Imported Liquor Prices Rise, Domestic Beer and Soju Only Tempt Taste... Restaurants Resort to Desperate Measures

Imported Beer and Whiskey Price Hikes Continue
Makgeolli Joins the Price Increase... Entering the 2000 Won Era
More 'Corkage Free' Restaurants Amid Alcohol Price Rise

As the government has taken out the card of conducting a fact-finding survey on the liquor industry to curb price hikes on affordable alcoholic beverages, the upward trend in prices, especially for imported liquors, continues. Following imported beer and whiskey, even Makgeolli, a representative affordable domestic liquor, has joined the ranks of price increases.

According to the industry on the 25th, a series of price hikes in the liquor industry has recently been led by imported liquors. Among imported beers, OB Beer is expected to raise prices by an average of 9% at the end of this month for products such as Budweiser, Stella Artois, and Corona, which it imports and distributes. Heineken Korea also raised prices for some on-premise products by an average of 9.5% starting from the 10th of last month.

Stella Artois.
Photo by OB Beer

Whiskeys and cognacs have also announced price increases starting next month. The cognac product 'Hennessy VSOP' imported by MH Champagne & Wine Korea will see a 5.2% price increase for 350~700㎖ bottles, and 'Hennessy XO (700㎖)' will rise by 5%. Glenmorangie will increase prices by 3.8% for the Original, and 6.4% each for Lasanta, Quinta Ruban, and Nectar. The 18-year and Signet variants are expected to become 10.3% and 20% more expensive, respectively. Transbeverage will raise prices for Glen Grant products by 5.3~9.8% depending on the year, and Wild Turkey will increase prices by 5~9.5% depending on the type. Whiskey prices have been rising since the beginning of this year. The Scotch Blue products distributed domestically by Lotte Chilsung Beverage increased by an average of 11.9%, and the 10 types of 'Macallan' imported by D&P Spirits also rose by 5.2~13.5%. Glenrothes and Highland Park have increased prices by 10~50% depending on the type. The main reasons behind the price hikes for imported liquors are increases in import costs and logistics expenses.

Among domestic liquors, Makgeolli has joined the price hike trend. Woorisul has decided to raise the convenience store prices of 'Tokseng Makgeolli' and 'Gapyeong Pine Nut Makgeolli' by 17.9% and 24.3%, respectively, starting next month. Most products, which were previously priced around 1,000 KRW per 750㎖ bottle, will now rise to the 2,000 KRW range, marking the entry of Makgeolli into the 2,000 KRW era.

Gapyeong Jat Saeng Makgeolli. [Photo by Woorisul Homepage Capture]

On the other hand, prices for domestic beer and soju are expected to remain stable for the time being. The government announced that it would launch a comprehensive fact-finding survey on the liquor industry, including factors behind price hikes and profit margins, ahead of any price increases this year. This effectively amounts to putting a brake on price hikes. Accordingly, leading soju companies such as Hite Jinro and Lotte Chilsung Beverage have officially stated that they are not considering raising soju prices, and OB Beer has also expressed that there will be no product price increases.

Meanwhile, as a reaction to the rising liquor prices, the number of restaurants declaring 'Corkage Free' has been increasing recently. While it was common for customers to bring their own wine or champagne to restaurants, the sharp rise in liquor prices has led many ordinary restaurants to allow customers to bring in affordable liquors such as beer or soju.

Kim Hyung-su (39), a self-employed person running a barbecue restaurant in Anyang, Gyeonggi Province, said, "Originally, liquor sales accounted for a large portion of revenue, but as the atmosphere of not drinking excessively continues, we started corkage free with the mindset of at least selling food." He added, "Even if liquor prices rise by a few hundred won due to the distribution structure, the increase accumulates through wholesalers, so restaurant owners worry deeply whenever they receive price hike notices."