[Convenience Store Empire] Distilled Soju and Highball... Leading Alcoholic Beverage Trends

⑬Standing Tall as a Nearby Liquor Warehouse

Targeting MZ Generation with Differentiated Liquor
Expansion of Liquor Specialty Stores by Each Company
Mobile App Ordering Becomes the Trend

The convenience store industry is leading the latest alcohol trends. Immediately after the COVID-19 outbreak, craft beer, wine, and whiskey surged in popularity, and recently distilled soju and highball have caused a sensation. Among the MZ generation (Millennials + Generation Z), a culture of enjoying various alcoholic beverages according to personal taste has taken root, and convenience stores have quickly responded to this demand.

A customer is purchasing a highball at CU.
[Photo by BGF Retail].

The Era of Differentiated Alcoholic Beverages

According to GS25 on the 19th, craft beer sales increased by 381.4% in 2020 compared to the previous year, 234.1% in 2021, 76.6% last year, and 31.1% from January 1 to April 12 this year. Wine sales grew by 30.6% in 2020, 158.3% in 2021, 73.2% last year, and 45.9% so far this year. Distilled soju sales recorded growth rates of 672% last year and 361% this year, emerging as the trendiest alcoholic beverage.

The product that changed the history of convenience store craft beer was Gomppyo Wheat Beer, launched by CU in 2020. This product caused a sell-out frenzy immediately after its release, with cumulative sales reaching 34 million units. It was the first time a uniquely differentiated product in the convenience store beer market surpassed major manufacturers' products to take first place. Other convenience stores also released new products aiming for a second Gomppyo Wheat Beer hit. GS25 countered in 2021 with Nordisk Beer and Vape Beer. In the same year, Seven Eleven launched various collaborative products such as Kya Beer and Ddung-rang-i Beer, and Emart24 introduced a beer inspired by the SSG Landers baseball team.

The wine market also grew rapidly at the same time. CU has continuously released its private brand (PB) mmm! series priced around 10,000 KRW, and the single-serving small bottle wine, Wine Half Bottle, ranked first in both wine sales and volume within a month of launch. GS25 operates 12 types of differentiated wines, including the Number Series and Nature Sound Series. Since 2020, Seven Eleven has held monthly recommended wine events curated by a product planner (MD) with a sommelier certification. Emart24 has sold two types of Krasad since June 2020, surpassing 1 million bottles in cumulative sales last year and establishing itself as a steady seller.

Since last year, the trend has shifted to distilled soju and highballs. CU’s premium distilled liquor, Bitsoju, sold 300,000 bottles within three months of launch. The UpUp Lemon Tonic and Earl Grey Highball sold out the initial 200,000 units within three days and have recorded cumulative sales of 2 million units. GS25’s Wonsoju Spirit gained huge popularity with open-run queues and surpassed 5 million bottles in cumulative sales. Since late January this year, they have launched nine products including Kushimasa Highball and Noted Highball. Seven Eleven sold out the initial 100,000 units of Lim Chang-jung Soju and is expanding its highball lineup with products like Aged Highball, Salty Good Highball, and Malt Whiskey Highball. Emart24 is selling Mori19 as a standalone distilled soju product and has introduced Ready Classic and Pink Highball to target the market.

Specialized Alcohol Stores and App Enhancement

Convenience stores are increasing specialized alcohol stores. CU operates about 30 specialized alcohol stores. These category killer stores have a separate alcohol purchase space, offering more than three times the variety of alcoholic beverages and more than twice the average sales compared to regular location stores. GS25’s specialized alcohol stores expanded from about 5,000 last year to 7,500 this year. In particular, GS25 Z Planet sells about 1,000 types of alcoholic beverages, more than 10 times that of regular stores. Seven Eleven opened a Wine Studio at the KT Gangnam branch in 2021. The approximately 30-pyeong (about 99 square meters) space offers over 350 different products, with prices ranging from 5,000 KRW to 700,000 KRW. Emart24 operates 4,600 specialized alcohol stores and focuses on selling trendy alcoholic beverages.

Mobile ordering services are also being strengthened. Customers order wine through an application (app) and pick it up at their desired store, a new competitive edge considering that online alcohol sales are prohibited. Pocket CU CU Bar sales increased by 424.1% from January 1 to April 12 this year compared to the same period last year. Currently, it handles over 1,100 types of products including beer, traditional liquor, wine, and whiskey. More than 70% of the products sold are priced above 100,000 KRW, indicating a high average transaction value. GS25’s Wine25 Plus sales grew by 144%, operating over 7,000 products. The sales composition by type was 38.6% hard liquor, 34.2% wine, 19.5% beer, and 6.1% traditional liquor. Rare wines and whiskeys sell out immediately upon release. Seven Eleven’s app alcohol sales grew by 30%, and Emart24’s increased by 102%.

An industry insider said, “The number of customers wanting to experience unique and new alcoholic beverages regardless of age or gender is increasing every year,” adding, “We will continue to quickly introduce various products that are hard to find in existing convenience stores and lead alcohol trends.”