Pepero, ABC chocolates to become more expensive

Industry

Published: 18 Apr. 2024, 18:12

Pepero, ABC chocolates to become more expensive

A person browses chocolate items at a supermarket in downtown Seoul on Thursday amid record-high cocoa prices, a key ingredient in chocolate production. [YONHAP]

Lotte Wellfood, Korea's largest chocolate manufacturer, will hike the prices of 17 chocolate snacks and ice creams by an average of 12 percent from May as cocoa prices jump due to recent weather conditions in West Africa.

Ghana Mild (34 grams) will see its prices rise to 1,400 won ($1) from 1,200 won as per convenience store pricing.

Other increases include Pepero Chocolate (54 grams) from 1,700 won to 1,800 won, Crunky (34 grams) from 1,200 won to 1,400 won and ABC (187 grams) from 6,000 won to 6,600 won. Binch (102 grams) will increase from 2,800 won to 3,000 won, Kancho (54 grams) from 1,200 won to 1,300 won and Myeongga Chaltteok Pie (6-pack) from 4,000 won to 4,200 won.

Frozen dessert items will also see price increases, with GooGoo Cluster rising from 5,000 won to 5,500 won and Tico increasing from 6,000 won to 7,000 won.

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The revised prices will be implemented sequentially across retail channels starting from May 1.

Lotte explained that the price hikes on chocolate items stem from the record-high prices of cocoa, a key ingredient in chocolate, observed globally.

Cocoa futures have hit $10,559 per ton as of Monday, according to the Intercontinental Exchange (ICE). This surpasses the previous record set on July 20, 1977, of $4,663.

Industry observers attribute the surge in cocoa prices to a combination of factors, including adverse weather conditions and cocoa diseases affecting major cocoa-producing countries like Ghana and Côte d'Ivoire in West Africa, which together account for over 60 percent of global cocoa production.

"With rising processing costs and the unprecedented cocoa price surge, it has become necessary for us to increase product chocolate prices," a spokesperson from Lotte Wellfood said.

The price increases initiated by Lotte Wellfood have sparked other confectionery giants like Orion, known for products like Choco Pie and Dr. You, and Haitai Confectionery and Foods, the producer of Oh Yes!, Homerun Ball and the Free Time chocolate bar.

"While we do not have immediate plans for price increases, we are monitoring cocoa prices as pressures continue to intensify," said an Orion spokesperson.

Before they hit the chocolate industry, price hikes were also observed in other sectors.

Dried seaweed companies, including Kwang Cheon Kim, Sung Gyung Food, Daechun Gim have raised prices by 10 to 20 percent this month. Essential goods, such as pens, lighters and sanitary pads, have seen increases of up to 33 percent at convenience stores, while certain everyday essentials sold at hypermarket chains like Emart, Lotte Mart and Home Plus are expected to experience price hikes next month.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]