"Exchange Rate Increase Reaches Unbearable Level for Cost Burden"
Lotte Chilsung Beverage will raise the wholesale prices of six beverage items, including Chilsung Cider, Pepsi Cola, Gatorade, Hot6, and Del Monte Juice, by an average of 6.9% starting from the 1st of next month.
According to industry sources on the 27th, the price of Chilsung Cider (250ml) sold at convenience stores will increase from 1,600 won to 1,700 won, and Pepsi Cola will rise from 1,500 won to 1,600 won, each going up by 100 won.
Juice products using imported fruit concentrates, whose international prices have surged, will see the prices of Del Monte Cold Orange and Grape 250ml products increase from 1,500 won to 1,600 won respectively.
This price increase comes after one year and six months since December 2022.
Lotte Chilsung Beverage explained that the reason for the price hike is that the cost burden of raw materials, which rely on imports, has worsened beyond a bearable level due to expanded oil price risks and the soaring won/dollar exchange rate (depreciation of the Korean won). They also emphasized that the import price of fruit concentrates, raw materials for juice products, has risen to an all-time high due to poor harvests of fruits such as oranges caused by abnormal weather and pests, and that the supply cost of major packaging (cans) and labor costs have generally increased.
However, the wholesale prices of some products of the essential daily item bottled water brand 'Isis' will decrease by an average of 10.3%.
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