Both Soju and Saewookkang, a Perfect Match, Will See Price Increases

Soju Prices Rise One After Another Starting with HiteJinro
Nongshim to Raise Snack Wholesale Prices by an Average of 6% Next Month

[Image source=Yonhap News]

[Asia Economy Reporter Koo Eun-mo] As the domino effect of price increases continues in the soju industry, prices of best-selling snacks such as 'Saewookkang' will also rise.

According to the industry on the 26th, Lotte Chilsung Beverage will raise the factory shipment prices of some soju products, including 'Chum Churum' and 'Cheongha,' by an average of 7.2% starting from the 5th of next month. Specifically, 'Chum Churum' will increase by 7.7% for bottled products and 6.7% for PET (640ml) after three years since 2019, 'Cheongha' by 5.1%, 'Baekhwaseubok' 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 said, "There have been cost burdens due to increases in raw materials, subsidiary materials, and handling fees, but we have absorbed these through internal profitability improvement activities. However, it has become difficult to bear these costs any longer, so we decided to raise the shipment prices only for some products to minimize the burden on consumers."

Earlier, the domino effect of price increases in the soju industry began when Hite Jinro raised the shipment prices of its soju products. Hite Jinro increased 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 raise 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 increase the shipment prices of 'Ipsaeju,' 'Yeosu Bamdada,' and 'Bokbadeun Brother' by an average of 14.6% starting from the 2nd of the same month. Jeju's local soju, 'Hallasan Soju,' also decided to raise prices. Hallasan Soju will increase the price of ‘Hallasan Soonhan17 (360ml)’ from 1,081 won to 1,168 won per bottle and ‘Hallasan21 (360ml)’ from 1,186 won to 1,285 won starting from the 3rd of next month, raising prices by 8% and 8.3%, respectively.

As the shipment prices of these products increase, retail prices at large supermarkets and convenience stores are also expected to rise consecutively. After Hite Jinro raised the shipment prices of soju products, four convenience store chains?CU, GS25, 7-Eleven, and Emart24?simultaneously raised consumer prices. Lotte Mart, Homeplus, and Emart have also raised or are expected to raise the selling prices of Chamisul and Jinro.

[Image source=Yonhap News]

Following soju, the price of the nation's favorite snack Saewookkang will also increase. Nongshim announced on the 23rd that it will raise the shipment prices of its snacks by an average of 6% starting next month. This is the first price increase for Nongshim's snacks in 3 years and 4 months since November 2018. The price increase applies to 22 products, including Saewookkang and Yangpokkang. Based on shipment prices, Saewookkang will increase by 7.2%, and Honey Twist, Pockstick, and Yangpokkang will increase by 6.3%. Due to this price increase, the current retail price of Saewookkang (90g), which is sold at 1,300 won, is expected to rise by about 100 won. However, actual retail prices may vary by distribution store.

A Nongshim official explained, "Over the past three years, the international market prices of palm oil and wheat flour have risen by 176% and 52%, respectively, along with increases in major raw material costs, logistics costs, and other operating expenses. We adjusted prices within the minimum range considering the burden on consumers."

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