Soju Products Price Increase of 6.95% from November 9
Some Items Excluded to Ease Consumer Burden
Mutual Growth Fund Established to Minimize Burden on Small Business Owners and Partners
HiteJinro will raise the shipment prices of its soju products starting next month. Although the company had endured without raising prices in response to the government's request to curb inflation, it has made this decision after much deliberation due to the difficulty of withstanding the pressure from sharply increased raw material costs and various expenses. To reduce the burden on consumers, the company has minimized the price increase and also prepared support measures for customers such as self-employed business owners.
HiteJinro announced on the 31st that it will increase the shipment prices of its flagship soju brands, Chamisul Fresh and Chamisul Original, by 6.95% starting November 9. The price increase applies to 360ml bottles and PET containers under 1.8 liters. Products in PET containers over 1.8 liters, including traditional fruit liquors popular in rural areas, and Ilpum Jinro are excluded from this price hike.
A HiteJinro official explained, "Since the beginning of the year, the price of ethanol, the main ingredient of soju, has increased by 10.6%, and the price of new malt has risen by as much as 21.6%, causing significant cost increases across raw materials, logistics, and manufacturing expenses. We decided on the rate of increase in line with the government's efforts to stabilize prices and to minimize the burden on consumers."
Previously, Daehan Ethanol Sales, which handles ethanol sales for 10 domestic ethanol companies, raised ethanol prices by an average of 7.8% last year for the first time in 10 years, followed by a 9.8% increase in April this year. Additionally, bottle manufacturers for soju raised the price of bottles from 180 won to 220 won sequentially starting February this year. The price of bottle caps also increased at the end of last year.
HiteJinro plans to establish win-win measures to ensure that this price increase does not lead to a significant burden, such as a decrease in sales volume for consumers, self-employed business owners, and distribution channels. First, the company will supply sufficient quantities to liquor handling partners before the price increase so that they can stock up at pre-increase prices.
Moreover, various discount events will be held at large discount stores, corporate supermarkets (SSM), Nonghyup Hanaro Mart, and large individual supermarkets where consumers can directly purchase soju products. Through these efforts, the company aims to minimize consumers' perception of the price increase until the end of the year.
There will also be a grace plan for debt collection from liquor wholesalers. This is expected to continue the deferment of repayment for loans provided by liquor wholesalers to restaurants.
In addition, from the time of the price increase next month until the end of the year, HiteJinro will accumulate 30 won per bottle sold of Chamisul and Jinro. The funds raised will be used to carry out scholarship programs for children of restaurant owners, support health promotion gift certificates for restaurants, and expand return projects such as providing necessary supplies to business partners.
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