novel coronavirus infection (COVID-19), sales of large-capacity keg draft beer products have been increasing as the number of 'home drinking enthusiasts' (people who enjoy drinking at home) grows.

According to the Korea Customs Service export-import trade statistics on the 5th, the domestic beer import value and volume in the first quarter were $50.85 million and 63.89 million tons, respectively, down 30.7% and 31.7% from $73.4 million and 93.55 million tons in the first quarter of last year. The industry analyzed that the overall import value decreased due to a sharp decline in Chinese beer imports caused by the COVID-19 situation. Sales at marts are also showing a downward trend. Imported beer (world beer) sales at Lotte Mart from the 1st to the 31st of last month decreased by 14.1% compared to the same day last year.

On the other hand, consumers who want to enjoy fresh draft beer in large quantities at home have increased, leading to significant growth in sales of 5ℓ keg products of imported beers such as Heineken, Edelweiss, and Tiger. At E-Mart, sales of three types of kegs increased by 29.6% from the 27th of last month to the 2nd of this month. Homeplus also stated, "While overall imported beer sales are somewhat sluggish, keg products are steadily rising."

In the case of Heineken draft beer kegs, the carbonator pressure device releases carbon dioxide to maintain a constant pressure, preserving the fresh taste of the beer for 30 days after opening. Like in pubs, beer can be poured by pressing a mini tap tube. The capacity is about 20 glasses of 250ml each.

Along with kegs, sales of 'beertenders' have also increased. A beertender is a beer refrigerator that uses a 220V power supply and connects to the keg via a tube. It maintains the optimal draft beer temperature of 4℃ and preserves the keg pressure for up to 30 days to keep the taste fresh. Sales of the 'Tefal Beertender,' introduced by E-Mart in April, increased by 29.8% from the 27th of last month to the 2nd of this month.

A representative from Heineken Korea, which imports and sells three types of imported beer kegs including Heineken, Edelweiss, and Tiger, said, "Due to the prolonged difficulty of dining out or company dinners caused by COVID-19, the popularity of keg products continues." They added, "Following the discount event for simultaneous purchase of keg + beertender held as a limited offer in April, an additional event was conducted last month, and promotions applying discounts depending on the credit card company are still ongoing."