Major Japanese snack food maker Calbee Foods Co. said Thursday that it will raise prices of its mainstay products as early as November.
The markup on the products, which include potato chips and "Kappa Ebisen"snacks, reflects surging prices of raw materials such as cooking oil, Chief Executive Officer Yasuo Nakata said at a meeting to announce the company's financial results.
Calbee reduced the portion sizes of its snacks in January last year to effectively raise prices after a poor potato harvest in Hokkaido, northern Japan.
"Production costs will go up by some 2 billion yen this year due to highflying raw material prices. We have no choice but to pass that hike on to product prices,"Nakata said.
Product prices are expected to increase 5 to 7 pct, according to Nakata. The retail price of an 85-gram bag of potato chips will be about 152 to 155 yen, up from the current 145 yen.
The markup on the products, which include potato chips and "Kappa Ebisen"snacks, reflects surging prices of raw materials such as cooking oil, Chief Executive Officer Yasuo Nakata said at a meeting to announce the company's financial results.
Calbee reduced the portion sizes of its snacks in January last year to effectively raise prices after a poor potato harvest in Hokkaido, northern Japan.
"Production costs will go up by some 2 billion yen this year due to highflying raw material prices. We have no choice but to pass that hike on to product prices,"Nakata said.
Product prices are expected to increase 5 to 7 pct, according to Nakata. The retail price of an 85-gram bag of potato chips will be about 152 to 155 yen, up from the current 145 yen.
