Whiskey Industry Giant Targets MZ Generation... Diageo Expands Lineup

Johnnie Walker, Black Sherry Finish
Limited Edition of 20,000 Bottles Priced Around 50,000 KRW
Added Sweetness Focused on Highball

[Asia Economy Reporter Eunmo Koo] Diageo Korea has expanded the lineup of affordable products under its flagship brand Johnnie Walker, aiming to capture the MZ generation (Millennials + Generation Z), who have emerged as major players in the whiskey industry.

According to Diageo Korea on the 28th, the new product of Johnnie Walker, the world's best-selling Scotch whisky brand, 'Johnnie Walker Black Sherry Finish,' was released as a limited edition on the 23rd. Black Sherry Finish is a blend of whisky aged for more than 12 years, which undergoes an additional maturation process in casks that previously held sherry wine. It features the sweetness of sherry casks added to the flavor of the existing 'Black Label.' Diageo Korea plans to sell 20,000 bottles of the new product as a limited edition and will consider additional quantities if the response is favorable.

This limited edition release by Diageo Korea is interpreted as a strategy to firmly capture the MZ generation, who are currently leading the domestic whiskey market. As whiskey's popularity rises, the company aims to expand its consumer base by increasing options through variations of relatively accessible products. A Diageo Korea official said, "Black Sherry is a bright and sweet-flavored product designed considering the diverse tastes of the 20s and 30s generation newly entering the whiskey market," adding, "We plan to target the MZ generation by focusing especially on highballs, which have become a new whiskey drinking culture."

In recent years, Johnnie Walker's limited edition products have focused on the brand's top-tier 'Blue Label,' such as the 'Year of the Tiger Edition' released earlier this year, 'Ghost and Rare Pittyvaich,' and the '200th Anniversary Edition' launched in 2020. However, Blue Label products are priced between the mid-200,000 to mid-300,000 KRW range, which inevitably limits the consumer base. In contrast, the new product, which is an entry-level Black Label additionally matured in sherry casks, is available for purchase in the 50,000 KRW range, lowering the entry barrier.

The domestic whiskey market is rapidly rebounding as home drinking and solo drinking cultures have spread due to COVID-19. According to the Korea Customs Service, whiskey imports from January to May this year amounted to 97.7 million USD (approximately 124.3 billion KRW), a 59% increase compared to the same period last year. If the trend continues, whiskey imports are expected to record an all-time high this year. The recent market growth is led by the MZ generation, who quickly acquire related information through platforms like YouTube and enjoy a variety of distinctive whiskeys such as single malts and bourbons. According to E-Mart, the proportion of whiskey consumers in their 20s and 30s increased from 39% in 2019 to 46% last year.

With the decline in sales in the entertainment market due to the Kim Young-ran Act (Improper Solicitation and Graft Act) and COVID-19, there is interest in whether Diageo Korea can find a breakthrough through new demand in the home market. Diageo Korea had consistently recorded annual sales of over 300 billion KRW for the past 10 years but saw sales drop below 200 billion KRW (1.932 billion KRW from July 2020 to June 2021) due to the impact of COVID-19.