"Wine Segmentation and Variety of Alcohol Types" Three Years of COVID Home Drinking, How the Distribution Industry Responds

A customer is looking at wine in the liquor section of the Lotte Department Store main branch.

[Asia Economy Reporter Yuri Kim] As the population of 'home drinking' in the third year of COVID-19 diversifies, the retail industry, including department stores and large marts, is developing various responses. Some have established specialized liquor teams to proactively diversify their product lineup according to consumer trends, while others have set up specialty stores with tasting options to attract customers. They also periodically introduce wines with low domestic recognition by discovering them and offering products at affordable prices through prior planning.

Emart has selected the Australian 'Saint Hallett Barossa Shiraz' as this year's first 'Emart National Wine' starting from the 31st and has begun sales. The 'Saint Hallett Barossa Shiraz,' characterized by its deep ruby color and ripe cherry and black chocolate aromas, features smooth tannins and balanced acidity, making it a great match for richly sauced meats.

The Emart National Wine series, which started in 2018, is a project that selects wines undervalued in the market or with low domestic recognition based on taste and introduces them at prices ranging from 10,000 to 30,000 KRW per bottle. To price this National Wine at around $15 (excluding tax), the average overseas selling price, Emart has been conducting prior planning with local wineries through importers since July last year. Bulk orders at the container scale allowed a significant price reduction.

The share of mid-to-low priced wines under 30,000 KRW in Emart's sales increased from 63% in 2020 to 72% in 2021. The Dos Copas series, which gained attention as an ultra-low-priced wine around 4,000 KRW, has accumulated nearly 4.5 million bottles sold since its launch in August 2019. Emart plans to introduce a total of four National Wines quarterly this year.

Lotte Department Store will hold a 'Wine & Liquor Festa' at all its stores from the 1st to the 10th of next month. Moving away from the previous department store liquor events limited to wine, it will carefully select and showcase various liquor products, including whiskey. Approximately 15 billion KRW worth of various liquor types such as wine, whiskey, cognac, and sake have been prepared for this event.

More than 4 billion KRW worth of whiskey stock has also been secured. Single malt whiskeys such as Balvenie 30 Year Rare Marriages priced at 2.9 million KRW, Balvenie 21 Year The Second Red Rose, Glenmorangie Signet, and Macallan 12 Year Sherry Oak will be available. At the main and Jamsil stores, Balvenie DoubleWood 12 Year will be sold to the first three customers per store at 89,900 KRW. The wine selection ranges from rare, high-value limited edition wines to affordable wines suitable for casual enjoyment. Sake and cognac, which were hard to find at events, are also prepared.

Earlier this year, Lotte Department Store established the industry's first team-based specialized liquor organization to strengthen its liquor product category. Previously, one or two buyers managed the liquor product category across all stores, but in February this year, they formed a 'Wine & Liquor' team consisting of four MZ generation (Millennials + Gen Z) members, including sommelier Kyung Min-seok, a former head sommelier of a Michelin 2-star restaurant, to enhance expertise.

Lotte Mart's wine specialty shop 'Bottle Bunker,' which debuted at Zeta Plex Jamsil in December last year, has gained popularity mainly among the MZ generation, leading to nationwide expansion of stores. The second 'Bottle Bunker' store will open at Max Changwon Central on the 31st. Here, customers can find over 4,000 varieties of wines and whiskeys. In addition to the typical classification by country, curation is conducted under three themes: seasonal, food pairing, and moments. A tasting tap offering over 50 types of wines for sampling is also operated. Customers charge an amount onto a dedicated card and touch the card to a machine to sample 50ml of the desired wine. Prices per glass range from around 2,000 KRW to 55,000 KRW.

Homeplus also focused on 'The Wine Cellar' store, which stocks various liquor types such as wine and whiskey, while unveiling a renewed 'Mega Food Market' store last month with significantly enhanced food offerings. At the Ganseok store, about 1,200 types of wines are offered, ranging from entry-level wines to premium wines for enthusiasts. Whiskey is also prepared with around 16 types, mainly single malts. The Songdo store, with about 900 types of wine and whiskey products, saw whiskey sales increase by 490% compared to the same period last year just three weeks after its renewal opening.

This content was produced with the assistance of AI translation services.