Distributor Trashes Inventory of Beer Worth Almost $376,000 After Contract Dispute With Carlsberg

(Photo: Ella Baxter/Unsplash)

Last week, Busan-based alcohol distributor, Golden Blue tossed its inventory of Carlsberg products worth 490 million won (about $376,000) in the latest development relating to an ongoing dispute between the two companies. GoldenBlue claimed its Danish partner committed an act of gapjil (abuse of power) after the “unilateral” termination of its contract with the distributor in March 2023. 

GoldenBlue is a South Korean whiskey producer as well as distributor of imported liquor. It entered into an import and distribution contract with Carlsberg Group in April 2018. In March, Carlsberg abruptly ended its almost five-year partnership when it served a contract termination notice. The Korean liquor company believes Carlsberg’s actions go against Fair Trade Commission (FTC) rules. 

“As the dispute after halting the distribution of Carlsberg products hasn’t been resolved, and with ongoing expenses like storage costs causing further losses, we had no choice but to dispose of all remaining Carlsberg product inventory,” a GoldenBlue spokesperson said according to Korea JoongAng Daily. 

Golden Blue alleges that Carlsberg misled the company about their long-term partnership.

“We have elevated the Carlsberg brand from the Top 15 to the Top 10 position among imported beers in Korea through substantial investments, including new hires and the establishment of a Beer and Spirits division,” a company spokesperson stated. “While the Carlsberg Group did not disclose a reason for terminating the partnership, we believe that the group misled us by initially appearing to secure long-term contracts while in the end entering the domestic market through its own entity.”

Carlsberg reportedly ended the companies’ initial import and distribution contract in 2021. Afterward, GoldenBlue continued to work with the Danish-based group through short-term contracts with periods limited to two to three months. This practice continued until Nov. 2022 which coincided with Carlsberg setting up its own South Korea office a month prior. 

In July, Golden Blue filed a complaint with the FTC against Carlsberg Group. The lawsuit claims unfair practices including the refusal to trade and forced sales targets. An investigation by the FTC began in September. 

“We hope for the eradication of such cases of gapjil by global companies,” GoldenBlue said. “We will seek measures to prevent recurrence as a Korean company that has suffered damage.” 

It is a shame that so much beer was essentially wasted when some beer companies appear to circling the drain in the United States from controversies like Bud Lite and their losses after conservative outrage over the Dylan Mulvaney partnership. 

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