SOUTH KOREAN SOJU GIANT HITEHINRO HIKED PRICES BY 7% TO REFLECT HIGHER COSTS
By Tony Zhu
South Korea’s leading drinks producer Hitejinro has hiked prices of its soju and beer products by about 7 percent to reflect higher raw material and manufacturing costs.
Hitejinro raised Chamisul soju prices by 6.95 percent and Hite, Terra and Kelly beer prices by 6.8 percent last week due to sharply increased prices of base alcohol and bottle prices, the company said in a statement.
Prices of base alcohol called "jujeong" jumped by more than 10 percent in April, and bottle prices have recently soared by 20 percent, the company said.
Soju is a distilled liquor made of jujeong and water, with the addition of sweeteners.
But the company didn't raise the price of 500-milliliter cans of beer.
Last month, Oriental Brewery, Hitejinro's major competitor, raised the prices of beer by 6.9 percent for the same reasons.
Hitejinro has been repeatedly named the world’s biggest spirits producer by volume.
The company started a globalisation campaign of its soju in 2016 when exports of the product was worth USD44 million.
In 2021, its soju exports reached USD102m, it continued to grow and exceeded USD120m last year, nearly tripling that of 2016 when the company started the globalisation push.
(the writer can be contacted at: firstname.lastname@example.org)
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