Nescafe, Coffee and Other Product Prices Adjusted by an Average of 8.7%

[Asia Economy Reporter Seungjin Lee] Lotte Nestle Korea announced on the 18th that it will raise the average ex-factory price of all products, including the global coffee brand Nescafe, by 8.7%.

Nescafe explained that this reflects factors such as the surge in international coffee bean prices since last year, increased logistics and raw material costs due to COVID-19, and rising labor costs. This is the first price adjustment for Nescafe coffee since 2014.

Nescafe stated, "Until now, we have absorbed the increase in raw material costs through internal cost reductions such as improving production plant efficiency and establishing logistics systems to provide consumers with good quality coffee at reasonable prices. However, due to the recent rapid deterioration of the coffee market situation, we have decided to adjust prices."

Meanwhile, Nescafe plans to accelerate the application of responsibly sourced coffee beans as part of the ‘Cup of Respect’ campaign, which aims for sustainable growth of coffee farms and the environment, to deliver higher quality products and value to consumers. Responsibly sourced coffee beans refer to beans grown ethically and responsibly in cooperation with global coffee farms and local communities.

A Nescafe representative said, “Through the Cup of Respect campaign, we will continuously supply high-quality responsibly sourced coffee beans and make greater efforts to maintain the sustainability of the coffee industry.”