Lotte Chilsung Beverage hikes prices of Pepsi Cola, Gatorade

Lotte Chilsung Beverage will increase the prices of popular products like Chilsung Cider and Pepsi Cola due to rising import and manufacturing costs.

Chilsung Cider and Pepsi Cola on display at a large supermarket food store in Seoul [YONHAP]

Lotte Chilsung Beverage will raise the prices of major products including cider and Pepsi Cola as the dollar strengthens against the won and rising oil prices push up the cost of raw materials.

The prices of six beverage items, including Chilsung Cider, Pepsi Cola, Gatorade, HOT6ix and Del Monte Juice, will increase by an average of 6.9 percent starting from Saturday, Lotte Chilsung Beverage said Tuesday.

The price of 250 milliliters (8.5 ounces) of Chilsung Cider sold at convenience stores will jump to 1,700 won, up 100 won from the current price. Pepsi Cola will increase to 1,600 won from 1,500 won.

Beverages such as Del Monte Cold Orange and Grape (250ml), which include imported fruit concentrate, will increase to 1,600 won from 1,500 won.

The price of bottled mineral water Icis 8.0 will drop an average of 10.3 percent.

The price hike is the company's first since December 2022.

Lotte Chilsung Beverage attributed the price increase to rising oil costs and the sharp depreciation of the won. The two factors have driven up the import prices of raw materials, which has, in turn, inflated manufacturing costs, the company said.

Making the situation worse, the firm added, is the fact that aberrant weather conditions have decimated the harvests of fruits such as oranges, pushing the import price of fruit concentrates to historic highs.

“We will strive continuously to enhance product quality to increase consumer satisfaction with food products while reducing the burden of the products’ price,” said a spokesperson for Lotte Chilsung Beverage.

Lotte affiliate Lotte Wellfood also will raise the price of 17 chocolate products by an average of 12 percent starting June 1, which will impact popular items like Ghana chocolate and Pepero.

The price of a 34-gram (1.2-ounce) Ghana Mild chocolate bar will jump 1,400 won, up 200 won from its current price. Pepero Chocolate (54 grams) will increase to 1,800 won from 1,700 won.

Other increases include Crunky (34 grams) from 1,200 won to 1,400 won and ABC chocolate (187 grams) from 6,000 won to 6,600 won. Binch (102 grams) will climb from 2,800 won to 3,000 won, Kancho (54 grams) from 1,200 won to 1,300 won and frozen chocolate dessert GooGoo Cluster from 5,000 won to 5,500 won.

BY CHOI HAE-JIN [choi.haejin@joongang.co.kr]