From BBQ to Kyochon... The Craft Beer War Ignites in the Chicken Industry Next Year

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BBQ to Begin Full-Scale Marketing After Icheon Factory Completion Next Year

Kyochon Unveils 'Plans for Differentiating Chicken Brands Using Craft Beer and Expanding into a New Brand Platform'

[Asia Economy Reporter Choi Sunghye] Next year, the competition for craft beer in the chicken industry is expected to heat up in earnest. Following BBQ, Kyochon has also started manufacturing its own craft beer after the government recently allowed outsourced alcohol manufacturing (OEM). With chicken brands launching their own craft beers, the craft beer market, currently valued at about 80 billion KRW, is projected to grow to 150 billion KRW within three years.

According to the food service industry on the 31st, Kyochon Chicken is developing a craft beer brand targeting the first half of next year. Hwang Haksoo, CEO of Kyochon F&B, stated at the ‘Initial Public Offering (IPO) Online Press Conference’ held the day before, "We have decided to develop a craft beer brand that can only be experienced at Kyochon stores," adding, "Starting next month, we plan to conduct test marketing at some franchise stores."

The background for launching the craft beer was cited as the rapidly growing market size. CEO Hwang explained, "The craft beer market size is expected to grow about 4 to 5 times from 63.3 billion KRW in 2018 to 370 billion KRW in 2023, and with expanding consumer demand for differentiated tastes and special atmospheres, we decided to develop craft beer."

Kyochon also plans to introduce new menu items combining craft beer and chicken. It is expected to be a menu pairing customized craft beers with chicken menus, such as the Kyochon series with Witbier, Red series with Golden Ale, and Honey series with Witbier.

CEO Hwang said, "We will promote and sell craft beer using our sales channels of over 1,200 franchise stores," adding, "We expect franchise store sales to increase further due to craft beer sales." However, it is known that final negotiations are still underway regarding production bases and partner companies.

BBQ Beer

The first chicken franchise to launch a craft beer brand was BBQ. After the government allowed OEM in May to strengthen competitiveness in the alcohol industry and activate domestic investment, BBQ developed six types of 'BBQ Beer' in July in collaboration with Microbrewery Korea, which operates the craft beer pub Octoberfest. The first released products include six types: Weizen, Dunkel, IPA, GPA, Pilsner, and Helles.

A BBQ official stated, "We entered the craft beer market to increase franchisee profits while supplying fresh beer and chicken to consumers." Currently, BBQ beer is mainly available in stores in the southern region, and next year, they plan to complete their own brewing factory in Icheon, Gyeonggi Province, to produce and distribute craft beer independently. They will first sell BBQ Beer at directly operated stores and BSK stores, which specialize in non-face-to-face packaging and delivery.

The official added, "Once the factory is completed next year and independent production becomes possible, we expect sales to increase significantly," noting, "Franchisees who introduced and actively sold craft beer early reported a definite increase in average spending per customer." He continued, "Consumers have a high psychological resistance to chicken prices, so franchisees need new elements that contribute to sales and profits, and craft beer can be a good alternative."

Regarding this, bhc stated, "There are no specific plans for craft beer development yet."