Spirits market turns to lighter alcohol

The spirits market is showing a notable rise in sales in the low-ABV category this holiday season, as South Koreans increasingly celebrate with lighter drinks and smaller gatherings.

Since last year, Korea has seen a surge in demand for liquor with low alcohol by volume. Whiskey companies have also been releasing options for consumers who shy away from heavy drinks. 

Targeting the holiday season, Diageo rolled out a new drink, W Signature 12, with a 35 percent ABV, which sold more than 100,000 bottles in its first month of sales.

According to industry estimates, the proportion of low-ABV drinks in the whiskey market rose from 32.9 percent in 2016 to 41.5 percent in the first half of 2017.

Furthermore, low-ABV drinks and beer have seen growing demand at convenience stores, as younger Koreans increasingly prefer small parties at home or drinking at tables outside of convenience stores over expensive bars, according to industry watchers.

Drinking at convenience stores, or “pyeon-maek” in Korean, has become popular thanks to the low price of imported beers that are sold at 10,000 won ($9) for four cans.

These trends are also being supported by drinks companies, which are working to promote responsible drinking habits and reduce social harm caused by alcohol.

As the chair of the Responsible Drinking Alliance Korea, which includes multinational drinks companies as its members, Diageo has been running an awareness program called DRINKiQ that has trained more than 10,000 people at businesses, government agencies and public institutions.

Diageo also runs an internal program called “Drink Positive” that seeks to align the company’s values of responsible drinking with the actions of its employees. Across its global operation, Diageo is emphasizing the importance of responsible drinking to both its employees and consumers. By Won Ho-jung (hjwon@heraldcorp.com)