Orion to raise prices of 16 products from Thursday

Orion's Choco Pie are sold at a discount mart in Seoul. [YONHAP]

Prices of Orion snacks, including Choco Pies, will increase from Thursday due to the rising cost of raw ingredients, the company said Tuesday.

The prices of 16 different products will increase 15.8 percent on average, according to Orion. It marks the first time in nine years that Orion is raising its prices.

“The company has been minimizing a drop in profit through an increase in sales in the first half, but a rise in prices was decided in the latter half due to the sharp fall in profits,” said a spokesperson from Orion.

The burden related to high costs increased as prices of raw materials rose over 70 percent on year last month and energy costs over 90 percent, according to the company.

Prices of products that have seen low profits will be raised, the company said.
Prices of Choco Pie will increase 12.4 percent, Pocachip 12.3 percent and Turtle Chips 11.7 percent.
The company plans to increase the portion size of its snacks or decrease prices once costs of raw materials and energy drop and stabilize.

Other food companies have also raised their prices in recent months.Nongshim announced last month that it would raise its ramyeon and snack prices starting this Thursday.

Prices of Nongshim’s 26 ramyeon brands and 23 snack items will all be increased.

"The sharp rise in raw material costs and the local currency’s fall against the dollar have contributed to the burden related to high cost,” said a spokesperson for Nongshim.  The price of Nongshim's Shin Ramyun will increase by 10.9 percent and Neoguri 9.9 percent, according to the company.

Paldo is also expected to increase the prices of its 12 ramyeon brands starting next month.“Pressure on product cost worsened due to rising costs of raw materials, logistics and labor,” said a spokesperson for Paldo.

Other big food companies, such as Ottogi and Samyang Foods are expected to raise their prices following Orion and Nongshim. Price increases are also anticipated for dairy products.

“Negotiations between dairy companies and related committees to raise the price of raw milk will take place shortly,” said a spokesperson from a milk company.

An increased milk price is expected to lead to price adjustments in other related products such as bread and ice cream.

BY BAEK IL-HYUN, CHO JUNG-WOO [cho.jungwoo1@joongang.co.kr]