Ottogi lowers prices of instant noodles despite soaring costs

Ottogi's Jinjja Jjolmyeon / Courtesy of Ottogi

By Kim Jae-heun

Ottogi has decided to cut the price of its dry instant noodle product Jinjja Jjolmyeon ahead of the summer's peak season, surprising many food industry officials, as all other instant noodle makers have hiked their respective prices, according to company officials Monday.

The price of Jinjja Jjolmyeon, or spicy cold chewy noodles, decreased by 10.5 percent from 1,900 won ($1.44) to 1,700 won ― only at convenience stores as of April 1 ― becoming the first food company to charge consumers less in recent years. A bundle of the product, consisting of four packs will cost 6,800 won, 800 won lower than the previous price.

“We have decided to lower the price of Jinjja Jjolmyeon after considering various benefits in marketing aspects. But this is only at convenience stores and we are running other promotional events to give discounts to large discount stores,” an Ottogi official said. “But we do not know exactly how the company was able to lower the price when everything has gone up. Our sales department can give a better answer.”

Jjolmyeon is one of Korea's favorite noodle dishes in the summer season. Ottogi has lowered the price of its instant noodle version of Jjolmyeon to gain price competitiveness over its rivals Paldo's Paldo Bibim Men and Nongshim's Baehongdong Bibimmyeon.

According to data released by Nielsen Korea, the local market share of spicy noodles, or bibimmyeon, is led by Paldo with a 53.5 percent share, followed by Nongshim at 19.1 percent and Ottogi with 11.4 percent.

Paldo is in a dominant position and Nongshim and Ottogi are fiercely competing against one another for a concrete second spot.

Nongshim has yet to reveal its plan to lower the price of its instant spicy noodle product.

Meanwhile, the government has consistently requested local food firms to cooperate in stabilizing food prices amid the rising cost of living in the first half of this year. Ottogi seems to have responded to the government's policy too.

Though, the company said it has no plan to lower the price of other instant noodles including its steady-seller Jin Ramen, Spaghetti Ramen and Yeul Ramen.