Japanese Breweries Attempt to Regain Foothold in S. Korea Through Price Cuts

South Korea used to be the biggest overseas destination for Japanese beer before the trade row. (Yonhap)

SEOUL, Nov. 24 (Korea Bizwire) — After going through a complete collapse amid the ‘No Japan’ boycott campaign in South Korea, Japanese breweries are striving to regain a foothold through price cuts.

Lotte Mart, the hypermarket chain operated by Lotte Shopping, is now holding a promotional event selling four cans of Asahi beer that its affiliate Lotte Asahi Liquor Co. is importing and distributing for a price of 10,000 won (US$8.99).

Prior to the No Japan boycott campaign that led to a plunge in sales of Asahi beer, it ranked No. 1 in South Korea’s import beer market, with a 500-milliliter can being sold at a price of more than 3,000 won.

This promotional event came after Lotte Asahi Liquor reduced its supply price.

Convenience store chains such as 7-Eleven and CU are also selling some Japanese beer at a per-can price of 2,500 won.

In addition to Asahi beer, CU lowered the selling price of the Pilsner Urquell and Kozel brands that Japan’s Asahi Group Holdings recently acquired to 2,500 won. At some GS25 stores, Asahi beer is now being sold at a price of 2,500 won.

“Importers of Japanese beer are proposing lower supply prices since sales of Japanese beer are so low,” an official from a large discount store said.

Ashley Song (ashley@koreabizwire.com)