Shinsegae,’Jeju Ju’ withdrew after 5 years… Beer business review

Shinsegae Group’s Jeju Juju, acquired in 2016, will be reorganized in 5 years.

According to related industries on the 4th, Jeju Juju, a subsidiary of E-Mart, held an employee briefing session the day before (3rd) and explained the reason for the withdrawal of the business and the subsequent processing procedures.

Jeoju-ju employees plan to move to E-mart or Shinsegae L&B, a wine importer, through individual interviews. Jeju Juju is currently halting production.

An official of Shinsegae Group said, “From last year, we have opened all the possibilities and reviewed various plans related to the Jeju Juju business. We decided to suspend the business in consideration of profitability and efficiency.”

Earlier, Shinsegae Group acquired Jeju Soju (pre-acquisition Jeju olesoju) for 19 billion won in 2016. ‘Blue Night’ Soju remained below expectations in the entire soju market. Jeju’s operating loss increased from 1.9 billion won in 2016 to 14.1 billion won in 2019.

Meanwhile, Shinsegae reportedly is considering a new beer brand. The name of the new beer is’Lets FRESH TODAY’, and it is known that it will be an overseas OEM (OEM) method. Shinsegae L&B has also applied for trademark rights for names and designs in February through a patent corporation.

It is reported that the new beer will be sold through E-Mart and E-Mart 24, centering on SK Happy Dream Baseball Stadium (Moonhak Stadium) in Incheon, which was recently acquired by SK Wyverns.