Price Increase Starting on the 17th
"Limit Reached Due to Rising Raw Material Costs"
Nongshim is raising the prices of some products, including Shin Ramyun and Saewookkang.
On the 6th, Nongshim announced that starting from the 17th, it will increase the ex-factory prices of 17 brands out of a total of 56 ramen and snack brands by an average of 7.2%. This price increase comes after two and a half years since September 2022.
The items subject to the increase include 14 out of 31 ramen brands and 3 out of 25 snack brands. The main products' price increase rates based on ex-factory prices are Shin Ramyun 5.3%, Neoguri 4.4%, Ansungtangmyun 5.4%, Chapagetti 8.3%, Saewookkang 6.7%, and Jjolbyeong Snack 8.5%. Actual retail prices may vary by distribution store.
The prices of Shin Ramyun and Saewookkang will be restored to their previous levels. Earlier, in July 2023, under government pressure to lower prices, Nongshim had reduced Shin Ramyun from 1,000 won to 950 won and Saewookkang from 1,500 won to 1,400 won.
A Nongshim official stated, "We have endured the pressure to raise prices by pursuing cost reduction and management efficiency, considering the impact on consumer prices, but due to rising raw material costs and exchange rates, price adjustment has become urgent. We made this decision quickly before business conditions worsen further."
The purchase costs of palm oil, starches, and soup ingredients, which account for a significant portion of ramen production costs, have increased, along with average exchange rates and labor costs. Nongshim's quarterly operating profit margin (on a separate basis) has continuously declined, recording 1.7% in the fourth quarter last year.
Meanwhile, to minimize the burden on consumers from this price increase, Nongshim plans to continue discount and promotional events for major ramen and snack products at large supermarkets, convenience stores, and e-commerce sales channels.
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