[Exclusive] Haagen-Dazs Raises Ice Cream Prices by 14% at the Start of the New Year

Haagen-Dazs Mini for 4,800 Won... Pint for 12,900 Won

Haagen-Dazs Ice Cream (Provided by Haagen-Dazs)

[Asia Economy Reporter Lee Seon-ae] Haagen-Dazs raised the prices of its ice cream sold at stores, convenience stores, and large supermarkets as of the 1st.

According to the industry on the 2nd, the price of Haagen-Dazs Mini increased by 14.3%, from 4,200 won to 4,800 won, and the pint price rose by 14.2%, from 11,300 won to 12,900 won.

Haagen-Dazs cited the rise in packaging and transportation costs due to increases in the main ingredients of ice cream and domestic and international inflation as the reason for the price hike.

Previously, Haagen-Dazs raised the pint price by 14.1% and the mini price by 7.7% on June 1, 2017.

At that time, a Haagen-Dazs official said, "Despite the burden of production costs, we have frozen domestic product prices for the past five years to minimize the burden on consumers," adding, "Please understand that this is a minimal price increase considering the continuous rise in production and distribution costs."

However, the Korea Consumer Organization Price Monitoring Center pointed out that Haagen-Dazs' price increase lacks justification and criticized the unfairness of each factor for the increase. According to the Price Monitoring Center, Korea Haagen-Dazs' sales in 2016 rose 68% compared to 2012, reaching 45.9 billion won, and the operating profit margin increased by 112% compared to 2012, reaching 14.7%. On the other hand, the cost of goods sold ratio steadily declined from 48.1% in 2012 to 42.6% in 2016.

The Price Monitoring Center evaluated, "The impact of domestic and international inflation and the increase in major raw material prices cited by the company is difficult for consumers to readily understand." In fact, prices of major raw materials such as dairy products and sugar significantly fell, contrary to Haagen-Dazs' claims.

Furthermore, the Price Monitoring Center added, "Pulp, which affects packaging costs, fell by 15.8% from $716.6 per ton in 2013 to $603.3 per ton in the first quarter of 2017, and polyethylene also dropped significantly from $1,435 per ton in 2013 to $1,085 in 2015, making the increase in packaging costs unconvincing," adding, "The ratio of transportation costs to sales is also minimal."

This content was produced with the assistance of AI translation services.