Diageo to reignite Korea's whisky market
By Lee Hyo-sik
Cho Kil-soo, Diageo Korea CEO
Diageo Korea will change the whisky industry by appealing to the younger generation and introducing innovative products geared to young tastes, according to company CEO Cho Kil-soo.
Cho said the Korean unit of the world’s largest premium whisky maker will improve consumer perceptions of hard liquor and create a casual drinking culture in which people of all ages can enjoy whisky anytime, anywhere.
“Diageo Korea believes that the whisky market can rebound from its current slump,” the CEO told reporters Friday. “We can learn from Japan where the whisky market has been growing again since 2009. We will play a significant role in revitalizing whisky in Korea as an industry leader.”
According to Cho, who also oversees Diageo’s operations in Japan, sales of whisky there were on the decline until 2008 after peaking in 1988. But the consumption of hard liquor in Japan began picking up in 2009 and has since been growing steadily. In contrast, Korea’s whisky consumption plunged 38 percent last year from 2008.
“We think that for the past few years, Korea has been experiencing what Japan did in the 1990s and the 2000s. If we can repeat what Japanese whisky makers did, we can jumpstart Korea’s sluggish market too,” he said. “Japanese companies have made every effort to offer their customers the correct information about their products, helping them become more familiar with whisky. So, Japanese people, both young and old, enjoy whisky at home and at other informal places.”
However, about 90 percent of whisky is consumed at restaurants, bars and other establishments in Korea, creating the public perception that hard liquor should be consumed in formal, business-like settings. But in Japan, only 50 percent of the hard liquor consumed there is sold at drinking establishments, with the other half consumed at home and other places.
“What we are trying to do is to change this notion in Korea. We would like to see consumers feel free to enjoy our whisky whenever and wherever they feel like it,” Cho said. “Diageo will diversify its lineup of products and introduce varieties that allow consumers to experience our premium products in various places at more reasonable prices.”
As part of these efforts, the company plans to introduce a 200-milliliter bottle of Johnnie Walker in October, making one of its flagship brands of Scotch whisky more readily available and affordable for its fans. Normally, whisky is sold in 450-milliliter or larger bottles.
“We believe that introducing a small-size bottle will bolster the sale of Johnnie Walker because people, particular those in their 20s, can enjoy it without feeling much of a burden,” the CEO said. “As an industry leader, we feel a great responsibility to reinvigorate Korea’s whisky market. As we did in Japan, we will continue to take innovative steps to get closer to our Korean customers and create a consumer-oriented whisky culture.”