Coca-Cola Bottlers Japan Inc. said Monday (May 25) it will raise prices on 165 products from September, citing surging raw material and energy costs linked to prolonged tensions in the Middle East.
The increases, ranging from 3.2 percent to 18.7 percent, will apply to flagship Coca-Cola products as well as bottled and canned coffee and tea beverages, the company said.
Rising prices for naphtha and aluminum, key materials used in plastic bottles and cans, along with persistently high energy costs driven by instability in the Middle East, have continued to squeeze margins, according to the company. A weak yen has further compounded import costs.
As it became increasingly difficult to absorb the higher costs through internal efforts alone, the beverage maker decided to pass part of the burden on to consumers.
Cost pressures are rippling across Japan's food industry. Major meat producer Itoham Foods Inc. said earlier it would raise prices on 220 items from July, including ham and sausages, adding to a string of similar moves by food companies across the resource-poor nation.
(Source: Xinhua)
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