Whisky imports down nearly half in three years

[Getty Images Bank]
[Getty Images Bank]

South Korea's whisky market is shrinking, and the country's major importers are posting diverging results as they scramble to cut costs and lower prices to protect profitability.

Whisky imports from January through August this year totaled 12,205 metric tons, down 22.1 percent from the same period a year earlier, according to Korea Customs Service trade statistics. Compared with the January–August 2023 peak of 22,545 metric tons — when home-drinking culture that took hold during the COVID-19 pandemic drove a surge in whisky demand — imports have plunged 45.9 percent in three years. On an annual basis, imports peaked at 30,586 metric tons in 2023 before falling to 27,441 metric tons in 2024 and 22,582 metric tons in 2025.

Earnings among importers have diverged sharply. Pernod Ricard Korea, which carries brands including Ballantine's and Royal Salute, posted sales of 124.2 billion won ($92.7 million) for fiscal year 2026 (July 2025–June 2026), up 2.9 percent from the prior year, while operating profit slipped 4.3 percent to 14.4 billion won. Diageo Korea, best known for Johnnie Walker, saw sales fall 4.3 percent to 153.7 billion won over the same period, though operating profit rose 14.4 percent to 10.7 billion won as the company trimmed selling and administrative expenses. William Grant & Sons Korea, which closes its books in December, reported sales fell 5.3 percent to 96.1 billion won last year and operating profit plunged 23.2 percent to 33.7 billion won. Korea Brown-Forman also recorded a 10.8 percent decline in sales over the most recent 12-month period.

Pernod Ricard, the only major importer to grow sales, pursued an aggressive price-cut strategy. In March, the company reduced the ex-factory prices of Ballantine's Glenburgie 12- and 15-year expressions and The Glenlivet 12- and 15-year expressions by up to 13 percent. "The price adjustment was a decision aimed not at short-term profitability but at easing the financial burden on consumers and allowing more people to experience the quality and value of our products," the company said. "From a long-term perspective, we want to broaden the base of the domestic whisky market and support its sustained growth."

The market contraction is likely to persist for now. Sluggish consumer spending driven by high inflation and a weak real economy has been compounded by a growing health-conscious culture and declining alcohol demand linked to the rise of obesity medications. "The whisky demand that briefly spiked during COVID-19 has fizzled out, and more consumers are cutting back even on drinking at home — whether for health reasons or because they are on obesity medication," an industry official said.

In response, liquor companies are expected to intensify their efforts to shore up profitability. Diageo Korea replaced its CEO in July and carried out a voluntary redundancy program at the same time. Brown-Forman faces added pressure to defend its earnings after its global parent spent much of this year in merger and acquisition talks with Pernod Ricard, Sazerac and others.


spa@heraldcorp.com