After soju, the price of beer also rises.
OB Beer announced on the 2nd that it would raise the factory price of domestic beer products such as Cass, Hanmaek (pictured) and Obi Lager by an average of 7.7% from the 8th. The price of canned beer products increased by 3-5%, and the price of bottled beer products by 9%. It is the first price increase of OB beer in about six years since November 2016.
Accordingly, the 500ml bottled beer product, which had a factory price of 1,147 won, will jump to 1,250 won, which is a price increase of 100 won or more. An official from OB said, “We have frozen prices for the past 6 years due to management rationalization and cost reduction efforts, but price adjustments for some products are inevitable as external cost pressure is unprecedentedly intensifying. We have minimized the range of adjustments,” he explained.
The price of international barley, the main raw material for beer, surged 33% from 2019 to 2021, before the COVID-19 crisis. The international price of aluminum, a key material for household can products, rose 45% in 2021 compared to the previous year.
Hite Jinro and Lotte Chilsung Beverage are also reported to be considering a beer price hike. The industry explains that the price increase is inevitable as the price of beer will rise 20.8 won from last year (834.4 won) to 855.2 won per liter from the 1st of next month.
By Myung Hee-jin