Craft beer that once filled convenience store refrigerators is changing. Unlike the products that poured out to match past "4 cans for 10,000 won" promotions, collaborations have recently increased with domestic and overseas breweries well known among beer enthusiasts. Rather than relying solely on price competition, they are strengthening a strategy that puts beer brand value and fandom out front.
According to related industries on the 21st, the convenience store sector has recently rolled out a series of craft beers made in partnership with well-known domestic and overseas breweries. CU, operated by BGF Retail, released a product in collaboration with Mikkeller of Denmark, famous as a world-renowned gypsy brewery, and followed it with a product made with Seoul Brewery, which runs breweries in Seongsu-dong and Hapjeong in Seoul.
GS25 of GS Retail introduced a collaboration product with the Japanese craft beer brand Hitachino Nest and then released two beers together with the premium craft beer brand Original Beer Company (OBC). As the brand had previously sold only high-priced bottled products reminiscent of champagne or sparkling wine, the aim is to broaden consumer touchpoints by launching canned beer.
Prices range from 4,500 to 6,300 won. The Mikkeller and Hitachino Nest collaboration products sell for 4,500 won each, and the OBC collaboration products sell for 4,900 won. The Seoul Brewery collaboration products are pricier at 6,300 won. Although bundle discounts apply, the price for four cans is between 13,000 and 17,200 won, which is higher compared with past "4 cans for 10,000 won" promotion items.
Even so, these products are drawing notice because there are consumers who choose based on the brewery itself. During the craft beer boom in the COVID-19 period, products collaborating with breweries known at convenience stores and in local areas flooded the market, but many leaned more on the "craft beer" category itself than on the competitiveness of the brewery or the product.
Recently, however, they are putting front and center breweries that are highly recognized and reputed among beer aficionados, so-called "beer geeks." On beer-focused social media and online communities in Korea and abroad, products from Mikkeller, Seoul Brewery, and Busan's Gorilla Brewing sold at convenience stores were a hot topic for a while. Many also say the taste and overall execution of the products exceed expectations compared with the past.
The background for convenience stores shifting strategy like this is not unrelated to the craft beer market's failures. The domestic craft beer market, which grew rapidly during COVID, quickly slumped afterward. As convenience stores rushed to launch craft beers, the number of products increased, but it was difficult to differentiate from beers by major manufacturers, and many products were tied to "4 cans for 10,000 won" promotions, which hurt the profitability of corporations.
While the number of products increased, criticism mounted that there was a lack of differentiation in taste or quality, and breweries that had expanded investment aggressively faced worsening management woes, with some shutting their doors. Industry officials lament that as craft beer was consumed as a promotion item amid excessive price competition, it failed to be recognized at its proper price and its image was damaged.
Despite a period of slump, the reasons convenience stores cannot give up on craft beer are clear. With highballs and RTDs (ready-to-drink alcohol) gaining popularity, it has become harder to compete with only regular and imported beers. And as competition for exclusive and differentiated products among convenience stores grows more intense, there is an urgent need to find content that can secure loyal customers.
Craft beer is particularly well suited to this strategy. Although the fan base of a particular brewery is not large, loyalty is high enough that when a new product is released, they make preorders or visit stores in person to buy. From a convenience store's perspective, even if the scale is smaller than mass-market products, there is an advantage in being able to target a clear demand segment.
Still, many say it is too early to declare success or failure. Even within the industry, the recent changes are seen as closer to a restructuring process than a rebound of the craft beer market. If in the past the products were largely for promotions or for rounding out assortments, now convenience stores are in a phase of testing new possibilities for craft beer as differentiated products.
More consumers now scrutinize the character and story of the brewery, the maker, along with taste and quality, rather than simply the "craft beer" category. As the era of price competition symbolized by "4 cans for 10,000 won" fades, convenience store craft beer is shifting from how cheaply it can be sold to who makes it. Attention is on whether the value of craft beer, diluted amid price competition, will be properly recognized this time.
More consumers now scrutinize the character and story of the brewery, the maker, along with taste and quality, rather than simply the "craft beer" category. As the era of price competition symbolized by "4 cans for 10,000 won" fades, convenience store craft beer is changing direction to target segmented tastes and fandom rather than compete for mass appeal. Attention is on whether the value of craft beer, buried under promotions, will be properly recognized this time.