As you may already be accustomed to from KoRo, we are transparent about price changes and like to explain the reasons behind them. You will find a price development graph (tab ‘Price development’) on our product detail pages and our CFO Daniel likes to explain — on video — how a product price is calculated. He would also explain to you that price adjustments are part of the regular business operations of KoRo – and all other food brands. Today, I'm taking over that task because, as a true mathematician at KoRo, I'm responsible for pricing – sorry, Daniel! On average, we will have to increase our prices by around 8% between spring and summer 2025. This does not affect all products, and each product will be affected differently. I'll explain why we're doing this now.
No more estimates!
As a price analyst at KoRo, the rule is: the price-performance ratio has to be right for you as the customer! Equally important: KoRo has to operate economically, otherwise we won't be able to compete in the market and may eventually no longer be able to supply you with our delicious products. Our advantage in the online shop is that we can pass on cost savings directly to you, for example through efficient logistics, thanks to our flexible pricing. We do not calculate future price increases in advance, which gives us the freedom to raise prices only when it is really necessary. However, this great flexibility and the tight margins – i.e. the share of the product price that ultimately remains with KoRo – also mean that our prices have to be regularly monitored, compared and adjusted. A comprehensive price check of our entire product range was due, and as KoRo's price analyst, I took on this task. It's perfect for me, because as a mathematician, I love numbers!
Why are some KoRo product prices changing?
Let's take a quick look at the basics of pricing: Our prices are based on the purchase price and/or our production, logistics and administrative costs.
But what you're probably more interested in is why some of our products are becoming more expensive. This is mainly due to the increased price of raw materials. Increased food prices? You've probably heard this a lot in the news recently. KoRo is also affected by this – here are a few specific examples from our range:
The price of cocoa has more than doubled worldwide since the beginning of last year, and has even tripled at times. This is due, among other things, to poor harvests caused by extreme weather conditions, which are mainly attributable to climate change. As many of our sweet treats contain at least some cocoa/chocolate, this has a certain impact on our range.
Nut prices, e.g. for almonds, Brazil nuts, cashews and pistachios, have also risen by around 20% since our last price analysis about a year ago. This is due to lower availability as a result of increased demand. More and more people around the world are discovering nuts! As nut trendsetters, we predicted this several years ago. Those who used to buy their nut butter in the exclusive niche shop KoRo can now find it at almost all retailers and brands. The change in the price of this raw material naturally has a particular impact on our product range. Many KoRo products are based on nuts.
We always order our dried mangoes a year in advance because there are only limited harvest times. KoRo is currently in the great position of becoming more and more well-known – but with growth come many new challenges and, of course, more demand. Demand is exceptionally high this year and, due to the long pre-order times, it is not so easy to reorder mangoes quickly. We therefore had to purchase them at a significantly higher price than usual, which is now also affecting our retail price.