Instant coffee products sold at a supermarket in Seoul (Yonhap)
SEOUL, May 23 (Korea Bizwire) — Major coffee chains and instant coffee producers in South Korea are raising prices amid an increase in raw material costs, according to industry data Friday.
Angel-in-us Coffee, operated by Lotte GRS Co., said it will increase beverage prices by 200 to 300 won (US$0.15-0.22) Thursday.
CJ Foodville Corp.’s bakery cafe chain Tous Les Jours will also raise prices of 32 coffee items by 100 to 300 won Friday.
The planned hikes follow earlier price adjustments this year by Starbucks Korea, Hollys and Paul Bassett. Budget coffee brands, such as Baekdabang and Mega MGC Coffee, have also raised prices in recent months.
Dongsuh Co., the nation’s leading off-the-shelf instant coffee maker, said it will raise factory prices of its products by an average of 9 percent Friday. Ready-to-drink beverages, such as Maxim T.O.P and Maxwell House, will also increase by an average of 4.4 percent.
The company previously raised prices in November, citing rising global coffee bean and palm oil prices, along with continued pressure from foreign exchange movements.
“Unusual climate conditions have driven up raw material costs, prompting the retail price hike,” a company official said.
(Yonhap)
