4 Mogumogu varieties to rise 11% in price

[Korea Jumax product page]
[Korea Jumax product page]

Mogumogu, a popular Thai imported drink, will raise its convenience store prices starting Sept. 1. The move reflects mounting pressure across the food and beverage industry from a weak won, higher logistics costs and a sharp rise in plastic packaging material costs.

According to industry sources, four 320-milliliter Mogumogu varieties — lychee, mango, peach and yogurt — will increase in price from 1,700 won to 1,900 won, a 200-won, or 11 percent, rise at major convenience stores beginning Sept. 1.

The hike is driven largely by a surge in naphtha prices — a key raw material for producing plastic containers and film packaging — fueled by the prolonged conflict in the Middle East. According to global data platform Trading Economics, international naphtha prices stood at $743.74 per ton as of Tuesday, up 33.16 percent from the same period last year. A weak won and rising international shipping costs, typical pressures for imported beverages, have added to the strain.

Price increases driven by packaging and raw material costs are spreading across the beverage industry. Dongwon F&B will also raise prices on omija tea and other beverage products by 9 to 10 percent starting Sept. 1. Lotte Chilsung earlier raised factory prices by an average of 5.3 percent on 44 products across 12 brands — including Chilsung Cider and Pepsi-Cola — in June. Coca-Cola Beverage and Paldo were among other major manufacturers that also raised prices.

"With the high exchange rate and growing volatility in international oil prices, the cost of containers and plastic packaging has risen sharply, making consumer price adjustments unavoidable," an industry official said.


siuu@heraldcorp.com