TOKYO Reuters - The maker of Japan's Umaibo corn puff is raising prices for the first time, in a shock for fans of the miracle snack beloved for decades for its crunch and 10 yen price tag.
The price of Umaibo is going to be increased by 2 yen 02 apiece to 12 yen from April due to higher costs, according to a person familiar with the matter. It marks the first such increase since the snack whose name means delicious stick went on sale in 1979.
It is also a sobering reminder that Japan is not immune to soaring commodity and transport costs, even after decades of deflation. Japanese companies have been reluctant to increase prices because of the fear of losing cost sensitive customers, which is why prices are surging in the West.
Umaibo have been the same price for so long, so a 2 yen increase is a big deal, 59 year-old housewife Noriko Eda told Reuters. I was surprised. Similar to cheese puffs but shaped like a cylinder, Umaibo come in 15 flavors, from cheese to seasoned cod roe, with creamy corn soup the best seller.
Around 700 million of the crunchy sticks are sold annually, both in packs and individually. The low price has kept single sticks within the reach of children's allowances for years, and for many Japanese, the snack evokes memories of childhood or the neighborhood sweet shop.
Naomi Hosaka, a 51-year-old housewife, said it was sad that the impact is being felt on cheap snacks, even the things that children are able to buy.
Japanese companies are also being squeezed as the weak yen drives up import costs, due to higher raw material costs. Food manufacturers often react by shrinking packages instead of raising prices outright - a trend known as shrinkflation - something Yaokin did with Umaibo in 2007.
Takeshi Nemoto, who has been in charge of buying snacks at Kawahara Shoten's Tokyo snack shop for decades, said other manufacturers may have to follow suit with higher prices.
There's nothing we can do about the increases, he said. They can't stay profitable unless they raise the price, according to the manufacturer's point of view. Some fans of Umaibo saw the change as the end of an era, regardless of the economics.
Rock musician Atsushi Osawa said on Twitter that we're witnessing a turning point in history. His band, Uchikubi Gokumon Doukoukai, paid homage to the snack in a song that included texts about Umaibo's miracle price. The price has started to diverge from the lyrics, he said.