Will Convenience Store Beverage Prices Rise Again? The Inside Story of Lotte Chilsung's Price Hike

Imagine this: On a hot summer day, you stop by a convenience store to grab a can of your favorite cider to quench your thirst. But what if the price tag looks a bit different than it did a few days ago? There has been a change in the price of beverages, one of the items closest to our daily lives. Shall we take a look at the inside story of why beverage prices are rising?

Why does this matter?

A rise in beverage prices isn’t just a difference of a few hundred won; it’s a matter directly linked to our wallets. In particular, price hikes for products that many people enjoy, such as Chilsung Cider or Pepsi Cola, can affect the overall ‘food inflation.’ As Lotte Chilsung Beverage has decided to raise the factory prices of 44 items across 12 beverage brands by an average of 5.3% starting June 26, 2026, consumer burden is expected to increase. This is the first price adjustment in about two years since June 2024 [Source 2].

Why are prices rising? (In simple terms)

Why are prices going up after two years? The core issue is ‘cost.’

For example, think about the ‘packaging’ (cans, PET bottles, etc.) used when we drink beverages. For a company like Lotte Chilsung Beverage, the cost of this packaging is just as important as the beverage content itself. In fact, packaging accounts for about 50% of the total raw material cost [Source 1].

To put it in perspective, it’s like a situation where you’re making a delicious dish, but not only are the ingredients becoming an issue, but the cost of the high-end dishware you serve the food on suddenly doubles or triples—leaving you no choice but to recalibrate the price of the entire dish. Currently, the prices of key raw materials for beverage containers, such as aluminum and plastic, have surged, and when combined with the ‘high exchange rate’ phenomenon where the value of the Korean won has fallen, the cost burden companies must bear has reached a critical point [Source 1, Source 2].

Current Situation

Companies have had a difficult time over the past few years. In the wake of high inflation and high exchange rates, Lotte Chilsung Beverage’s operating profit in the first quarter of 2025 decreased by 31.9% compared to the same period last year [Source 3, Source 4]. The fact that raw material prices like coffee or oranges have soared to 4-5 times their usual levels has also been a major factor in worsening profitability [Source 17, Source 18].

Although there are signs of some performance improvement due to growth in overseas businesses and the popularity of zero-sugar beverages [Source 11], sluggish domestic demand and external economic headwinds remain a heavy burden on companies [Source 8, Source 9]. This price hike is ultimately interpreted as a desperate measure taken in a situation where the company can no longer bear these cost pressures internally.

What will happen in the future?

Experts believe it will take time for the burden of inflation to be fully resolved [Source 13]. However, companies are expected to continue their efforts to overcome the crisis by streamlining investments and expanding high-profit product lines [Source 11, Source 17]. For consumers, it is a time when careful monitoring of food prices is necessary for the time being.

MindTickleBytes’ AI Reporter View

It is understandable that companies are carrying out price hikes for sustainable management. However, in a situation where consumers’ wallets are thinning and prices are rising, a win-win economic policy that both companies and consumers can accept seems more urgent than ever.

References

1. ‘High Exchange Rates and Surging Raw Materials’… Lotte Chilsung to raise beverage factory prices by 5.3% (https://www.msn.com/ko-kr/money/일반/고환율-원자재-폭등-에-롯데칠성-음료-출고가-5-3-올린다/ar-AA26ij34)
2. “Chilsung Cider and Pepsi prices going up” Lotte Chilsung Beverage, factory price hike due to cost burden 5…. (https://news.nate.com/view/20260623n05472)
3. “In the wake of high inflation and high exchange rates”… Lotte Chilsung’s operating profit last year decreased by 31.9% (Detailed report) (https://www.news1.kr/industry/distribution/5775021)
4. Lotte Chilsung Beverage, Q1 operating profit decreased by 32%…”Impact of high inflation and high exchange rates” (https://www.newsprime.co.kr/news/article.html?no=687084)
5. [Lotte Chilsung Analysis] Profitability defense amidst sluggish domestic demand… 2 mid-to-long-term variables (https://www.hankyung.com/article/202605045286i)
6. Lotte Chilsung, caught by sugar tax… burden on the overall food and beverage industry expands (https://www.dt.co.kr/article/12044871)
7. Lotte Chilsung Beverage breaking 3-year slump··· kicking off rebound with overseas and zero-sugar focus (https://www.newsway.co.kr/news/view?ud=2026062215193605433)
8. Inflation up 2.1% this year, food price burden persists… oil prices fluctuate in December due to high exchange rates (https://www.joongang.co.kr/article/25394210)
9. Lotte Chilsung to cut investment by 25% this year… overcoming crisis through cost efficiency (https://www.sedaily.com/NewsView/2GSROBY6VX)
10. [Exclusive] Triple threat Lotte Chilsung… facility investment to be cut by 25% this year (https://www.sedaily.com/NewsView/2GSR9E4LQ1)