[THE INVESTOR] Wine has found a new place in the lifestyles of Korean consumers who increasingly see it as a casual drink for everyday enjoyment due to falling prices and growing accessibility.
According to the Korea International Trade Association, wine imports last year reached $189.8 million, surpassing the value of imported whisky for the first time. New trends indicate that much of the growth was fueled by Korean consumers’ increasing preference for affordable wines to enjoy at home.
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A customer checks out a wine at a discount store in Seoul. |
The volume of imported wine rose 7.4 percent on-year in 2015, but the value of imported wine rose just 3.2 percent, indicating that more low-priced wines were brought into the country.
Korean consumers have traditionally viewed wine as an expensive drink for special occasions.
However, in recent years wine has become more widely available through channels such as discount retailers and convenience stores, and at more affordable prices.
According to grocery chain E-mart, the top five best-selling wines from January to May 2016 in its stores were priced below 10,000 won ($8.45).
Data from discount retailer Lotte Mart also showed that wines priced under 10,000 won rose 8.1 percent on-year from January to April. These low-priced wines have made up more than half of all wine sales at Lotte Mart so far this year.
Wine sales have also been rising at convenience stores. Convenience store chain GS25 reported that sales of wine have increased 22.4 percent in April and May compared to the same months in 2015.
“This is a continuation of the 10 to 20 percent growth we have seen each year since we began selling wine,” a spokesman for GS25 said.
Wine sales also rose 16.1 percent on-year at 7-Eleven from January to May. Wines under 10,000 won currently make up 37 percent of sales, with wines over 30,000 won accounting for just 15.1 percent of all sales.
Reflecting the rising popularity of low-cost wines, retailers have begun to create their own brands to fit consumer needs.
The best-selling wine at E-mart is “G7 Cabernet Sauvignon,” priced at just 6,900 won per 750-milliliter bottle. It is one of the “G7” series, which was created by E-mart in 2009 in partnership with Shinsegae L&B.
GS25’s top-selling wine is also a Chile wine that is directly imported by the convenience store chain. Named “Twenty-Five” after the franchise, prices of wine in this line start at just 9,900 won.
Lotte also jumped into the mix at the end of last year with the launch of its “Santa Rita L Wine” in December. Priced at just 6,900 won per bottle, the line is made up of three Chilean wines from Santa Rita Winery.
Wine has become more accessible not only in pricing, but also in packaging.
Wine brands are increasingly releasing cheap wines in nontraditional packaging such as easily disposable pouches.
Following this year’s fad of alcohol in paper packs or cans rather than heavy glass bottles, wine brands are experimenting with small, convenient containers.
This trend is especially apparent now, as the food and beverage industry is rolling out products to appeal to campers and tourists preparing for summer getaways
Yellow Tail has released the Yellow Tail 4-Color 187 package, which contains four 187-ml screw-cap bottles of wine in one pack -- shiraz, merlot, chardonnay and Semillon sauvignon blanc wine.
Korean brand Majuang came up with the Majuang Red Pouch, a 250-ml plastic pouch with a plastic screw top.
Such packaging eliminates the hassle of transporting glass bottles that can break as well as the need for wine openers and glasses, appealing to campers and those who just want to consume the beverage fuss-free.
By Won Ho-jung (
hjwon@heraldcorp.com)
