South Korea’s leading craft beer maker Jeju Beer Co. aims to be among the country's top four breweries by the end of 2022, planning to use its initial public offering proceeds to boost operations and increase its market presence, said Moon Hyuck-ki, the company's chief executive during a media roundtable on May 10.
Founded in 2015 on Jeju, Korea's largest island, Jeju Beer specializes in producing, importing and distributing craft beer. It was the first company in the country to augment the production facility of craft beer in hopes of making it more popular and accessible to Korean consumers.
In 2017, Jeju Beer introduced a series of new wheat beers including Jeju Wit Ale, Jeju Pellong Ale, and Jeju Slice, which all used the peel of gamgyul, a citrus native to Jeju, to create a unique flavor.
The company has been posting strong growth, with its share of the craft beer market surging from 5.1 percent in 2017 to 28.4 percent in 2020. Its revenue has also enjoyed a steep rise, logging an annual average growth rate of 147.9%. Last year, Jeju Beer posted 33.5 billion won ($30 million) in sales.
"We have also begun developing lager, which accounts for over 80 percent of Korea’s beer market. By the end of 2022, we hope to tap into the lager market and cement Jeju Beer’s position as the nation’s best craft brewery, becoming one of the top four breweries in the country," said Moon.
Moon also shared plans to accelerate Jeju Beer’s entry into the global beer market. In March 2019, the company began exporting its craft beers to Taiwan, Thailand, India, Hong Kong, Singapore and China. The company exported around $86,000 and $102,000 worth of craft beers in 2019 and 2020, respectively.
The company will continue to foster its overseas business by utilizing the global distribution network secured through its partnership with Brooklyn Brewery.
"We plan to target China, which is the world's largest beer producer and consumer, as well as the Southeast Asian market, which boasts an impressive beer market four times larger than the Korean market," said a Jeju Beer official.
Jeju Beer will be making a trading debut at the end of this month. The company plans to sell around 8.37 million shares, or 15% of its total holdings, with the proposed price band set between 2,600 won and 2,900 won.
The company seeks to raise up to 24.2 billion won via the listing. Daishin Securities is the IPO manager. The public subscription is scheduled for May 13 and 14.
