South Korea: Alcohol stocks surge on news of beer, soju price hikes
South Korean brewery and distillery stocks are gaining on November 1 following the news of price increases for soju and beer, Pulse News Korea reported.
In the Kosdaq market, Korea Alcohol Industrial (KAI) Co. gained 21.37 percent compared to the day before, trading at 12,380 won ($9.13) as of 9:08 a.m.
Other alcoholic beverage makers are also on the rise, with Pungguk Ethanol Co. up by 14.72 percent, and Changhae Ethanol Co. up by 9.22 percent.
In the Kospi market, alcohol makers are also performing well, with Lotte Chilsung Beverage Co. up 1.24 percent, Hite Jinro Co. up 0.24 percent, and Bohae Brewery Co. up 1.80 percent.
On Tuesday, October 31, Hite Jinro announced that they would raise the wholesale prices of Chamyiseul and its other soju products by 7 percent, starting from November 9, and the average wholesale prices of its beer products, including Terra and Kelly, by 6.8 percent.
The beverage maker’s price hikes are believed to have been inevitable, given that the price of ethanol, the main ingredient for soju, has increased by 10.6 percent, and bottle prices have risen by 21.6 percent. The international market price of malt, which is used in beer production, has also increased.
Oriental Brewery Co. has also raised the wholesale prices of its beer products, including Cass and Hanmac, by an average of 6.9 percent from last month, citing rising raw material costs and logistics expenses.
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