It sucks for some as chips to cost more

Calbee potato chips and other snacks may cost more in Hong Kong after the Japanese firm said it will raise prices of its products by 5 to 20 percent in September in its home country due to increasing material costs.

Tokyo-based Calbee has already raised prices several times this year due to a bad potato crop and higher material costs. It said it is struggling to absorb costs that are climbing at the fastest clip in years.

To the dismay of chip lovers, it also cut down bag sizes early this year.

Since its launch in Hong Kong in 1976, Calbee has quickly become the city's leading potato chips brand, capturing around 40 percent of the market share.

Calbee's local distributor, Four Seas Group, did not say whether the products will cost more in Hong Kong.

Four Seas admitted the global market has been facing pressure from skyrocketing costs in raw materials, energy and logistics.

"Calbee adopts different marketing and pricing strategies in different markets around the world. We have no supplement on the situation regarding the Japanese market," it said.

Calbee's signature products include chips, Jagabee fries, shrimp crackers, corn fingers and vegetable fries, all with a wide range of flavors. Its Hot & Spicy flavored chips - known as "Hot wave" in Chinese - are popular among Hongkongers. Their formula has been altered to fit the local appetite.

By 2010, over 30 million packs of "Hot wave" chips had been sold and a new "Super! Hot wave" edition was launched in 2020.

Since 2020, Calbee Hong Kong has also marketed special chip flavors, including roast goose, wanton noodles, shrimp paste and cha siu rice.

Potato chip lover Mark said he is sad about the price rise, but added he will continue to support the brand. He added: "I'm 32 years old and 'Hot wave' does not just taste good, it evokes memories of me growing up with this snack - from the time I was in school to now that I go to the office. I still keep several packs at my office as a stress reliever.

"As a consumer I'd want the price to be as low as possible. But we know costs have gone up so it's reasonable for it to raise prices. I can still afford it."

Another Japanese food giant Nissin, which specializes in instant noodles but also sells chips, said two weeks ago that it raised prices for some products by less than 10 percent in April, adding it did not expect to further increase prices this year.

Calbee's move has also raised concerns on prices of other potato products and restaurant menus, especially when the world's third-largest potato producer, Ukraine, is battling a Russian invasion.

A McDonald's spokesman told The Standard: "The supply of fries at all McDonald's restaurants in Hong Kong remains normal. We will ... endeavor to maintain the stable supply of our products."

Hong Kong Federation of Restaurants and Related Trades president Simon Wong Ka-wo said the rise in potato prices has also affected local restaurants.

"Potatoes are widely used in eateries, whether for Western or Chinese cuisine. Even cha chaan teng uses a lot of potatoes," he said.

"Although not a lot of imported potatoes come from Ukraine, the tight global supply will affect prices of potatoes from other manufacturing companies too."

He said the Russian-Ukraine war and ongoing Covid pandemic have generally driven food prices up.

"Over the past three months, prices for raw ingredients have gone up 15 percent overall, with some surging 30 percent or more," he said.

jane.cheung@singtaonewscorp.com