LOTTE Wellfood announced on the 6th that it will raise the prices of some products starting from the 17th. The products affected are dry snacks and 26 types. The average increase rate is 9.5%.
For instance, the recommended retail price of Ghana Mild 70g will rise from 2,800 won to 3,400 won. Crunchy 34g will increase from 1,400 won to 1,700 won, and Choco Pepero 54g will jump from 1,800 won to 2,000 won. Mongseul Original 12 pack will go up from 6,600 won to 7,000 won, and LottSan Pineapple 315g will be raised from 4,800 won to 5,000 won. Additionally, the prices of Butter Coconut and Margarette Original, as well as World Cone and Seollaem among ice cream products, have increased.
LOTTE Wellfood stated that the rising costs of various raw materials such as cocoa, which reached an all-time high, along with the increase in logistics costs, labor costs, and electricity charges, made it difficult to bear production costs.
For instance, cocoa, the main ingredient in chocolate, was traded at an all-time high of $12,565 per ton at the ICE Futures Exchange on Dec. 20 last year. The price of cocoa has remained around $2,000 per ton for the past several decades. However, it surged 172% over the past year.
Recently, LOTTE Wellfood reported that the burden had increased further due to rising exchange rates. Food companies largely depend on imports for many raw materials. As a result, when the value of the won falls, the burden of raw material prices increases.
A LOTTE Wellfood official noted, "In a situation where costs for raw materials such as cocoa and oils, along with labor expenses, have risen, we have increased the prices of some products with high raw material burdens due to the high exchange rates."