![]() "When a company raises the price of a major product, competing companies in the industry are likely to follow, so each of us are cautious." Prices of major foods, which factor into the consumer price calculation, have increased remarkably. "The government is promoting price stabilization as the top priority, so companies are walking on eggshells about raising prices," said an official from the food industry. Nongshim, the No.1 company in the industry, is expected to report under 20 billion won of operating profit in the second quarter, from 34.3 billion won in the first quarter. ![]() They upped prices last August and could do it again as profits are hit by rising raw material prices. The ramyeon Big 3 - Nongshim, Ottogi, and Samyang Foods - are seen as the next to fall. Subway upped the price of 15-centimeter (5.9-inch) sandwiches by 5.8 percent Tuesday after a price increase earlier this year. Zinger Burgers went from 4,900 won to 5,300 won. KFC, which raised the prices of some of its products in the first half of this year, raised the prices of some burgers and chicken sandwiches once more on Tuesday. In countries where Choco Pies are used as currency, rates of exchange could be upended. Prognosticators anticipate an increase in the range of a few hundred won per box. This is because raw materials for food products, including wheat, have become more expensive, putting the squeeze on margins. Insiders in the handheld snack industry expect Orion to raise the price of Choco Pies this year. "We are currently reviewing a price increase for all items, but specifics, such as for which products and the exact timing of the increase, has not been confirmed." Orion raised the price of a box of a dozen Choco Pies from 4,000 won to 4,800 won in 2013 but has not raised the price since then. "It's true," admitted a source within Orion, the confectionery giant. The move could shake the industry as the snack, both an icon and a bellwether, has been selling at a steady 4,800 won ($3.68) per dozen for nearly a decade. Orion Choco Pie Even the mighty Choco Pie may be no match for inflation, with Orion possibly raising the price of the marshmallow-chocolate delight. ![]()
0 Comments
Leave a Reply. |