Following Soju, Beer Prices Also Rise Domino Effect... 'Somaek 10,000 Won' Era Becomes Reality in Restaurant District

[Image source=Yonhap News]

[Asia Economy Reporter Song Seung-yoon] Following the domino effect of soju price increases, beer prices are also beginning to rise in earnest. As the top two companies in the liquor industry consecutively raise prices, other companies are expected to follow suit.

According to the industry on the 23rd, HiteJinro raised the ex-factory prices of beers such as Terra and Hite by an average of 7.7% starting today. This is the first price increase in six years based on the normal ex-factory price. A HiteJinro official said, "We have internally strived for cost reduction and efficiency, but due to the ongoing widespread inflation, price adjustments for some products became inevitable," adding, "We decided on the price adjustment range to minimize the burden on the market and consumers."

The wave of beer price increases began with OB Beer. Earlier, OB Beer raised the ex-factory prices of beer products such as Cass, Hanmac, and OB Lager by an average of 7.7% starting from the 8th of this month. An OB Beer official explained, "We have kept prices frozen for the past six years through management rationalization and cost reduction efforts, but external cost pressures have intensified unprecedentedly, making price adjustments for some products unavoidable," and added, "To reduce the burden on consumers, we minimized the price adjustment range relative to the increase in costs."

Price increases by other competitors such as Lotte Chilsung Beverage, which sells 'Cloud', are also expected to be implemented soon. Imported beers have already raised prices due to factors such as increased logistics costs, and domestic craft beer companies are also deciding on price hikes one after another. However, a Lotte Chilsung Beverage official stated, "There is currently no decision made regarding price increases."

With this beer price increase, the prices of beer sold at restaurants and pubs are also expected to gradually rise. Due to the previous round of price increases in the soju industry, the era of 10,000 won for 'Somaek' (soju and beer cocktail) at restaurants has become a reality. Some establishments, fearing a decrease in customers, have decided to keep sales prices frozen despite the price hikes or to gradually raise restaurant sales prices after depleting existing inventory. However, as other costs such as ingredients and labor have generally increased, it seems inevitable that the restaurant industry will also decide to raise prices.

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