Recently, Hangzhou Dingjin Food Co., Ltd. issued a notification letter, saying that the suggested retail price of Master Kong's packaged tea/juice series will be adjusted from 3 yuan/bottle to no less than 3.5 yuan/bottle, and the recommended retail price of 1L tea/juice series will be adjusted from 4 yuan/bottle to no less than 5 yuan/bottle. This news sparked heated discussions on the Internet, and neither Master Kong's official customer service nor Taobao flagship store customer service confirmed the authenticity of this price increase news.
According to analysis, the rising cost may be one of the reasons for Master Kong's price adjustment. In recent years, affected by factors such as rising costs, there have been frequent news of price increases in the beverage field, and low-priced beverages are gradually disappearing. Master Kong's customer service mentioned that due to the rise in raw materials and labor costs, the national retail price will be uniformly adjusted. Since the beginning of this year, sugar prices have continued to rise, with the sugar price index rising 9.8% in September compared to August, reaching the highest level since November 2010. Although the sugar price index fell by 2.2% month-on-month in October, it was still 46.6% above the level of the same period last year.
In addition, due to factors such as rising costs, there are frequent price increases in the beverage field. In May this year, brands such as Coca-Cola also raised prices to varying degrees. In recent years, brands such as Nongfu Spring and Yuanqi Forest have launched new products with prices of more than 5 yuan. Nowadays, the price of bottled drinks is concentrated between 3 yuan and 7 yuan, and there are only a few kinds of products around 3 yuan, most of which are tea and fruit juice drinks under Master Kong and Uni-President. In some convenience stores, drinks under 3 yuan have "disappeared".
Consumers are more sensitive to the price of beverages, especially when it comes to cost-effectiveness. When adjusting prices, brands need to fully evaluate market acceptance and brand image in addition to cost factors. At the same time, brands can balance cost pressures and consumer demand by improving product quality, increasing product line diversity, and optimizing the supply chain to ensure that they remain competitive in the fierce market competition.
Due to rising costs, it has become an indisputable fact that the beverage industry has generally increased prices. However, it has also led consumers to think about product quality and price. When adjusting prices, brands need to consider consumers' purchasing power and recognition of the product. Therefore, brands should pay more attention to improving product quality and increasing the diversity of product lines to meet consumer needs.
Internationally, similar price increases in the beverage industry are also occurring, largely due to the rise in raw material prices. By learning from the international approach to this problem, we can learn from Xi and learn from it to provide some inspiration for China's beverage industry.
In general, price increases in the beverage industry are ultimately caused by rising costs. When adjusting prices, brands should fully consider market demand, improve product quality, and seek a balance between cost and price. The government should strengthen the supervision of raw material price fluctuations to maintain market order and protect the rights and interests of consumers.