Confectionery Industry Raises Nut Prices... "Due to Sharp Increase in Raw Material Costs"

Published 23 Apr.2022 16:37(KST)

[Asia Economy Reporter Eunmo Koo] Following Nongshim and Lotte Confectionery, Haitai Confectionery has also joined the ranks of confectionery companies raising prices one after another.

Earlier, Haitai Confectionery announced that starting from the 1st of next month, it will increase the prices of eight snack products, including Baked Potato and Wafers, by an average of 12.9%.

By item, Baked Potato and Wafers will rise from 900 won to 1000 won, an increase of 11.1%, while Jagabee, Honey Butter Chip, and Lollipop will increase from 1500 won to 1700 won, up 13.3%. Calorie Balance will go from 1700 won to 2000 won, and French Pie will increase from 3800 won to 4200 won, rising 17.6% and 10.5%, respectively.

A Haitai Confectionery official explained, "Prices have not been adjusted for products that have gone without changes for as short as 4 years and as long as 12 years, making it difficult to bear cost pressures, so we decided to adjust prices for those products." He added, "Due to the global surge in prices of essential raw materials such as flour, potatoes, and oils, we inevitably decided to adjust prices."

The confectionery industry has continued to raise prices this year, citing rising raw material costs. The industry states that due to the unstable global situation caused by Russia's invasion of Ukraine, as well as increases in grain prices and logistics costs, they had no choice but to raise prices.

Nongshim raised the ex-factory prices of 22 snack products, including Shrimp Crackers and Onion Rings, by an average of 6% last month, marking the first snack price increase in 3 years and 4 months. Honey Twists, Pockstick, and Onion Crackers were adjusted upward by 6.3%, and Shrimp Crackers by 7.2%.

Lotte Confectionery also raised prices starting this month: Pepero from 1500 won to 1700 won, Vins from 2400 won to 2800 won, ABC Choco Cookie from 1000 won to 1200 won, and Sunflower and Stone Age from 1200 won to 1500 won.