Harim in dilemma over premium instant noodles amid growing pressure to lower prices
Harim Group Chairman Kim Hong-guk introduces his premium brand The Misik's instant noodles products at Harim Tower in Gangnam District, Seoul, in this 2021 file photo. Courtesy of Harim
By Kim Jae-heun
Harim is facing a dilemma over its premium instant noodles, launched under the brand The Misik, as the government intensifies pressure on instant noodle makers to lower their prices in line with falling international wheat prices, according to industry officials, Tuesday.
Harim and other food firms have been in the hot seat after Economy and Finance Minister Choo Kyung-ho suggested local instant noodle makers lower the prices of their products, Sunday, as wheat prices have decreased recently by around 50 percent compared to six months ago. The companies have been criticized for hiking instant noodles prices, citing higher costs of wheat and other raw materials, but they are reluctant to lower prices when they pay less for raw materials.
Harim is reportedly still struggling to make profits with The Misik products, which have largely failed to attract consumers' attention since launching in 2021, and the government's pressure to cut prices will not help the company make a turnaround.
“The current situation is negative for premium instant noodle makers, which need to uphold their prices, which are two to three times more expensive than others,” a local food firm official said.
“Nongshim's Shin Ramyun Black faced a similar dilemma in 2011, when the government asked the companies to cut the price of their instant noodle products. The company eventually closed down its production facility for its premium instant noodles. Although it was affected mainly by exaggerated advertising, consumers' protests against the company's attempt to increase overall instant noodle prices played a part too,” he said.
Harim's premium instant noodles product The Misik / Courtesy of Harim
Harim said it will not be greatly affected by the government's pressure as it didn't increase the price for The Misik products when the wheat price shot up last year.
“We take only 1 percent of the market share in the instant noodles market, so the pressure to lower the price of our premium instant noodles won't hurt our business,” a Harim official said.
According to market research firm Nielsen IQ, Harim's The Misik products did not rank in the top 20 for sales of instant noodles in 2022.