LOTTE Chilsung Beverage will end operations of two draft beer (KEG) products, Crush (20ℓ) and Kloud (20ℓ). The move is to focus on its core can and bottle lines and strengthen functional beer categories such as nonalcoholic beer.
On the 26th, according to LOTTE Chilsung Beverage, its flagship draft beer KEG products such as Crush and Kloud will no longer be produced. A LOTTE Chilsung Beverage official said, "This measure is limited to beer KEG products, and the company's other beer categories will operate as before," adding, "It is a decision to focus on the core beer categories of cans and bottles and to strengthen functional beers such as nonalcoholic beer."
The official added, "We have restructured the beer business area to repay customers with better products and services," and "We decided to end operations of the two KEG products to run an efficient business by concentrating on our main product categories."
This appears to be a decision made because it is no longer feasible to continue the business after consumption fell as consumer sentiment froze in the dining-out and nightlife markets, the main channels for the draft beer line, amid high inflation. This year, LOTTE Chilsung Beverage's cumulative third-quarter sales in the alcoholic beverages segment were 575.3 billion won, down 7.4% from the same period last year. Of that, domestic beer sales plunged 38.6% to 41.6 billion won.