OB to up beer prices next week by an average of 7.7 percent

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OB to up beer prices next week by an average of 7.7 percent

Published: 02 Mar. 2022, 16:48

Oriental Brewery's Cass beers are displayed at a discount mart in Seoul. [YONHAP]

Oriental Brewery (OB) is upping its beer prices next week.

The factory price of its domestic beer brands, including Cass, Hanmac and OB Lager beers, will rise an average 7.7 percent starting March 8, OB announced Wednesday.

This is the first price increase since November 2016.

The company spokesperson said prices of raw materials have soared due to the global supply shortages.

Barley prices rose 107.6 percent $224.35 per ton in 2021 according to the International Monetary Fund. The price of aluminium, used to make beer cans, rose 45 percent in 2021, according to the company.

Taxes on beers are also set to rise starting in April.

The tax will go up 2.49 percent to 855 won (70 cent) per liter, and other beer makers could follow OB's decision and raise their prices too.

The last price hike for HiteJinro was in December 2016. It raised the factory price of its Hite and Max beers by an average 6.3 percent.

BY LEE TAE-HEE [[email protected]]