Korean breweries seek to capitalize on global makgeolli boom

Kook Soon Dang Co.’s 100 billion probiotics makgeolli. [Courtesy of Kook Soon Dang]

South Korean breweries of makgeolli, traditional sweet fermented rice wine, are expanding their overseas presence on the back of growing demand after the pandemic.

According to industry sources on Sunday, makgeolli brewery Kook Soon Dang Co. saw its makgeolli exports nearly double to 13.7 billion won ($10.2 million) last year from 7 billion won in 2019. Kook Soon Dang is the largest exporter of makgeolli.

“Exports soared after the pandemic,” said an unnamed official from the company. “It comes partly as we put emphasis that our products contain many probiotics that help boost the immune system.”

Kook Soon Dang has been a pioneer in makgeolli exports since it introduced canned makgeolli in 1993. The brewery currently sells the fermented drink in over 50 countries, with the U.S. being its largest export destination.

Exports to the U.S. surpassed $3 million last year, accounting for about 30 percent of the entire exports.

Kook Soon Dang is expanding exports to other regions such as Central and South America, including Brazil and Mexico.

Jipyeong Jujo Co., another prominent makgeolli brewery, completed the construction of a large-scale factory in Cheonan, South Chungcheong Province, in May. It plans to commence makgeolli exports by the end of this year.

The company has plans to not only ship makgeolli to Asia such as China, Japan, and Southeast Asia, but also to the U.S. and Europe.

“While our initial focus was on the Asian market, the enthusiastic response from European buyers towards Korean makgeolli during a global food expo at the end of last year prompted us to broaden our target export regions,” said a representative from the brewery.

Seoul Jangsoo Co. is another player that exports a variety of products, including Jangsoo Makgeolli, to approximately 30 countries, including the U.S., Australia, China, and Japan. Operating under the Seoul Takju Association, the brewery has been exporting makgeolli since 2010 and seeing an average annual growth rate of 8 percent in exports over the past five years.

Various brands of makgeolli are displayed on the left side of the liquor section at a mart in Seoul. [Photo by Choi Jae-won]

The brewery saw a 41 percent surge in exports last year, primarily attributed to its new makgeolli infused with yuzu, or citrus juice.

The brewery also launched exports of its sweet and fizzy makgeolli product to the U.S. in February.

While the domestic makgeolli market has remained in the mid-40 billion won range over the past five years, makgeolli exports have grown by over 20 percent compared to the period before the pandemic.

According to data from Korea Customs Service, makgeolli exports in the past year amounted to 15,396 tons, up 20.6 percent from 12,772 tons in 2019.

In the first half of this year, makgeolli exports reached about $7.3 million, up 23.8 percent from the first half of 2019.

“The consumption of makgeolli by foreigners that were not able to visit Korea during the pandemic has surged significantly,” said an industry insider.

Companies in other sectors, in the meantime, such as fried chicken and craft beer, are also exploring makgeolli production.

Kyochon Food & Beverage Co., the operator of the fried chicken franchise Kyochon Chicken, has been offering its own makgeolli at a popular local Korean pancake place in Gwangjang Market, Jongno District, central Seoul, since July.

The company made its debut in makgeolli brewing following its acquisition of a traditional liquor brewery in 2019.

Some craft beer manufacturers are also delving into makgeolli production to tap into new avenues for growth amid the waning trend in craft beer since last year.

Craftbros Brewing Co. recently unveiled plans to introduce its own makgeolli product.