Taking Photos at Breweries and Including Owner Names on Domestic Wines... The Wine Passion of Jeong Yong-jin and Shin Dong-bin

Wine Market Continues to Grow... Annual Increase in Import Value
Expansion of Base and Changes in Drinking Culture Are Major Factors
Large Corporations Also Focus on Wine Market Growth Potential

[Asia Economy Reporter Song Seung-yoon] At one time, the domestic wine market was considered a barren land for wine. The alcohol culture centered on beer and soju was firmly established, and the infrastructure was not in place, so there were neither opportunities nor conditions to experience a variety of wines. The growth of the wine market was driven by first-generation wine importers, mainly small and medium-sized enterprises. However, recently, as large corporations have rushed into the wine market, the base has expanded and market competition has become increasingly fierce.

The reason large corporations are interested in the wine market is that, with the continuous growth of the domestic wine market, the wine business is recognized as a high value-added industry. According to customs import-export trade statistics on the 30th, the domestic wine import value from January this year to last month reached $534.05 million, already close to last year's total import value of $559.81 million. The wine import value, which was $330 million in 2020, grew by about 70% last year.

In particular, demand for premium wines is steadily increasing. From January to September this year, the import value of French wines, including Bordeaux and Burgundy Grand Cru wines, which are high-end wine regions, was $151.96 million, an 18.2% increase compared to the same period last year ($128.57 million). Similarly, the import value of American wines centered on California's Napa Valley, also considered a premium region, was $78.06 million during the same period, up 16.2% from $67.20 million in the previous year. Although both countries saw a significant increase in import value over one year, the import volume showed no meaningful change.

This was driven by the establishment of a home drinking culture triggered by COVID-19, the popularity of low-alcohol beverages that align with this trend, and increased consumer demand for various types of alcoholic beverages. The environment where wine can be easily accessed through smart orders and other means was created, and the establishment of general purchasing methods also played a role. Among the main consumer groups, the MZ generation (Millennials + Generation Z), a culture of enjoying delicious alcohol pleasantly rather than binge drinking has emerged as a trend, and wine, which has a relatively low alcohol content and a strong luxurious image, is analyzed to have responded well to this trend. Large corporations are competitively expanding their businesses due to this expansion of the wine market base. First-generation wine companies that have grown the wine market so far view this positively as a momentum for the market to grow into an industry. They also benefit from the expansion of sales channels such as new store openings.

Wine & More Yeoksam Centerfield Branch. / Photo by Shinsegae L&B

In particular, cases of companies directly acquiring wineries have increased significantly. This is considered an innovative direction as it enables direct manufacturing and production in the distribution process, which was previously import-based. The industry expects that acquiring wineries will not only enhance price competitiveness but also expand domestic demand for wine-related personnel.

There is also a side where group owners with a strong interest in wine have personally stepped up to strengthen their businesses. Chung Yong-jin, Vice Chairman of Shinsegae Group, known for his deep knowledge of wine, established the subsidiary Shinsegae L&B in 2008 to actively enter the liquor business and rose to the top of the wine industry. In February this year, Shinsegae Property led the acquisition of Shafer Vineyards, a U.S. winery, marking the first acquisition by a domestic distribution company. Vice Chairman Chung has frequently posted photos related to wine on social media, showing his affection for wine.

Shin Dong-bin, Chairman of Lotte Group, is also famous as a wine enthusiast. In the past, he personally managed the wine business by instructing employees to make Majang, the longest-standing domestic wine, using 100% domestic grapes. The premium domestic wine 'Majang Signature Korea Premium,' which reflects this will, is also known as the 'Shin Dong-bin Wine.'

Myung Wook, a liquor expert and professor of the Gourmet Culture Advanced Course at Sookmyung Women's University, explained, "Beyond simply drinking a lot of wine, the expansion of purchasing channels and the popularization of wine cellars and decanters in households have expanded the infrastructure, which has led to the stabilization of the wine market. The acquisition of wineries by companies is also common worldwide, and it shows that this industry can create high added value and is considered a worthwhile investment."

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