[Edaily Marketin YunJi Kim Reporter] Domestic craft beer companies, which once took convenience stores and bars by storm, are now undergoing restructuring or bankruptcy proceedings one after another. Although they expanded their operations by attracting outside investment and increasing production capacity amid the craft beer boom, their growth has stalled due to a combination of shifting consumer preferences and intensifying market competition. As sales have declined, the burden of fixed costs associated with capital investments has grown, and companies facing financial difficulties now find it difficult to return to stability even through a corporate sale.

Four Craft Beer Companies

File for Reorganization or

Bankruptcy… SevenBrew Begins Independent Reorganization Process

According to the Seoul Bankruptcy Court and industry sources on the 14th,

four

major craft

beer

companies—SevenBrew, Amazing Brewing Company, Y Brewery, and Wild Wave—have entered reorganization or bankruptcy proceedings between last year and the present.

Among them, SevenBrew, known for its “Gompyo Wheat Beer,” recently halted its sale process and shifted course toward independent restructuring. After filing for rehabilitation in May of last year, the company sought a new owner through a pre-approval merger and acquisition (M&A), but as the sale process dragged on, it decided on the 2nd of this month to halt the M&A efforts. This decision was made after determining that it would be difficult to finalize the sale by December 11, the deadline for approval of the rehabilitation plan.

SevenBrew’s financial difficulties deepened due to a combination of the expiration of the trademark license for its flagship product, Gompyo Wheat Beer, and a slump in the craft beer market. When the contract with Daehan Flour ended in 2023, the company could no longer sell products under its existing brand, leading to a decline in sales. In fact, SevenBrew Beer’s revenue fell from 12.4 billion won in 2023 to 8.487 billion won in 2024 and 6.831 billion won last year. Notably, the company built a large-scale beer production plant in 2022 when the craft beer market was booming; however, as sales subsequently declined, the burden of capital investment grew accordingly.

The deterioration in performance also affected the company’s financial structure. As of the end of last year, SevenBrew Beer’s assets totaled approximately 19.4 billion won, while its liabilities stood at approximately 30.5 billion won, placing the company in a state of complete capital impairment where liabilities exceeded assets. During the same period, the operating loss amounted to approximately 5.4 billion won, and the net loss reached approximately 12.7 billion won. In essence, the company found itself burdened by accumulated losses and debt while facing declining sales.

SevenBrew, which has suspended its sale process, is pursuing a turnaround by restructuring its debt while maintaining its existing corporate structure. The Seoul Bankruptcy Court has scheduled a meeting of interested parties for the 17th of next month to review and vote on the reorganization plan. Ahead of this meeting, the court has decided to close the shareholder registry from the 27th of this month through the 17th of next month to confirm which shareholders will participate in the reorganization proceedings. Securing the funds to repay debts—in addition to obtaining creditors’ consent to approve the reorganization plan—is expected to be key to restoring normal business operations.

It Expanded During the Boom, but… With the Market Slump, VC Funding Is Also at Risk

The rapid changes in the craft beer market are behind the growing number of companies facing difficulties similar to those of SevenBrew Beer. The domestic craft beer market grew rapidly in 2020 as the beer excise tax shifted to a volume-based system and collaborative products with convenience stores gained popularity. As demand rose, new companies entered the market, and existing players also expanded their production facilities and distribution networks by securing external investment. However, growth subsequently slowed as consumer interest shifted to other beverages, such as highballs, and competition with imported beers intensified. Even as sales fell short of expectations, it was difficult to reduce fixed costs—such as production facilities and labor expenses that had already been expanded—leading to deteriorating profitability.

Amid these market changes, Amazing Brewing Company is a prime example of a firm that went bankrupt. Founded in 2016, Amazing Brewing Company grew out of its Seongsu-dong brewery and attracted investment from domestic and international venture capital (VC) firms, including Altos Ventures. The company once pursued an initial public offering (IPO), but after entering rehabilitation proceedings in August of last year, it was unable to find a buyer and was declared bankrupt by the Seoul Bankruptcy Court in April of this year.

Amazing Brewing Company’s financial situation had already deteriorated significantly due to accumulated losses prior to the bankruptcy. In 2024 alone, it recorded a net loss of 2.9 billion won, causing its accumulated deficit to swell to 13.9 billion won. Although the company entered rehabilitation proceedings amid deepening financial difficulties, it ultimately failed to find a buyer. This led to bankruptcy, making it difficult for the venture capital firms that had funded the company to avoid losing their investments. Legal experts note that in bankruptcy proceedings, creditors are repaid first, and any remaining assets—if any—are distributed to shareholders; therefore, it is virtually impossible to expect a return on investment.

These companies are not the only ones facing financial difficulties. Y-Brewery, which supplies beer to the craft beer franchise “Bronx,” entered simplified reorganization proceedings in January of this year, and Wild Wave, a first-generation craft beer company in Busan, also filed for bankruptcy with the Busan Reorganization Court last April. In particular, Wild Wave had established a strong market presence with products such as its sour beer “Seolleim,” but as its financial difficulties persisted, it was forced to file for bankruptcy, just like other brands.