Regular cola, cider, zero-sugar cola and zero-sugar cider products are displayed at a hypermarket in Seoul. [Yonhap]
Regular cola, cider, zero-sugar cola and zero-sugar cider products are displayed at a hypermarket in Seoul. [Yonhap]

Lotte Chilsung Beverage said Tuesday it will raise factory prices on 44 products across 12 brands, including Chilsung Cider, by an average of 5.3 percent starting June 26.

The price increase is the company's first in about two years, since June 1, 2024. Among the brands affected, Letstbe coffee cans will see the steepest hike at 7.6 percent.

The remaining increases by brand are: Ipro Bujokhaltae (6.9 percent), Gatorade (6.3 percent), Mountain Dew (6.1 percent), Milkis (6.0 percent), Lipton (5.9 percent), Cantata (5.7 percent), Ceylon Tea (5.1 percent), Pepsi-Cola (5.0 percent), Sol-ui-Nun (4.4 percent), Chilsung Cider (4.3 percent) and Hot Six (4.0 percent).

Lotte Chilsung said rising raw material costs for packaging materials were a major driver of the adjustment. Packaging accounts for about 50 percent of total production costs in the beverage industry, a far higher share than in other food sectors. The company also cited higher import costs for concentrates used to produce PepsiCo products, driven by a weaker won, as well as rising logistics costs tied to higher oil prices.

"The burden of production costs has grown to a point where it can no longer be absorbed internally," the company said, adding that sustained margin deterioration had raised concerns about both product quality competitiveness and damage to shareholder value.


korean@heraldcorp.com