CJ Olive Young to Drop Alcoholic Beverages, Strengthen Non-Alcoholic Lineup

Suspending Operations After Three and a Half Years as Health Trends Spread
Not a Full Exit... Non-Alcoholic Products Will Remain

CJ Olive Young is effectively exiting the alcoholic beverage retail business. This comes three and a half years after the company first entered the market at the end of 2021. The decision is attributed to a decline in demand for wine and ready-to-drink alcoholic beverages, as health-conscious consumer trends have become more widespread. Going forward, the company plans to restructure its product lineup to focus on non-alcoholic products.

According to industry sources on July 2, Olive Young has been holding a clearance sale offering a 50% discount on all alcoholic beverages at major stores nationwide since July 1. This event will continue until July 30. News of the discounts spread through social networking services (SNS), leading to stockpiling at some locations. At one store in Songpa-gu, Seoul, a customer purchased five bottles of wine at once immediately after opening.

Olive Young launched its alcoholic beverage business at the end of 2021, selling wine, beer, and low-alcohol drinks primarily at stores in high-traffic areas such as Myeong-dong and Gangnam in Seoul. In March 2022, the company expanded its business by adding "manufacturing and retail of alcoholic beverages" to its articles of incorporation. This move was influenced by increased demand as the "home drinking" culture took hold among younger generations during the COVID-19 pandemic.

However, the overall alcoholic beverage market has recently been affected by the spread of wellness trends such as "healthy pleasure" and "slow aging." Olive Young appears to have adjusted its strategy in response to these trends. A company representative stated, "As consumers are increasingly prioritizing health, we have decided to reduce the alcoholic beverage category," and added, "We plan to shift our operating strategy to focus on non-alcoholic products going forward."

However, the company clarified that it is not completely withdrawing from the alcoholic beverage business. An Olive Young representative said, "We are flexibly adjusting our strategy in response to market changes," and added, "There is a possibility that we may strengthen the business again in the future, focusing on non-alcoholic products."

Meanwhile, Olive Young has continued to expand its stores, maintaining steady growth. In the first quarter of this year, Olive Young's standalone sales reached 1.2342 trillion won, up 14.1% from the same period last year. During the same period, net profit increased by 19.3% to 126.3 billion won.