"Nothing Is Left Unraised"...Beverages and Instant Coffee Join the Price Increase Trend

Beverage Prices Rise Nationwide on the 1st
Instant Coffee Prices Also Increase
Food and Beverage Industry "Cannot Bear Cost Burden"

[Asia Economy Reporter Song Seung-yoon] As the overall food prices continue to rise in a phenomenon dubbed "milkflation" (milk + inflation), beverage prices have also started a domino effect of increases. According to industry sources on the 1st, beverage companies simultaneously raised their product prices starting that day. Lotte Chilsung Beverage increased the prices of 10 beverage brands, including commercial-use Chilsung Cider and Pepsi Cola, by an average of 4% from that day. This included juice, coffee, and bottled water products such as Del Monte, Jeju Tangerine, Cantata, Lets Be, Icis, Evian, and Volvic. The prices of commercial-use Chilsung Cider and Pepsi Cola were raised for the first time in 1 year and 11 months.

LG Household & Health Care also raised the prices of four beverage brands?Powerade, Minute Maid, Toreta, and Monster?by an average of 6.1%. Dong-A Otsuka likewise decided to increase the prices of beverages such as Pocari Sweat by an average of 8.6% starting that day. The affected products include Pocari Sweat, zero-calorie Narangd Cider, Oran-C, Demi Soda (four types), and Oronamin C.

Instant coffee has also joined the price hike trend. Dongseo Food announced that it will raise the wholesale prices of instant coffee and coffee mix products by an average of 9.8% starting from the 15th. The price of Maxim Original Refill 170g will increase from 6,090 won to 6,680 won, Maxim Mocha Gold Coffee Mix 1.2kg from 12,140 won to 13,330 won, and Maxim Kanu Americano 90g from 15,720 won to 17,260 won.

Beverage companies cited international raw material price increases, the impact of a strong dollar, rising labor and logistics costs as reasons for the price hikes. With all related costs rising, the burden of production costs has reached an unbearable level. Companies that have not yet decided on price increases are internally reviewing the timing and extent of hikes while monitoring the situation.

An industry official said, "This price increase trend is expected to continue through the end of the year and into early next year," adding, "Although there are concerns about reduced consumption and consumer backlash, the prices of food and beverages are rising in a chain reaction, so we are watching the trend closely."

On the 20th, a citizen shopping at a large supermarket in downtown Seoul visited amid domestic ramen companies raising consumer prices one after another, citing poor performance due to rising raw material costs. Photo by Moon Honam munonam@