E-Malt.com News article: South Korea: Interest in imported beers helps to develop local beer industry

Imported beers have outsold local brands in South Korea during since the opening of the start of the World Cup on June 13, The Korea Times reported on June 20 .

Sales of imported beer jumped 53.3 percent year-on-year between June 13 and 18 at a major discount store. Sales of domestic brands rose 14.1 percent in the same period. Korean squad drew 1-1 with Russia on June 18.

The retailer declined to name its brand, as it does not disclose sales data for specific items.

"During big sports events such as World Cup and Olympics, there is a tendency to consume more beer, imported beer in particular, than ordinary days," a staff member said.

"What is different from the past is that there is greater demand for imported beer backed by the rising interest in foreign beers from people who have experienced various beers abroad."

He said retailers were competing to import more beers than in the past to meet demand.

The increase in foreign brands is prompting local beer-makers to step up efforts to improve quality.

"I think it's a kind of virtuous cycle that is helping to develop the domestic beer market," the official said.

The market share of imported beer increased to 26.4 percent for the June 13-18 period, up from last year's 21 percent for the same week, the data shows.

Backed by the rising percentage of imported beers, domestic beer is claiming a smaller piece of the local market. The share for the nation's leading brand, Oriental Brewery Company (OB), fell to 52.9 percent from 63.3 percent in the same period, the data revealed. Rival HiteJinro's share dropped to 31.9 percent from 36.7 percent.

Convenience store industry data also showed a similar trend.

A leading convenience store chain, a unit of a top conglomerate, asking not to be named, said sales of imported canned beer rose 13 percent from June 13 to 18 from a year earlier.

Imported canned beer accounts for 38.4 percent of total canned beer sales, up from 31 percent a year earlier.

OB's flagship beer brand Cass sold the most in the convenience store, accounting for 39.8 percent of the market share. But that marks a 7.7 percentage point drop from a year earlier.

HiteJinro's canned beer accounted for 10.9 percent, down 2.6 percent. Lotte Chilsung Beverage's newly released beer, Cloud, accounted for 5.2 percent.


25 June, 2014