Following Consecutive Soju Price Increases... Restaurant and Bar Selling Prices Also 'Stirring'

Soju Industry Price Increase Domino Effect Raises Restaurant Selling Prices
Consecutive Price Hike Announcements Starting with HiteJinro

[Asia Economy Reporter Song Seung-yoon] As the price of soju rises, the selling price of soju at restaurants and pubs is gradually increasing.

According to the industry on the 26th, as soju companies recently announced consecutive price hike policies, the price increase of soju sales at restaurants and pubs has become full-fledged. Some restaurants have started raising the selling price of soju products by about 500 to 1,000 won. Some places decided to freeze the selling price despite the price increase due to concerns about a decrease in customers or to gradually raise the restaurant selling price after exhausting existing inventory for a while.

Jo Byung-kyu (38, pseudonym), who runs a Japanese-style pub in Yangcheon-gu, Seoul, said, "As the factory price of soju increased, the wholesale price also rose, and this leads to an increase in the selling price. For now, we will use up the inventory, but eventually most self-employed people will have no choice but to gradually raise prices."

[Image source=Yonhap News]

The domino effect of price hikes in the soju industry began with Hite Jinro. Since the 23rd, Hite Jinro raised the factory shipment price of Chamisul Fresh and Chamisul Original by 7.9%.

Following this, Muhak and Bohae Brewery also joined the price hike trend. Muhak will raise the shipment price of 'Good Day' and 'White' by an average of 8.8% starting from the 1st of next month, and Bohae Brewery will raise the shipment price of 'Ipsaeju', 'Yeosu Night Sea', and 'Bokbadeun Brother' by an average of 14.6% starting from the 2nd of the same month. 'Bohae Soju' will increase from the 16th. Jeju Island's local soju, 'Hallasan Soju', also decided to raise prices. Hallasan Soju will raise the price of ‘Hallasan Soonhan 17 (360㎖)’ from 1,081 won to 1,168 won per bottle and ‘Hallasan 21 (360㎖)’ from 1,186 won to 1,285 won by 8% and 8.3%, respectively, starting from the 3rd of next month.

Lotte Chilsung Beverage will raise the factory shipment price of some soju products such as 'Cheoeumcheoreom' and 'Cheongha' by an average of 7.2% starting from the 5th of next month. Specifically, 'Cheoeumcheoreom' bottle products will increase by 7.7%, PET (640㎖) by 6.7%, 'Cheongha' by 5.1%, 'Baekhwaseubok' 1.8ℓ by 7.0%, 700㎖ by 7.1%, and 180㎖ by 7.4%. 'Seoljoongmae' and 'Myeongga' will also increase by 7.0%.

Recently, the rise in costs involved in product manufacturing, including the price of ethanol and bottle caps, has been a factor in the price increase. Daehan Ethanol Sales raised the price of ethanol by an average of 7.8% from the 4th, and the taxed ethanol price per drum (200L) increased from 363,743 won to 391,527 won, a 7.6% rise. The untaxed and duty-free price increased from 351,203 won to 378,987 won, a 7.9% increase. In addition, bottle cap companies such as Samhwa Crown and Sewang Metal Industry raised the price of bottle caps by an average of 16% on the 1st. Furthermore, with increases in empty container deposits and handling fees, the manufacturing cost burden has grown.