'Cheoeumcheoreom' Also Raises Prices... Price Increase Domino Effect Realized in Soju Industry

Lotte Chilsung to Raise Soju Prices by an Average of 7.2% Starting Next Month 5
Soju Prices Rise One After Another Starting with Hite Jinro

[Asia Economy Reporter Song Seung-yoon] Amid a domino effect of price increases in the soju industry, Lotte Chilsung Beverage has also decided to raise the factory shipment prices of some soju products.

Lotte Chilsung Beverage announced on the 25th that starting from the 5th of next month, it will increase the factory shipment prices of some soju items, including 'Cheoeum Cheoreom' and 'Cheongha,' by an average of 7.2%.

Specifically, 'Cheoeum Cheoreom' will see a 7.7% increase for bottled products and a 6.7% increase for PET bottles (640ml) for the first time in three years since 2019. 'Cheongha' will increase by 5.1%, 'Baekhwaseubok' will increase by 7.0% for 1.8L, 7.1% for 700ml, and 7.4% for 180ml. 'Seoljungmae' and 'Myeongga' will also increase by 7.0%.

A Lotte Chilsung Beverage official stated, "Although we have been bearing the cost burden caused by increases in raw materials, packaging materials, and handling fees through internal profitability improvement activities, it has become difficult to continue doing so. Therefore, to minimize the burden on consumers, we have decided to raise the shipment prices for only some items."

[Image source=Yonhap News]

The domino effect of price increases in the soju industry began with Hite Jinro. Hite Jinro raised the factory shipment prices of Chamisul Fresh and Chamisul Original by 7.9% starting from the 23rd. Following this, Muhak and Bohae Brewery also joined the price hike trend. Muhak will increase the shipment prices of 'Good Day' and 'White' by an average of 8.8% starting from the 1st of next month, and Bohae Brewery will raise the prices of 'Ipsaeju,' 'Yeosu Bamdada,' and 'Bokbadeun Brother' by an average of 14.6% starting from the 2nd of the same month. 'Bohae Soju' prices will increase from the 16th.

The Jeju Island regional soju brand 'Hallasan Soju' has also decided to raise prices. Starting from the 3rd of next month, 'Hallasan Soonhan 17 (360ml)' will increase from 1,081 won to 1,168 won per bottle, and 'Hallasan 21 (360ml)' will increase from 1,186 won to 1,285 won, marking price hikes of 8% and 8.3%, respectively.

Recently, increases in the cost of ethanol, bottle caps, and other manufacturing expenses have been factors driving the price hikes. Daehan Ethanol Sales raised ethanol prices by an average of 7.8% starting from the 4th, and taxed ethanol increased from 363,743 won to 391,527 won per drum (200L), a 7.6% rise. Untaxed and duty-free ethanol prices rose from 351,203 won to 378,987 won, a 7.9% increase. Additionally, bottle cap manufacturers such as Samhwa Crown and Sewang Metal Industry raised bottle cap prices by an average of 16% on the 1st. Furthermore, increases in container deposits and handling fees have also contributed to the growing manufacturing cost burden.

The increase in soju shipment prices has also triggered a 'tug-of-war' among self-employed restaurant and bar owners over soju retail prices. Most self-employed operators expect to raise soju prices by around 5,000 won on average. However, some have decided to keep retail prices unchanged despite the price hikes due to concerns about losing customers, or plan to gradually raise restaurant prices after depleting existing inventory over some time.

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