Retailers claim supply prices of Samdasoo risingThe supply price of the nation’s favorite bottled water appears set to rise again today, but it is unclear what the impact will be on consumer prices.
Kwang Dong Pharmaceutical increased the supply price of a 500-milliliter (16.9-ounce) bottle of Jeju Samdasoo by 10 won earlier this week and is adding 15 won to its 2-liter bottles from today, according to industry sources.
The company only recently took over the distribution rights to Samdasoo from Nongshim, the country’s largest processed food manufacturer.
Sources say the financial burden may not be passed on to consumers immediately.
However, a spokesperson for the pharmaceutical maker and distributor denied having raised the supply price of any of its Samdasoo products and said it has no plans to do so.
Sources claim the company is simply taking advantage of the fact that it applied the new prices from the first day of it taking over the business from Nongshim.
Kwang Dong Pharmaceutical began distributing the brand to convenience stores and general retailers across the country through 200 dealerships from Monday.
Retailers say they are still using up inventory supplied by Nongshim and will likely switch over in the next week or two.
The rumors have sparked concern that other bottled water manufacturers may also increase their prices.
“After the presidential election [on Dec. 19], many food companies raised the prices of their products,” a Lotte Mart spokesman said. “As such hikes were considered long overdue, Kwang Dong’s move is expected to trigger a domino effect,”
By Kim Jung-yoon [email@example.com]
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