Overview: The Korean convenience store market has recently rolled out a series of craft beers made in partnership with well-known domestic and overseas breweries. This shift in strategy marks a significant change from the past when products flooded the market with price promotions.
The Full Story
In recent years, Korea’s craft beer market experienced rapid growth during the COVID-19 pandemic. However, as prices continued to rise due to global demand and production costs, many breweries struggled financially. In response, convenience stores began introducing a wide range of craft beers made in collaboration with domestic and overseas breweries.
CU, operated by BGF Retail, released a product in collaboration with Mikkeller of Denmark; GS25 introduced a product made with Hitachino Nest from Japan; and Original Beer Company (OBC) followed suit. These collaborations aim to broaden the brand’s touchpoints beyond bottled products reminiscent of champagne or sparkling wine.
Production & Profile
CU Mikkeller Burst IPA, Seoul California Common, GS25 Hitachino Nest Daisy Ale, and OBC Lager Vienna Ale are just a few examples of the various collaborations on offer. Prices range from 4,500 to 6,300 won per can.
The Mikkeller collaboration products sell for 4,500 won each; the Hitachino Nest collaboration products sell for 5,400 won; and OBC collaboration products sell for around 5,000-5,900 won. Bundle discounts apply to four cans of any beer.
Brand & Industry History
The recent surge in popularity of collaborations between Korean breweries and international brands reflects a growing appreciation among consumers for brewery character and story.
During the craft beer boom in Korea, products collaborating with local and overseas breweries were highly sought after. However, many focused more on the “craft beer” category itself rather than recognizing individual brewer expertise or quality.
What This Means
The shift towards collaborations between Korean brewers and international brands marks a significant change in strategy for convenience store craft beer. Rather than competing solely through price promotions, these businesses are focusing on building brand value and targeting specific fan segments.
This approach is also influenced by the recent failures of Korea’s domestic craft beer market following rapid growth during COVID-19. As breweries seek to regain profitability and build a loyal customer base, collaborations with international brands have become increasingly popular.
Consumer Takeaway
In this new landscape, consumers can expect more emphasis on brewery character and story alongside taste quality. Convenience stores that focus on building strong relationships with local brewer fans will be better equipped to succeed in the competitive market.
The success of these collaborations depends heavily on brand recognition and the ability to differentiate products through storytelling, rather than relying solely on price promotions or mass appeal.
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