As Social Distancing Prolongs and Heatwaves Overlap... Only 'Homsul' Increases

Record High Wine Imports in the First Half of the Year
New Craft Beer Products Released One After Another at Convenience Stores

[Asia Economy Reporter Jo In-kyung] With the reinforcement of social distancing measures due to the resurgence of COVID-19 and the ongoing heatwave, the trend of enjoying alcohol at home, known as 'homsul' and 'honsul,' has intensified this summer. Wine imports have reached an all-time high, craft beers are being launched one after another at convenience stores, and 'self-cocktails' made with various beverages and liquors following personal recipes are gaining popularity.

According to the distribution industry on the 31st, since the social distancing level in the metropolitan area was raised to level 4 on the 12th, Emart's liquor sales increased by 25.0% compared to the same period last year until the 29th. Whiskey sales rose the most at 69.7%, followed by beer and wine at 23.5% and 23.2%, respectively, and soju sales increased by 10.1%.

During the same period, convenience store CU's liquor sales also grew by 64.1%. Wine sales surged by 111.7% compared to the previous year, followed by beer at 70.9%, soju at 43.7%, and Makgeolli at 38.9%. Currently, this convenience store carries about 130 types of beer and 150 types of wine.

A CU representative explained, "The number of craft beers, which was only 12 before COVID-19, has now increased to about 30, with half of them being exclusive products sold only at CU. As for wine, the 'mmm!' red wine, launched as a flagship product earlier this year, has recorded cumulative sales of 500,000 bottles to date."

According to Korea Customs Service import-export trade statistics, wine import value in the first half of this year reached $236.88 million (approximately 273.5 billion KRW), a 110.0% increase compared to the same period last year. This is the highest ever for the first half of the year, reaching 86.0% of last year's total import value of $275.3 million (317.9 billion KRW). With the surge in import volume in the first half, the annual wine import value for this year is expected to surpass last year's record high.

As home drinkers enjoy various liquors, sales of liqueur products such as rum, gin, and vodka used for cocktail making have also increased significantly.

At Emart24, liqueur product sales in the first half of this year rose by 121% compared to the previous year, tonic water and carbonated water used for cocktail making increased by 86%, and sales of ice cubes rose by 25%. Notably, ice cube sales increased by 40% in the first quarter, which includes the winter period, likely due to the growing number of customers enjoying cocktails.

The early arrival of the heatwave combined with the Tokyo Olympics boom has also led to a surge in beer sales. CU hit the convenience store craft beer golden age last year with the success of Gompyo and Malpyo beers, and GS25 responded competitively with 'Nordisk Beer,' a collaboration with the outdoor brand Nordisk. Seven Eleven recently partnered with Baedal Minjok to launch 'Kya Sounding Beer (Kya Beer),' while Emart24 is targeting the market with three baseball-themed beers including 'SSG Landers Lager.'

An industry insider said, "As COVID-19 prolongs, more people are drinking alone, so consumers are diversifying their choices of liquor types and products according to their preferences. Since alcohol cannot be sold online or delivered due to its nature, convenience stores and marts are competing fiercely in wine and beer marketing to attract customers."