"Koreans Taken for a Ride" - Imported Whiskey Gets Even More Expensive Ahead of Chuseok

With major importers in Korea recently hiking up whiskey prices significantly, consumers are grappling with the burden of increased costs. Brands like Royal Salute and Glenfiddich have seen their prices rise by nearly 20% over the past year and a half. As whiskey gains immense popularity, every new release triggers a rush, allowing sellers to push prices higher under the assumption that buyers will still be present.

 

Meanwhile, the domestic whiskey market is experiencing explosive growth, primarily driven by consumers in their 30s and 40s.

 

On the 24th, Maeil Business News analyzed the sales prices of five major whiskey brands from early last year to the present day in a large supermarket. The results showed that Royal Salute 21 had the largest increase at 18.2%. This whiskey, which was purchasable in the 230,000 won range early last year, now demands over 270,000 won. In the same period, Glenfiddich 18 rose from 189,000 won to 218,000 won, while Ballantine's 17 increased from 140,000 won to 160,000 won. Prices for Chivas Regal 12 and Johnnie Walker Blue also rose by more than 10%.

 

Particularly, William Grant & Sons Korea, the importer of Glenfiddich 18, plans to raise the release price by an additional 7.2% starting from next month. Since whiskey typically has a margin of 10-20% when sold in various channels like marts and convenience stores, it's anticipated that consumer prices will similarly increase next month. Consequently, the price of Glenfiddich 18 is projected to rise by more than 20% in just under two years.

 

 

William Grant & Sons Korea will also raise the release price of their imported Ballvenie 12 DoubleWood whiskey by 4.5% next month. The current average domestic sales price of this whiskey is in the 130,000 won range, and with the upcoming increase, the consumer price is expected to rise to around 140,000 won.

 

In relation to this, Pernod Ricard Korea has twice raised the release prices of Royal Salute 21 and Ballantine's 17 last March and December. When the release price rises, consumer prices generally follow suit in various channels like large marts, supermarkets, and convenience stores for a few months. The recent increase in the price of Royal Salute 21 has drawn dissatisfaction among whiskey enthusiasts who feel that the already high prices are becoming even more burdensome.

 

 

Critics argue that import and distribution companies have hiked prices ahead of the Chuseok holiday to capitalize on the demand for gift purposes. A specialist in the alcoholic beverage industry with over a decade of experience noted, "While it's true that whiskey raw material and auxiliary material prices have risen, importers and distributors are using this as an excuse to excessively raise prices."

 

William Grant & Sons Korea, which plans to raise next month's release prices for key products, confirmed the price hike plan, stating that there is no additional explanation required for the reasons behind the increase. Established in 1886, William Grant & Sons is a prominent Scottish distillery company run by a fifth-generation family.

 

 

Meanwhile, the domestic whiskey market is experiencing explosive growth, primarily driven by consumers in their 30s and 40s. According to customs data, whiskey imports reached $266.84 million last year, a 52% increase from the previous year. In April, convenience store CU held a whiskey-exclusive sales event, with the age distribution of whiskey off-run buyers revealing that 30-somethings made up 33.4% while those in their 40s constituted 40.1%.