Maxim and Starbucks Coffee Prices Rise... Hamburgers and Strawberries Also Get More Expensive

New Year Fresh and Processed Food Prices Rise One After Another

[Asia Economy Reporter Jo In-kyung] From the beginning of the new year, prices of processed foods such as carbonated drinks, cup coffee, and convenience store porridge have risen, followed by consecutive increases in dining-out prices for coffee and hamburgers. Not only fresh foods but also many food items like Makgeolli and sauces have seen price hikes, putting pressure on the grocery bills of ordinary citizens.

Starbucks Raises Prices for the First Time in Seven and a Half Years

According to the food and distribution industry on the 8th, Starbucks will raise the prices of 46 out of 53 beverages currently sold by 100 to 400 KRW starting from the 13th. This is the first price increase in 7 years and 6 months since July 2014.

Prices of 23 relatively popular drinks such as Starbucks' Americano, Caffe Latte, and Cappuccino will increase by 400 KRW, 15 drinks including Caramel Macchiato, Dolce Latte, and Double Shot will rise by 300 KRW, 7 drinks such as Frappuccino will go up by 200 KRW, and Dolce Black Milk Tea will increase by 100 KRW each.

The prices of 'Maxim,' the representative mix coffee, and 'Kanu,' instant bean coffee, will also rise. Dongseo Food plans to raise the wholesale prices of coffee products by an average of 7.3% starting from the 14th. This coffee price increase is the first in 8 years since July 2014.

Accordingly, the wholesale price of 'Maxim Original (170g) Refill' will increase from 5,680 KRW to 6,090 KRW, 'Maxim Mocha Gold Coffee Mix (1.2kg)' from 11,310 KRW to 12,140 KRW, and 'Maxim Kanu Americano (90g)' from 14,650 KRW to 15,720 KRW, rising by 7.2% to 7.3%. The wholesale prices of cereal products such as 'Corn Flakes' will also increase by an average of 9.8%.

Both Starbucks and Dongseo Food cited the rise in major raw material prices as the reason for this price increase. The international price of Arabica coffee beans rose by 103.5%, from 113 cents per pound in 2020 to 230 cents in December 2021. Palm oil, used as a raw material for coffee mix, increased by 54.8%, and sugar rose by 16.7% during the same period. The rise in international logistics costs due to COVID-19 is also a factor putting pressure on prices.

Burger King Raises Prices Starting from the 7th

Hamburger prices have also increased. Burger King raised the prices of 33 products, including 25 types of burgers, by an average of 2.9% starting from the 7th. The price of the flagship Whopper (single item) rose from 6,100 KRW to 6,400 KRW, and the Whopper Junior increased from 4,300 KRW to 4,400 KRW.

Burger King's headquarters explained that the price hike was inevitable due to the surge in raw material prices caused by overseas production and logistics disruptions, as well as increased costs such as minimum wage hikes. Lotte GRS-operated Lotteria and No Brand also raised their product prices by an average of 4.1% and 2.8%, respectively, last month citing increased operating costs.

Saempo, which holds 55% of the domestic soy sauce market, raised the wholesale prices of 17 types of soy sauce for convenience stores and large supermarkets by 8%. This is the first time Saempo has raised soy sauce prices in about four years since 2017.

Earlier, Coca-Cola Beverages raised the convenience store distribution price of Coca-Cola by an average of 5.7%, up to a maximum of 6.6%, starting January 1. Maeil Dairies also increased the wholesale prices of cup coffee brands 'Barista Rules' and 'My Cafe Latte' by 8.0% to 12.5%. Dongwon F&B raised the supply and retail prices of 12 porridge products including 'Yangban Vegetable Porridge' by 15.4% to 15.6%, and Jipyeong Brewery increased the convenience store retail price of 'Jipyeong Saeng Makgeolli Rice Makgeolli' by a whopping 20%.

Winter Seasonal Strawberry Prices Up More Than 50% Year-on-Year

The price of strawberries, a popular winter fruit, has also risen sharply this winter due to reduced supply.

According to the Korea Agro-Fisheries & Food Trade Corporation's Agricultural Products Distribution Information (KAMIS), as of the 7th, the average retail price of 100g of strawberries (premium grade) was 2,593 KRW, up 26.5% from 2,049 KRW a month ago and 58.1% from 1,640 KRW a year ago. In wholesale markets, 2kg of strawberries (premium grade) traded at an average of 38,400 KRW, 28.9% higher than 29,788 KRW a month ago and 50.6% more expensive than 25,504 KRW last year.

An industry insider said, "Last autumn's early cold wave caused seedling death, significantly reducing strawberry supply. The relatively warm early winter weather led to overripe strawberries, resulting in a shortage of marketable strawberries," and predicted, "Strawberry prices will remain higher than usual for the time being."

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