As the slump in Korea's craft beer market continues, Busan-based craft beer brand Wild Wave has filed for bankruptcy with a court. Following a recent bankruptcy ruling for Seongsu-dong-based Amazing Brewing Company, first-generation craft beer companies are collapsing one after another.
According to the industry on the 12th, Wild Wave recently filed for bankruptcy with the Busan Bankruptcy Court and is proceeding with the related legal process. Founded in 2015 and beginning brewery operations in 2017, the company said losses piled up thereafter, deepening its management woes.
Wild Wave is regarded, along with Galmegi Brewing and Gorilla Brewing, as one of the craft beer brands representing Busan. It built a base of enthusiasts by introducing Korea's first sour and wild beers. Sour and wild beers are characterized by a stronger tartness or distinctive flavors than regular beer. Wild Wave gained recognition with its flagship beer "Seolreim."
The company has continued to invest to expand its distribution network. It expanded the size of its brewery and built canning facilities. In 2023, it opened a new brick-and-mortar store in Yeongdo, Busan, but the store closed at the end of November last year.
The domestic craft beer market, which grew rapidly during COVID-19, has recently shown signs of sharp contraction. As competition in convenience store craft beers overheated and drinking trends shifted toward highballs, profitability has been deteriorating, especially among small and midsize companies.
Earlier, Seongsu-dong-based Amazing Brewing Company received a bankruptcy ruling from the Seoul Bankruptcy Court on the 21st of last month. It came eight months after it began corporate rehabilitation in Aug. last year. Founded in 2016, Amazing Brewing pursued mergers and acquisitions (M&A) through the rehabilitation process but ultimately failed to find a new owner.
Sevenbrau, known for its Gompyopyo wheat beer, also filed for court receivership in June last year, and submission of its rehabilitation plan has been repeatedly delayed. Earlier this year, Y Brewery, which operates the craft beer franchise BHC Bro's, could not withstand poor earnings and entered rehabilitation in Jan.
Wild Wave CEO Kim Gwan-yeol said, "We have reached a point where the accumulated losses are no longer manageable," and added, "We intend to fulfill our responsibilities through legal procedures so as not to cause greater harm to wholesalers, partners, and investors."