Marketing strategy

New Collaboration Marketing Strategy in Korean Alcohol Industry

A product image of “Kooksoondang Chilsung Maksa”, a collaborative product between Lotte Chilsung Beverage and Kooksoondang Brewery (Kooksoondang Brewery)

Food companies are looking to cooperate within the industry to appeal to the younger generation which has become an important consumer demographic.

Lotte Chilsung Beverage, the beverage unit of South Korean conglomerate Lotte Group, announced on Friday that it will launch a makgeolli-flavored soft drink product in collaboration with Korean traditional liquor company Kooksoondang Brewery, starting Wednesday. .

Makgeolli cider, or “maksa” for short, is a cocktail of Korean rice wine called makgeolli and a lemon-lime flavored soft drink that Koreans often call “cider.”

This is not the first time that a maksa product has been marketed. It was previously launched in 2021 by South Korean retailer GS25 and in 2016 by another local retailer Homeplus.

A makgeolli milkshake advertising poster launched in collaboration between SPC Group and Seoul Jangsoo (SPC Group)

Korean food company SPC Group also said on Thursday that it has teamed up with traditional Korean brewery makgeolli Seoul Jangsoo to launch a non-alcoholic makgeolli milkshake through the Paris Baguette brand of cafe at SPC Group’s bakery.

“Makkeolli is being rediscovered among Millennials and Gen Z as a trendy drink,” a Paris Baguette manager said, referring to customers in their 20s and 30s.

“We will continue to collaborate with various brands to deliver special experiences for our millennial and Gen Z customers,” the manager added.

Meanwhile, local liquor company HiteJinro launched a soju-based popsicle the same day in collaboration with Korean food company Binggrae.

The popsicle is part of HiteJinro’s Isultoktok brand, a line of low-alcohol soju drinks.

“The limited-edition product was created to meet the needs of Millennials and Gen Z customers who want to experience pleasure and novelty through their consumption,” an official at HiteJinro said.

Companies are leveraging new product launches and business-to-business collaborations as part of their marketing strategy to target Millennials and Gen Z consumers who have emerged as an important consumer group in the food market, according to insiders at the industry.

“The food industry no longer pursues profitability alone, but now finds novelty, emotional appeal and the ‘fun factor’ more important,” Professor Lee Chae-eun of Kwangwoon University said in a recent report. Big Data Analytics published in February.

“Collaborative products that add fun by sticking retro labels on new products seem like a new business strategy.”

By Lee Seung-ku ([email protected])