The Era of Small-Scale Craft Beer... SevenBroy Accelerates OEM and ODM Services
Published 20 Oct.2022 18:00(KST)
Iksan New Factory Operation in Full Swing... Accelerating OEM·ODM Business
First OEM Contract with Nonghyup and Agreement with Samsung C&T
Order Expansion Strategy by Lowering Minimum Order Quantity to 10,000 Cans
[Asia Economy Reporter Eunmo Koo] SevenBrew Beer is accelerating its original equipment manufacturing (OEM) and original design manufacturing (ODM) business as it fully operates its new factory in Iksan. Through the expansion of its OEM and ODM businesses, SevenBrew Beer plans to diversify its sales beyond its existing own-brand products and lower the market entry barriers, thereby contributing to the revitalization of the craft beer market.
According to industry sources on the 20th, SevenBrew Beer signed an OEM contract to supply 300,000 cans of ‘Belgian Witbier’ using ginseng, a local specialty, in collaboration with the Gimpo-Paju Ginseng Agricultural Cooperative by June next year.
This contract is the first OEM production order SevenBrew Beer secured since the full-scale operation of ‘SevenBrew IS (Iksan Factory)’ established in Iksan, Jeonbuk, in June. The Iksan factory can produce 27,000 kiloliters (kL) of beer annually, making it the largest single craft beer factory in South Korea, equivalent to 2.25 million boxes of beer.
Recently, SevenBrew Beer also signed an ODM contract with Samsung C&T. The product to be produced under this contract is the non-alcoholic beer ‘MarcariBe,’ which is served at the beach caf? ‘MarcariBe The Bayside Cafe 2.0’ inside the water park ‘Caribbean Bay’ of Samsung C&T’s resort division.
SevenBrew Beer plans to lower the minimum order quantity for OEM and ODM products at the Iksan factory to 10,000 cans to increase contract manufacturing orders from small-scale breweries. Small craft beer companies have faced limitations in producing canned products, which are the main sales items in the home market, due to constraints in raw material procurement and facility investment. To address this, the liquor tax law was revised last year to allow craft beer production through OEM, but the minimum order quantity of around 300,000 cans posed practical difficulties for small companies to engage in contract manufacturing.
SevenBrew Beer has equipped fermentation tanks of various sizes to enable small-batch production of multiple product types, responding to diverse company demands and maximizing factory utilization. Currently, the Iksan factory has 29 fermentation tanks of 10t, 20t, 50t, and 60t capacities, facilitating small-scale production. Additionally, shrink film facilities have been installed. The shrink facility prints films with desired designs and wraps them around cans, allowing production of only the required amount of film, enabling small product orders and reducing inventory burdens.
As SevenBrew Beer is negotiating OEM and ODM production contracts with multiple companies, it plans to expand its business through additional orders and maximize factory utilization. A SevenBrew Beer official stated, “We will continuously expand our OEM and ODM business and devote ourselves to developing product processes that quickly respond to market changes. We will also strive to contribute to market coexistence through cooperation with companies that require the craft beer industry’s greatest feature and strength: small-batch production of diverse products.”
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