E-Malt.com News article: South Korea: Craft beer slump drives pivots to highballs and wider sales channels

As the slump in Korea's craft beer market drags on, fortunes are diverging for companies that once led the craft beer boom. While firms that bulked up on beer alone during the boom are entering rehabilitation and bankruptcy proceedings one after another, those that diversified revenue sources with highballs and dining businesses are relatively holding up. Securing new growth engines beyond a craft beer–centric business model is emerging as the key to survival in the industry, Chosun.Biz reported on October 19.

According to the liquor industry on the 19th, Busan's first-generation craft beer company Wild Wave filed for bankruptcy with the Busan Bankruptcy Court in April and was declared bankrupt in June. It popularized sour (sour) beer in Korea and built a base of enthusiasts, but it could not withstand the accumulated losses from expanding its brewery and offline stores.

Amazing Brewing Company, which grew through collaboration beers such as "Jin Lager," was also declared bankrupt in April. It secured 18 billion won in investment and expanded convenience store distribution, but after entering corporate rehabilitation proceedings last year, it failed to find a buyer.

By contrast, companies that reshaped their business structures to match changing alcohol consumption are posting relatively solid results. Craft beer maker Kabrew fully expanded into the highball business in 2024 by launching "Real Lemon Highball" and "Real Lime Highball." It then broadened into fruit highballs and zero-sugar products. As a result, it swung to profit, from 8.3 billion won in revenue and a 900 million won operating loss in 2023 to 13.4 billion won in revenue and a 2.1 billion won operating profit in 2024. Last year, it also posted 15.3 billion won in revenue and a 900 million won operating profit, maintaining a surplus for two straight years.

Daily Beer, operator of the craft beer franchise "Saenghwal Beer," is also growing on the back of its own dining outlets. It sells craft beer from regional breweries at more than 200 locations nationwide while expanding its own production capacity through brewery acquisitions and more. Revenue rose from 20.5 billion won in 2022 to 34 billion won last year, and last year's operating profit came to about 2.8 billion won.

In this environment, companies that have entered corporate rehabilitation proceedings are also seeking a comeback by reshaping their business structures. Sevenbrau entered corporate rehabilitation proceedings last year and pursued normalization through a sale, but on the 2nd of this month it halted a preapproval merger and acquisition (M&A) and submitted a going-concern rehabilitation plan.

7bräu saw revenue climb to 40.3 billion won in 2021 after "Gompyo Wheat Beer," launched with Daehan Flour Mills in 2020, gained explosive popularity. But with the end of the brand licensing agreement in 2023 and a market slump, last year's revenue fell to 6.8 billion won. The Iksan plant, expanded during the boom, ran at an average utilization rate of about 11% last year, and it also posted a 5.4 billion won operating loss.

Accordingly, 7bräu is pushing to diversify through highballs. After releasing the yogurt-flavored highball "Yohaball" with Seven-Eleven last year, it rolled out "Apple Mango Highball" this year and "Strongball Lemon Can," co-developed with CU. In July, in collaboration with CU and the Korea Heritage Agency (KHA), it refreshed the packaging of three existing beers, strengthening promotions for its own brands. In April, it wrapped up a dispute of nearly three years with Daehan Flour Mills and secured support for a 2.3 billion won co-prosperity cooperation fund.

Y Brewery, which supplies beer to franchises such as the craft beer chain "Bronx," is also pursuing a comeback by expanding its sales network. It entered simplified rehabilitation proceedings in January this year, but in August it received court approval for its rehabilitation plan. It adjusted its debt burden by converting 65% of general rehabilitation claims into equity and repaying the remaining 35% in installments over seven years starting in 2030.

Y Brewery plans to continue supplying beer to existing distribution channels while expanding draft beer supply to other dining franchises. It will also pursue a renewal of Bronx company-owned stores and resume franchising. It also outlined a plan to develop new beers that can be consumed widely like Cass and Terra to enhance price competitiveness.

Kim Seung-cheol, a professor at National Suncheon University, said, "The low-margin, high-volume distribution model that relied on convenience store channels in the past has hit a ceiling," and noted, "There needs to be an independent survival channel that is not subordinated to large distribution networks."


20 October, 2026