In an era where the consumption of alcoholic beverages is declining, the liquor industry is turning to ultra-low-cost offerings as a strategy to attract consumers. Due to the dual challenges of high prices and reduced alcoholic beverage consumption, products like 990 KRW makgeolli and soju, and now even low-priced beer, are emerging in the market.
Recently, distributors and the liquor industry have been releasing a series of alcoholic beverages priced around 1,000 KRW. Following the introduction of 990 KRW soju and makgeolli, a new Spanish low-alcohol beer priced at 1,000 KRW is being launched.
According to E-Land Retail, Kim’s Club is set to exclusively launch the Spanish imported low-alcohol beer ‘Marinero Español’ on the 27th. Such beer is made by reducing the malt content and substituting certain ingredients, enabling it to offer a similar refreshing taste to regular beer while lowering taxes, and thus be sold at a reduced price.
Kim’s Club has priced this product, which has an alcohol content of 4.5% in a 500mL can, at 6,000 KRW for a pack of six cans. This equates to 1,000 KRW per can, about 30% cheaper compared to similar products in general supermarkets.
The liquor industry is actively engaging in ultra-low-cost marketing. Sunyang Soju recently launched a ‘Good Soju 990’, priced at 990 KRW per bottle, to alleviate the burden of grocery prices. Emart, in collaboration with Daejeon Brewery, introduced ‘Gugutak Makgeolli’ at 990 KRW per bottle.
The backdrop for these developments is the pressure from high prices and the changing drinking culture. With ongoing inflation driving up dining expenses, domestic liquor shipments have shrunk by about 21% over ten years, from 4.014 million KL in 2015 to 3.151 million KL in 2024. Additionally, drinking culture is shifting from heavy drinking to light enjoyment.
As the overall liquor market size shrinks, the industry appears to be offering ultra-low-cost products, even at the expense of margins, to attract new demand.
The trend isn’t limited to popular drinks. Leveraging a direct import system that bypasses intermediaries, Kim’s Club successfully introduced the ‘Everyone’s Wine’ series at 5,990 KRW and a 700mL bottle of Scotch whisky ‘Lighthouse Unpeated’ at 9,990 KRW.
A retail industry insider noted, “With the spread of a culture of drinking lightly at home, low-cost products are rapidly absorbing market demand. Large retailers are actively utilizing direct import channels and local manufacturer networks, intensifying the competition for low-cost specialty liquor products.”