[Alpha Biz=(Chicago) Reporter Paul Lee] Nongshim has decided to cut prices of its flagship product "Shin Ramyun," and latecomers in the ramen industry such as Ottogi, Samyang Food and Paldo are also expected to lower prices. Some predict that price cuts will spread across other food industries such as bread and snacks.
Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance Choo Kyung-ho earlier mentioned the need to cut the price of instant noodles, saying, "I hope the price of instant noodles will be lowered now that international wheat prices have dropped," and the Ministry of Agriculture, Food and Rural Affairs also met with flour mills and asked for a cut in the price of flour.
Nongshim said on the 27th that it will lower the factory prices of Shin Ramyun and Saewookkang by 4.5% and 6.9%, respectively, as of July 1.
Nongshim predicted that the price of a bag of Shin ramen, which is sold at 1,000 won at retail stores, will be 50 won lower and Saewookkang, which is 1,500 won, will be 100 won lower.
The price of alcohol mixed with beer and soju, which Nongshim receives from local flour mills such as CJ CheilJedang, will be cut by 5.3% from July.
Nongshim earns about KRW 8 billion a year in cost savings. The industry expects the price cut to benefit consumers more than 20 billion won a year.
Samyang Food is also joining the ranks of ramen price cuts. Samyang Foods, which sells ramen such as Samyang ramen and Buldak stir-fried noodles, said, "We plan to cut the price of ramen," adding, "We will announce the items and the extent of the cut within this week at the latest."
Samyang Food has not yet decided on a price cut for ramen, but it is expected to be similar to Nongshim.
"We have not yet decided on the exact item and the extent of the cut," a Samyang Food official said. "Because the raw materials are similar, Nongshim and the extent of the cut will be similar."
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