Wine sales falling as economy sobers

Over the last few years, wine has become more approachable to everyday consumers here, but the recent economic slowdown is reversing the trend.

Korea is importing less high-end products including wine, whisky and luxury foreign cars, according to a report by the Korea Customs Service last Sunday.

This November, the country imported 1,695 tons of wine, compared to last November’s total of 2,241 tons.

The respective import totals decreased 31 percent during the period, from $14.5 million to $9.98 million.

In October, wine imports tallied $9.5 million. The last time the total value of imports fell below the $10 million mark was in June 2007.

“Wine consumption is influenced greatly by the economy because it is still a relatively luxurious item in Korea,” said Jung Jae-wuk, a manager at Shinsegae Department Store.

He said that this year, the average wine spending per person in one visit to Shinsegae’s wine corner was around 35,000 won ($24.14), compared to 50,000 won last year.

“Our mid- to low-priced wines [below 100,000 won] are doing especially well, as more customers prefer cheaper wine these days,” he said.

Growth for wines with price tags below 100,000 won was at 48 percent on-year during the latter half of this year.

Wine above 100,000 won saw a growth of 2.1 percent during the same period.

Two of the top sellers in Shinsegae’s wine department are Montes Malbec, which goes for 19,000 won, and Rocca Cerrina Moscato D’Asti, which is sold for 29,500 won.

This is a complete turnaround from just a year ago, when the amount of wine imported to Korea rose 17 percent from 2006, and the average cost per bottle increased 31 percent.

“The wine boom started to become very evident two years ago, but it peaked last year,” said Yun Hyun-sik, a manager at Lotte Department Store.

In 2007, Winenara, one of the biggest wine distribution companies in Korea, said that over the past three or four years, higher-priced wines had become their best sellers.

“This year wines from Italy and the U.S. in the 40,000 won to 50,000 won range are doing particularly well,” said Lee Hyun-min, a manager at A-Young Fortune Brand Company, a local wine importer.