[Ottogi website]
[Ottogi website]

Ottogi announced Thursday it will raise factory prices on select cup ramyun and mandu products, citing cost pressures from rising raw material and packaging prices as well as a high exchange rate.

Products subject to the adjustment include Jin Ramen, Yeol Ramen, Chamkkae Ramen, Cup Noodle and X.O. The average increase is 6.7% across 29 items under 11 cup ramyun brands, and 7.7% across 16 items under three mandu brands. The new factory prices take effect at hypermarkets first on Sept. 7, with retail prices at other distributors to be set following separate negotiations.

Under the new pricing, the hypermarket retail price of Jin Ramen Spicy flavor (110g) and Yeol Ramen (105g) in cup form is expected to rise from 1,200 won to 1,300 won, while Chamkkae Ramen cup (110g) will go from 1,400 won to 1,550 won. Two products under the premium mandu brand X.O. — the gyoza (324g×2) and the shrimp and red crab gyoza (324g×2) — will increase from 10,480 won to 11,480 won.

Ottogi said it has continued to streamline production processes and cut costs, but that prolonged cost pressures have made a factory price adjustment unavoidable. "Rising exchange rates and fluctuations in international oil prices have pushed up the cost of key raw materials such as palm oil and flour, as well as packaging materials including film and plastic containers," a company official said. "To ease the burden on consumers buying ramyun, we have decided to hold prices steady on bagged ramyun, which accounts for about 60% of our total ramyun sales."


spa@heraldcorp.com