"Bagged coffee, I trusted you..." Dongseo Food raises prices by an average of 8.9%

Everyone knows Yellow Coffee, right?

I often drink Mocha Gold Mild and Yonacoffee~

I usually eat Amedo, but I also occasionally enjoy mixed coffee.

It is said that from the 15th, there will be an average increase of 8.9%.

It's so sad.

These days, everything is expensive, and price increases are unavoidable... It makes me sad.

I need to check how much mix coffee we have at home and buy some more.

 

The price of 'mix coffee,' the soul mate of office workers, is also increasing. Following the price hikes of coffee franchises, instant coffee prices are also on the rise, raising concerns about 'coffee inflation' (coffee + inflation).

According to industry sources on the 3rd, Dongseo Food will raise the prices of coffee products, including instant coffee and coffee mixes, by an average of 8.9% starting from the 15th. Dongseo Food holds nearly 90% of the domestic instant coffee market. This price increase is the first in two years since December 2022.

Most products such as Caffè Latte and Maxim are increasing in price. 'Maxim Mocha Gold' (refill 500g) will rise from 17,450 won to 19,110 won, and 'Maxim Mocha Gold Coffee Mix' (2.16kg) from 23,700 won to 25,950 won. 'Caffè Latte Americano' (90g) will increase from 17,260 won to 18,900 won, and 'Maxim T.O.P' (275ml) from 1,290 won to 1,400 won.

Dongseo Food cited the increase in raw material costs such as coffee beans, sugar, and palm oil, as well as high exchange rates, as reasons for the price hike. It explained that, as the coffee industry relies entirely on imports for all raw materials, it cannot avoid the cost burden caused by the rising exchange rate.

It is also true that the price of coffee beans is rising rapidly. Not only high-quality Arabica beans but also relatively cheaper Robusta beans are reaching record highs. According to the Food Industry Statistics and Information of the Korea Agro-Fisheries & Food Trade Corporation (aT), the average price of Robusta beans on the London International Financial Futures Exchange (LIFFE) last month was $4,687.65 per ton, a 91.02% increase from $2,453.95 a year ago. Since reaching a record high of $5,527 per ton on September 26, it has been fluctuating.

Our country mainly imports Robusta from Vietnam and Arabica from Brazil. In Brazil, the world's largest coffee producer, the growth of coffee beans is sluggish due to the worst drought and high temperatures in 70 years. Vietnam has also been affected by drought and typhoon damage. Since these are not short-term factors, it is highly likely that the upward trend in coffee bean prices will continue into next year.

Earlier, the coffee franchise industry also raised prices one after another. In August, Starbucks increased the prices of all beverages by 300 won for the Grande (473ml) and 600 won for the Venti (591ml) sizes. Budget coffee brands such as The Venti and Compose Coffee also saw price increases ranging from at least 200 won to as much as 1,000 won since the first half of this year.

A source in the food industry stated, "Due to abnormal weather conditions reducing coffee production, the high raw material prices continue, leading to ongoing price increases," and added, "Since the poor coffee crop conditions are not expected to recover in the short term, the trend of rising coffee prices may continue into next year."

 

<Source: Kukmin Ilbo>