New Brand 'Number7'... Son Heung-min Starts with 'Tottenham Beer'
Plans to Expand Brand Lineup with Whiskey and More
Strengthening Dual Brand Strategy with Existing 'Daepyo'
SevenBrewery (SevenBrew), a first-generation craft beer company that led the domestic craft beer boom, is making a comeback through its new brand 'Number Seven (NO.7)'. SevenBrew aims to achieve both a performance rebound and the revival of the craft beer industry through a dual brand strategy with Number Seven and 'Daepyo' (Representative).
According to the Korea Exchange on the 18th, SevenBrew was newly listed on the KONEX market the day before. Initially planning to list on the KOSDAQ market, SevenBrew shifted to KONEX listing after the growth of the domestic craft beer market slowed, causing a decline in performance, and the overall listing conditions worsened due to the continued poor stock performance of Jeju Beer, the first listed company and competitor in the industry. SevenBrew plans to strengthen its foundation in the KONEX market and then attempt to transfer its listing to the KOSDAQ market next year.
Starting the new year with a stock market listing, SevenBrew plans to leverage the newly launched Number Seven brand this year to drive a performance rebound and gain momentum for the transfer listing. After suffering a major blow due to the expiration of the trademark contract for its flagship product last year, 'Gompyo Wheat Beer,' SevenBrew applied for the trademark of 'SevenBrew Number Seven' on the 9th and is focusing on strengthening its own brand.
On the 17th, at the Korea Exchange in Yeongdeungpo-gu, Seoul, Kim Kang-sam, CEO of SevenBrewery Co., Ltd. (center), and other officials are taking a commemorative photo at the listing ceremony on the KONEX market.
Gompyo Wheat Beer, launched in May 2020 in partnership with Daehan Flour Mills, sold over 60 million cans in three years and was a key product driving SevenBrew's growth. However, Daehan Flour Mills, which owns the Gompyo trademark, terminated the trademark contract with manufacturer SevenBrew in March last year and subsequently switched its partner to Jeju Beer to produce 'Gompyo Wheat Beer Season 2,' causing SevenBrew to lose its flagship product overnight.
This process also caused significant fluctuations in SevenBrew's performance. Sales, which soared to 40.3 billion KRW in 2021 during the heyday of convenience store craft beers, slowed to 32.7 billion KRW the following year and further dropped to 10.9 billion KRW as of the third quarter last year after losing Gompyo Wheat Beer. Operating profit, which was 9.6 billion KRW during the same period, turned into an operating loss of 3.9 billion KRW, marking a transition to deficit.
The first product of the Number Seven brand, tasked with the company's revival, is the so-called 'Tottenham Beer,' officially licensed in partnership with Tottenham Hotspur, the English Premier League (EPL) club of soccer player Son Heung-min. The new product, consisting of a 500mL lager beer and a 355mL non-alcoholic beer, is scheduled for release next month. SevenBrew plans to expand the Number Seven brand lineup to include various beer styles such as ales, other alcoholic beverages, and sparkling drinks.
In the second half of the year, SevenBrew also plans to launch 'Number Seven Whiskey.' After introducing a distillery at the Iksan Brewery in 2022, SevenBrew began full-scale distillation last year and is currently aging the product. According to current liquor tax laws, whiskey must be aged for more than one year to be recognized as whiskey. The first distillation batch will surpass one year in August, after which sensory evaluations will be conducted to decide on the release. Since the whiskey business requires a long-term process, the company plans to take its time and improve quality through various attempts such as different cask aging.
SevenBrew plans to organize and strengthen its product lineup around two main brands, Number Seven and Daepyo. This decision comes from the experience of the Gompyo incident, recognizing that securing competitive in-house brands is more important than indiscriminately releasing new collaborative beers. After the expiration of the Gompyo trademark contract, SevenBrew launched six Daepyo series products, including 'Daepyo Wheat Beer,' which succeeded Gompyo Wheat Beer, and is focusing on solidifying its own brand. This year, it plans to reinforce the dual brand strategy through Number Seven.
Kim Ji-hye, Executive Director of Brand Strategy at SevenBrew, stated, "'Number Seven' will be developed as a brand focusing on mass appeal, encompassing not only beer but also whiskey and other alcoholic beverages and drinks. The 'Daepyo' brand products will be operated separately with a concept that strongly reflects our identity and character as a craft beer company."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
