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Domestic craft beer makers, who are in crisis of death due to the novel coronavirus infection (Corona 19), have requested the government to allow online sales of craft beer. It is argued that sales outlets such as offline restaurants and beer specialty stores, which have been major retailers so far, are blocked by business restrictions, and that they open a retailer online.
The Korea Craft Beer Association issued a statement on the 8th and asked the government to “allow the online sale of craft beer for the survival rights and industrial protection of small beer makers driven by life and death”
According to the association, sales of small-scale craft beer companies have fallen sharply due to business restrictions at restaurants and beer specialty stores, which were major retailers due to Corona 19. It is explained that the reason why handmade beer has grown after the change in the volume tax in the beginning of last year is limited to very few companies that can supply products to distribution channels such as convenience stores.
The association explained, “(Sales of small businesses since Corona 19) have decreased by at least half and up to 90% compared to the same period last year.”
As a result of the association’s survey of 41 craft beer companies, more than half of 23 are currently undergoing paid and unpaid vacations and restructuring. Twenty-four have applied for tax deferral such as VAT and liquor tax.
Photo = Provided by BGF Retail
The association said, “The government is discussing ways to compensate for the loss of self-employed people, but the support target is limited to small business owners, so there is a high possibility that it will not be of little help to small craft beer companies.” “You need to allow small beer makers to sell online so that they can be self-sustaining.”
The craft beer industry has asked for permission for mail-order sales like traditional liquor. Currently, the liquor tax law prohibits the sale of alcohol over the Internet or over the phone. However, in July 2017, the government issued an exceptional mail-order license to foster traditional liquor.
The association is demanding that the regulations be lifted in Korea, even when it comes to overseas cases.
The association said, “In Japan, breweries with a size of less than 3000kL are allowed to sell online, and some countries such as the United States have urgently allowed online sales for small beer makers. “The best way to secure it is to allow online sales.”
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