Comprehensive Liquor Wholesale Distribution O4O (Online for Offline) Platform Gains Attention
Breaking Inefficiencies in the Closed Liquor Industry... Praised for Attracting Demand from Suppliers, Wholesalers, and Liquor Businesses
The startup Beluga Brewery, which operates the comprehensive liquor wholesale distribution platform 'Beluga Business,' announced on the 3rd that it has secured investment from global venture capital 500 Startups and existing investor Kakao Ventures. Photo by Beluga
[Asia Economy Reporter Kim Heeyoon] Beluga Brewery, a startup operating the comprehensive liquor wholesale distribution platform ‘Beluga Business,’ announced on the 3rd that it has secured investments from global venture capital 500 Startups and existing investor Kakao Ventures.
Beluga Business is Korea’s first O4O (Online for Offline) liquor distribution platform that connects retail stores selling alcohol to general consumers, suppliers who produce or import products, and wholesalers responsible for logistics and distribution between stores and suppliers.
The liquor industry has maintained a closed framework along with regulations under the Liquor Tax Act. However, due to the prolonged COVID-19 pandemic, active liquor administration and regulatory improvements have been promoted to revitalize non-face-to-face services in the liquor industry. Existing legal regulations were relaxed twice in April and July. According to the Ministry of Economy and Finance and the National Tax Service’s ‘Liquor Regulation Improvement Plan,’ liquor delivery from general restaurants became possible via telecommunication sales if the price of the ordered liquor is less than 50% of the total order amount. Until now, the liquor industry strictly regulated telecommunication sales through phone or online, adhering to strict face-to-face transaction principles, but in April, liquor sales via the ‘smart order’ method were permitted. Beluga Brewery explained that the scope of telecommunication sales, which was exceptionally allowed only for traditional liquors for the promotion of traditional liquors, has now expanded to various liquor products.
However, despite gradually easing regulations, the industry points out that there are still many areas needing improvement. The biggest issue is the closed nature of the liquor distribution process, causing information asymmetry between wholesalers and liquor stores and the traditional ordering method. Previously, stores selected liquor and placed orders by phone based on limited product information obtained through sales representatives.
According to Beluga, stores can easily search and order various types of liquor products distributed domestically, including beer. Moreover, stores can search for store information and conduct non-face-to-face sales targeting potential business partners. By accurately addressing the problems faced by suppliers, wholesalers, and stores in poor conditions due to COVID-19, the number of platform users surged rapidly within a short period. Riding this momentum, the platform secured 5,000 products and achieved 300,000 monthly views about a year after service launch, marking remarkable achievements as a new distribution channel.
Kim Kyungmin, Director of 500 Startups, said, "We highly evaluated the growth potential of Beluga Business’s platform for eliminating information barriers between wholesalers, suppliers, and stores, fostering a healthy ecosystem, and fundamentally improving the liquor market’s structure, which has been disconnected from digital technology, thereby driving the growth of the liquor market. We invested believing in Beluga’s vision, which has pursued the single goal of creating a comprehensive liquor platform."
Kim Sangmin, CEO of Beluga Brewery, said, "Ultimately, Beluga aims to grow into the largest liquor platform providing joint logistics services for suppliers and wholesalers, transforming and leading the liquor market as a pioneering platform."
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