Calbee to Raise Prices of Potato Chips on Hot Weather
(Bloomberg) -- Japanese snack company Calbee Inc. will raise the price of some of its potato chip products by between 7% and 10%, citing a decreased potato harvest in the northern agriculture-heavy island of Hokkaido due to hot weather and low rainfall. The food maker will also reduce the net weight of some products including its signature potato stick snack “Jagarico” by about 5%. The revised prices and weights will take effect on January 24.
Calbee also cited a sharp increase in raw material prices and logistic costs for its price hike and weight reduction. The company says it “found it difficult to keep product prices and weights where they are,” despite “the utmost efforts to absorb rising costs.”
Back in 2017, Calbee temporarily suspended the sale of some potato chips due to a bad crop in Hokkaido. After the announcement, demand for the snacks surged, with products offered for six times their retail price on online marketplaces.
The company also disclosed on Friday its earnings results for the second quarter and announced a share buyback plan of as much as 12 billion yen ($106 million). Shares had risen as much as 8.7% as of 2 p.m. Tokyo time Friday, the biggest intraday climb since July 2020.
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