According to Yonhap, South Korean food makers Nongshim Co., CJ Foodville Co. and BR Korea Co. are raising product prices as higher input costs continue to squeeze margins, with the pressure tied to a weaker won, higher oil prices and unrest in the Middle East. Nongshim said it will lift wholesale prices for products from 43 brands by an average of 5.8% starting next month, while the retail price of Shrimp Crackers is expected to rise to 1,600 won ($1.09) from 1,500 won. The company said this is its first price increase for the snack in 17 months and that packaged instant ramyun will be excluded from the hike despite accounting for 63% of sales.
CJ Foodville said it will raise the prices of bread and cake items sold at its Tous les Jours bakery chain from July 31, while leaving out popular products to limit the burden on consumers. BR Korea, the operator of Dunkin' Donuts in South Korea, said it will increase prices for 39 products by an average of 6.5% starting Aug. 2. The article also said Brent crude futures climbed above $100 per barrel Thursday as conflict in the Hormuz Strait intensified, with South Korea relying on the strait for about 95% of its oil imports from the Middle East.
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