"Two Months in a Container... Why Drink Imported Beer?" Korean Craft Beer Challenging the Beer Homeland

Interview with Moon Hyuk-ki, CEO of Jeju Beer

The photo is not related to any specific expressions in the article. [Image source=Getty Images Bank]

[Jeju=Asia Economy Reporter Park Soyeon] "Which beer is fresher: the beer that came in by container ship for two months or the beer freshly produced domestically?"

At the Jeju Beer headquarters in Hallim-eup, Jeju City, Moon Hyuk-gi, CEO of Jeju Beer, said, "The best taste is the beer you drink locally," emphasizing, "Imported beers require excessive heat treatment during dry container transportation, so they can never match the freshness of domestic craft beers."

CEO Moon said, "The domestic beer market has passed through the 'first wave' led by large corporations in the 1990s, the 'second wave' led by imported beers priced at 4 cans for 10,000 won since 2010, and is now experiencing the 'third wave' where craft beers based on diversity are loved."

As of the end of 2020, domestic craft beers accounted for about 3% of the total beer market in Korea. CEO Moon said, "I believe the domestic craft beer market has the potential to grow up to about 20%, similar to the size of the U.S. craft beer market," adding, "If all craft beer brands grow healthily with their own uniqueness, the market could still be 7 to 8 times larger."

Jeju Beer's recent growth is also fierce. According to market research firm Nielsen Korea, from January to May this year, Jeju Beer ranked 7th in the domestic retail sales market following the domestic beer 'Big 3'?OB Beer, Hite Jinro, Lotte Chilsung Beverage?and imported beers such as Heineken, BK (importer of Tsingtao), and Diageo Korea (importer of Guinness).

Moon Hyuk-ki, CEO of Jeju Beer

CEO Moon said, "It is very encouraging that Jeju Beer performed this well in the home beer market dominated by imported beers despite suffering from supply shortages for 13 months from May last year to May this year," and added, "Since the long-term out-of-stock situation was resolved from June this year, Jeju Beer will aggressively replace the market diversity previously represented by imported beers and improve the market structure."

Jeju Beer, which established itself as the 7th largest brand domestically in just seven years since its founding, recently started exporting to Europe. By forming a production partnership with Lotte Chilsung Beverage to solve supply volume issues, it began exports to the UK and Germany, and the market has high expectations that it will surpass the break-even point this year.

In Europe, it has secured distribution channels in about 20,000 stores including Tesco and Costco, as well as sales routes in about 1,200 entertainment venues including restaurants. Export target countries include the UK, Germany, France, and the Netherlands, with plans to expand throughout Europe later. CEO Moon hinted, "It is difficult to specify the exact timing of surpassing the break-even point, but I expect to share good news soon."

Advanced production process and preparations for new investments for overseas expansion are also underway. Jeju Beer, which raised about 26 billion won through a KOSDAQ listing last May, is conducting research services for smart factory facility investments incorporating artificial intelligence (AI). Next year, it plans to establish a local corporation in Vietnam.

CEO Moon cited 'human resources' as the secret to Jeju Beer's rapid establishment as a leading domestic craft beer brand and successful listing. Jeju Beer has executives with expertise in various fields, including CEO Moon, Cho Eun-young as Chief Operating Officer, Kwon Jin-joo as Chief Marketing Officer, and Kim Bae-jin as Chief Production Officer. COO Cho is a former U.S. Certified Public Accountant who worked at Hyundai Marine & Fire Insurance and Samil Accounting Corporation. CMO Kwon joined Jeju Beer after working at Haitai Beverage and Hite Jinro. Production Officer Kim was in charge of production at OB Beer for a long time.

CEO Moon said, "Although seven years have passed since the founding, no executive has left," adding, "We were lucky, but it is because we worked with good people who share the same goals." He added, "There were four funding rounds in the past seven years, and there were tense moments when funds did not come in when needed. Now that listing has enabled more stable company management, we will take on bigger challenges and fulfill our heavy social responsibilities."