“Capture consumer hearts with the size of the bottle.”
The liquor industry, thirsty for differentiation, is waging a "capacity war." Amid intensified competition and economic downturn, companies are releasing products in various capacities that are noticeably different from existing offerings to attract consumers.
According to the liquor industry on the 11th, Seonyang Soju, a local soju company in Daejeon and Chungcheong, launched "Seonyang Oak," which mixes oak barrel-aged essence with diluted soju, at GS25 convenience stores on the 4th. This product is sold in a 640ml bottle, 78% larger than the standard soju (360ml).
The distribution industry refers to this as a reverse shrink strategy (逆shrink) which involves increasing the amount while lowering the average price. It contrasts with the concept of shrinkflation, which has been embroiled in controversy over "stealth price increases" by reducing quantity while keeping prices the same.
Seonyang Soju tested the sales of regular soju, which was not oak barrel-aged, in a 640ml large volume at GS25 in March last year. Based on convenience store pricing, a 375ml soju costs about 6 won per milliliter. The Seonyang Soju product increases the volume and lowers the price to 4.7 won per milliliter. According to Seonyang Soju, this product received positive responses from young consumers, and within 50 days of its launch, sales increased by nearly 95% compared to the first week.
◇ The secret of '7.2 glasses' in a 360ml soju bottle
The size of soju bottles has changed slightly over time. The current standard is 360ml. This has gradually decreased from 500ml in the 1980s and 375ml in the 1990s.
A 360ml soju bottle yields 7.2 glasses if poured into a 50ml soju glass. Industry insiders say that the ambiguous number of 7.5 glasses in one bottle stimulates the psychology of consumers to think "one more glass."
Some experts say that the current capacity of a soju bottle originated from the traditional Korean measurement unit 'hop.'
When Jinro Soju first emerged in 1924, a typical bottle of beverage on the market contained 2 hops (about 360ml). While the hop unit has disappeared and liters have become common, this capacity has remained unchanged.
◇ Smaller bottle, greater appeal... The counterattack of small capacities
Conversely, smaller capacities than the standard size can also attract consumers' attention depending on the type of beverage.
In the convenience store industry, a half-bottle (375ml) wine was introduced for single-person households in 2022. The year 2022 saw an increase in wine sales as the pandemic spread trends of solo drinking and home drinking.
However, many consumers found it difficult to drink an entire 750ml bottle of wine at once. Due to the nature of leftover wine changing in taste and aroma, it became common to dispose of the remaining contents after solo drinking.
Daesun Distilling, the oldest soju manufacturer in Busan, added convenience by selling wine in soju bottles. Since wine has a lower alcohol content than soju, consuming one bottle (360ml) of soju is less burdensome. The soju bottle can be easily twisted open by hand, eliminating the need to prepare a separate opener for corks.
Daesun Distilling imported Chilean wine and set a recommended retail price of 3,000 won at convenience stores.
Jo Woo-hyun, the CEO of Daesun Distilling, noted, "The 'half-bottle wine' was designed for the MZ generation pursuing practicality and fun, as well as for self-employed individuals wanting to sell wine without burden."
HiteJinro released a 200ml mini product called Chamiseul Pocket in 2021, targeting consumers enjoying outdoor activities like hiking or watching sports.
Before that, they introduced a Terra mini can (250ml). Currently, beers mainly come in 330ml, or American-style 355ml and 500ml products. The 12-ounce (355ml) standard used in the U.S. was adopted. The Terra mini can is about two sips less for an adult male than the standard product. It is suitable for women or those who drink less.
Japanese beer companies like Kirin and Asahi also sell products that are smaller than 250ml, including 135ml offerings.
◇ The economics of capacity changes... 'Management's tactical move'
In 18th-century England, which was the largest importer of French wine, the unit used was not the liter law but the 'imperial gallon' (about 4.54 liters). French merchants divided one gallon into 6 bottles, half a dozen, for shipping and accounting convenience.
The closer an object is to a square shape, the better its packaging efficiency. Currently, when packaging wine in units of 750ml six bottles, just two boxes can get close to a square shape. It is the most effective unit for loading one gallon into a given space. The unit has been used for calendars and time since Roman times, making calculations not difficult.
There is also a meticulous management strategy hidden within the changes in beverage capacity. Reducing product capacity may decrease overall consumption, but it increases purchase frequency. It also attracts new consumer segments who found the existing capacity overwhelming or insufficient.
However, changing popular beverage capacities involves significant expenses and challenges. Introducing new capacities requires revamping the container production line entirely. New filling equipment suitable for the container openings is also necessary. If not carefully restructured, it may violate quality control process standards such as Hazard Analysis Critical Control Point (HACCP).
The liquor industry is exploring various strategies tailored to consumer preferences, not only in terms of capacity but also in container materials and fonts.
An official from the Korea Liquor Wholesalers Association stated, “We are in an era where everyone drinks alcohol in their preferred way,” and added, “premium liquor will shift towards small high-end options, while mass-market liquor will focus on large capacity and cost-effectiveness, intensifying the phenomenon of ‘capacity polarization’.”