Raw Material Price Increase Leads to Moderate Product Price Hike
From the 1st of next month, the convenience store prices of certain products such as chocolate, gim (seaweed), sesame oil, and olive oil will increase.
According to the convenience store industry on the 24th, the price of four types of Nestl? chocolate sold in domestic convenience stores will rise by 20%, from 1,500 won to 1,800 won, effective July 1. Milka chocolate’s four varieties will also increase by 12.5%, from 3,200 won to 3,600 won, and Maeil Dairy’s three types of Hershey’s drinks will go up by 14.3%, from 1,400 won to 1,600 won.
The prices of some sesame oil and olive oil products will also rise. CJ’s 'Baeksul Sesame Oil 330㎖' will increase by 15%, from 11,900 won to 13,700 won, and 'Gosoham Gadeuk Sesame Oil 110㎖' will also rise by 15.7%, from 5,100 won to 5,900 won. The price hike for olive oil products is even greater. CJ’s 'Baeksul Olive Oil 500㎖' will increase by 33.9%, from 12,400 won to 16,600 won, and 'Baeksul Pure Olive Oil' will rise by 34%, from 13,800 won to 18,500 won.
The prices of gim (seaweed) products will also increase one after another. CJ’s 'Sesame Oil & Perilla Oil Gim 12 packs' will rise by 12.5%, from 9,600 won to 10,800 won, and Dongwon’s 'The Crispy Yangban Gim' will increase by 25%, from 800 won to 1,000 won. Prices of some meat products will also go up; CJ’s 'Charcoal Grilled Galbi Flavor Frank 120g' will increase by 12.1%, from 3,300 won to 3,700 won. Jangchung-dong brand’s 'Chewy Pyeonyuk' will rise by 8.7%, from 6,900 won to 7,500 won, and 'Boneless Jokbal Pyeonyuk Set' will increase by 5%, from 11,900 won to 12,500 won.
The price hikes for these products are due to the recent upward trend in raw material costs. Cocoa, the raw material for chocolate, has seen a sharp price increase recently due to poor harvests caused by climate change and other factors. Olive oil prices have also risen as olive production in Spain, a major olive-producing region, has decreased due to abnormal high temperatures. Additionally, the sustained high exchange rate has increased the import costs of raw materials. Gim prices have also risen as the production of raw gim in major producing areas such as Wando, Jeollanam-do, has decreased due to rising water temperatures. This year, the price of raw gim is reported to be double that of last year.
Meanwhile, some beverage products are also joining the price increase trend. Namyang’s '17 Tea' will increase by 11.1%, from 1,800 won to 2,000 won, and Miero Fiber 210㎖ will rise by 13.3%, from 1,500 won to 1,700 won.
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