From Beer to Coffee... Sighs Over Successive Price Hikes of Beverages Comforting the Common People

'The Era of "4 Beers for 10,000 Won" Ends
Coffee Prices Also Rising One After Another Starting with Starbucks
Citizens Say "Life Has Become Even Tougher..." with a Sigh'

Imported beer displayed on the liquor shelf at a Seoul mart. The photo is unrelated to specific expressions in the article. Photo by Yonhap News

[Asia Economy Reporter Kang Juhee] Coffee, which helps office workers get through their day, and a light beer to enjoy after work have both become burdensome expenses. As the new year began, the prices of beverages frequently consumed by the general public, such as beer and coffee, have risen consecutively, deepening citizens' sighs.

According to related industries, Heineken Korea, the top importer of beers including Heineken, Edelweiss, and Tiger, raised the bundled price of four beers for 10,000 won to 11,000 won, a 10% increase, in early last month. In the same month, OB Beer raised the price of products it imports and sells, such as Budweiser, Stella Artois, and Hoegaarden, to 11,000 won, and HiteJinro’s Blanc 1664 and Sammi Sangsa’s San Miguel also followed suit with price increases to 11,000 won.

Craft beers, which had gained popularity and formed a fan base, have also joined the price hike trend. Industry leader Jeju Beer decided to raise the bundled price of six of its products, including Jeju Wit Ale and Jeju Pelong Ale, to 11,000 won starting next month. This has increased the likelihood that other craft beer companies will also adjust their prices.

The beer industry's price hikes are attributed to rising transportation costs and key raw material prices due to the ongoing global logistics crisis caused by COVID-19. Additionally, the government decided to increase the liquor tax on beer and Makgeolli (Takju) by 2.49% (20.8 won) and 2.38% (1.0 won), respectively, starting in April this year, leading to widespread expectations that alcohol prices will continue to rise.

Park, a worker in his 20s, expressed regret, saying, "Having a beer after work at home was the highlight of my day, but even that has become a burden."

Office workers drinking coffee. / Photo by Yonhap News

Meanwhile, coffee prices, which most office workers drink almost daily, have also increased. Starbucks, the number one franchise in the industry, raised the prices of some drinks such as Americano and Caffe Latte by 100 to 400 won starting on the 13th. Following this, Twosome Place, Hollys Coffee, Tom N Toms, and Ediya also decided to raise their beverage prices by 200 to 400 won.

The rise in coffee prices is due to a decrease in production in Brazil and Vietnam, the world's largest coffee bean producers, caused by abnormal weather conditions such as drought and cold damage, which led to a significant increase in raw coffee bean prices. The price of Arabica beans, which account for 60% of the world's coffee bean supply, soared from $1.13 per pound in January 2020 to $2.30 per pound in December last year, more than doubling. Coupled with the global logistics crisis, the price increase became inevitable.

As prices of items closely related to daily life continue to rise, citizens are sighing, saying, "Life is getting tougher and tougher." Public utility fees such as electricity and gas are also scheduled to increase from the second quarter of this year, further increasing the burden on ordinary people.

The government plans to make every effort to curb soaring prices. On the 27th, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, held a meeting at the Government Seoul Office and stated, "Recently, international oil prices and raw material costs have risen, expanding upward pressure on prices this year. We will strengthen monitoring of international oil prices and raw material costs, and especially closely inspect excessive price hikes and opportunistic increases in the processed food and dining-out industries. We will also enhance the market surveillance role of the Fair Trade Commission and consumer organizations."

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