Korea’s snack prices increase as costs rise
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Nineteen Nongshim snacks, including its famous Shrimp Crackers, will cost more beginning tomorrow, the company announced on Tuesday. “We have decided to raise prices in the face of accumulated pressure from rising production, labor and management costs,” said a Nongshim spokesperson. “We have tried to minimize the scope of the price rise in consideration of our consumers.”
According to the company, Nongshim will raise the prices of 19 out of its 23 snacks by an average of 6.7 percent beginning from Nov. 15.
A 90-gram (3.17 ounces) bag of Shrimp Crackers, one of the company’s iconic products, will now cost around 100 won ($0.08) more than the current 1,200 won. The prices of other favorites, such as Onion Rings, Honey Twist Snacks and Tako Chips, will rise by 6.1 percent, while the price of Pretzels will jump by 7.4 percent.
Tomorrow’s hike will mark the first time in over two years that Nongshim has increased snack prices. It upped the price of 15 of its snacks by an average of 7.9 percent in July 2016. In Feb. 2014, it increased the price of Shrimp Crackers by 10 percent.
Earlier this year, competitors Crown-Haitai Confectionery and Lotte Confectionery began charging more for some of their snacks, both citing rising production costs.
Questions & Answers
Q.What is the primary reason Nongshim has given for increasing its snack prices?
What is the primary reason Nongshim has given for increasing its snack prices?
Nongshim stated it has faced accumulated pressure from rising production, labour, and management costs. They claim to have minimised the scope of the price rise for consumers.
Q.How many of Nongshim's snack products will see a price increase tomorrow?
How many of Nongshim's snack products will see a price increase tomorrow?
Nineteen of Nongshim's 23 snacks will experience a price increase starting tomorrow. This affects popular items like Shrimp Crackers, Onion Rings, and Honey Twist Snacks.
Q.When was the last time Nongshim increased the prices of its snack products?
When was the last time Nongshim increased the prices of its snack products?
Tomorrow's price hike will be the first in over two years for Nongshim's snacks. They previously increased the price of 15 snacks by an average of 7.9 percent in July 2016.
Q.Are other snack manufacturers in the market also increasing their prices?
Are other snack manufacturers in the market also increasing their prices?
Yes, earlier this year, competitors Crown-Haitai Confectionery and Lotte Confectionery also began charging more for some of their snacks. Both companies cited rising production costs as their reason.
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