Dongsuh Foods to Raise Coffee Product Ex-factory Prices by an Average of 7.3% Starting from the 14th

Raw Material Price Increase, First Time in 8 Years Since July 2014
Cereal Shipment Prices Also Raised by an Average of 9.8%

[Asia Economy Reporter Lim Hye-seon] Dongseo Foods announced on the 7th that it will raise the wholesale prices of its coffee products by an average of 7.3% starting from the 14th. This coffee price increase is the first in eight years since July 2014.

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

The company explained that this price increase reflects the sharp rise in international coffee prices since April last year, the surge in logistics costs after COVID-19, and the increase in prices of major raw materials. The price of international Arabica coffee beans soared from 113 cents per pound in 2020 to 230 cents in December 2021, a 103.5% increase. This was due to drought and frost damage in Brazil, the largest coffee-producing country.

Additionally, the price of palm oil, used as a raw material for coffee mix, rose by 54.8%, and sugar increased by 16.7% during the same period. Coupled with the global logistics crisis, the upward trend in raw material prices is expected to continue.

Dongseo Foods stated, "Due to the continuous rise in prices of major raw materials, including international coffee prices, we have inevitably decided to implement this price increase."

Meanwhile, the wholesale prices of cereal products will increase by an average of 9.8%. This reflects the rise in raw material costs for corn grits, the main ingredient of cereal, as well as increases in packaging and logistics costs.

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