'Byuldabang·Maxim' Price Hikes One After Another... Starbucks Americano 4100→4500 Won

Starbucks Korea Raises Prices of 46 Beverages by 100~400 KRW on the 13th
Dongseo Foods Increases Prices of Maxim, Kanu, etc. by 7.3% from the 14th
International Coffee Bean Prices and Logistics Costs Rise

[Asia Economy Reporter Lee Seung-jin] Coffee prices will rise in the new year. Starbucks Korea is raising prices for the first time in 7 years and 6 months, adjusting the price of a cup of cafe latte to 5,000 won. In addition, Dongseo Food is also raising prices, with the price of Maxim products, known as the 'national coffee,' increasing by an average of 7.3%.

According to the food industry on the 7th, Starbucks will adjust the prices of 46 beverages, including Cafe Americano and Cafe Latte, among the 53 types currently sold, by 100 to 400 won each starting from the 13th. This is the first price increase in 7 years and 6 months since July 2014.

With this increase, 23 beverages including Cafe Americano, Cafe Latte, and Cappuccino will rise by 400 won. Fifteen beverages such as Caramel Macchiato, Starbucks Dolce Latte, and Double Shot will increase by 300 won, seven beverages including some Frappuccinos will increase by 200 won, and one beverage, Dolce Black Milk Tea, will increase by 100 won.

The beverages with the largest price increases at Starbucks are the most popular products, so consumers are expected to feel a greater impact from the price hike. For a tall size, Cafe Americano will be adjusted from 4,100 won to 4,500 won, and Cafe Latte from 4,600 won to 5,000 won, making the prices of representative beverages around 5,000 won.

Starbucks cited the recent surge in coffee bean prices and the continuous rise in various raw material costs as reasons for the price increase. They also explained that various cost pressures, including increased international logistics costs due to COVID-19, have been continuously accumulating.

A Starbucks official said, "Over the past 7 years and 6 months, we have comprehensively reviewed various factors such as operating costs and economic indicators and reflected them in our pricing policy. There have been price increase factors every year," adding, "We have absorbed these internally so far through store operation efficiency and direct and indirect cost reductions."

Attention is also focused on whether Starbucks' price increase will lead to a domino effect among coffee specialty stores. When Starbucks raised prices in 2014, major coffee shops such as Coffee Bean and Caffe Bene followed suit. At that time, the price of Americano, which was in the high 3,000 won range, exceeded 4,000 won due to the price increase.

A coffee industry insider explained, "Recently, international coffee bean prices have nearly doubled, increasing cost burdens, and with the minimum wage increase in the new year, pressure to raise prices has grown. Since Starbucks, a representative of the industry, has raised prices, price increases at major coffee specialty stores are expected."

Meanwhile, the prices of 'Maxim,' the epitome of mix coffee, and 'Kanu,' instant ground coffee, will also rise. Dongseo Food will raise the wholesale prices of coffee products by an average of 7.3% starting on the 14th. This coffee price increase is the first in 8 years since July 2014. The wholesale prices of cereal products such as Corn Flakes will also increase by an average of 9.8%.

Accordingly, the wholesale price of Maxim Original 170g refill product will rise from 5,680 won to 6,090 won, a 7.2% increase; Maxim Mocha Gold Coffee Mix 1.2kg product will rise from 11,310 won to 12,140 won, a 7.3% increase; and Maxim Kanu Americano 90g product will rise from 14,650 won to 15,720 won, a 7.3% increase.

Dongseo Food cited the rise in major raw material prices as the background for the price increase. In fact, the international price of Arabica coffee beans soared from 113 cents per pound in 2020 to 230 cents in December 2021, a 103.5% increase. Palm oil, used as a raw material for coffee mix, rose 54.8%, and sugar rose 16.7% during the same period.

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