Mooncakes to cost the earth

Mooncakes to cost the earth - Beatrice Siu (The Standard - 4/9/08)

Mid-Autumn Festival celebrations will be more expensive this year, with the cost of flour and lotus paste – the main ingredients in mooncakes – going up 40 percent.

This was revealed in an MTR survey of its retailers when 12 out of 18 that sell mooncakes said costs have risen 20 percent, and packaging costs have also given up.

Tai Tung Bakery director Peter Tse Hingchi said the cost of materials has increased about 20 to 30 percent, pushing the price of a box of four mooncakes to HK$270 from HK$250 last year.

To balance the books, the bakery will give fewer discounts to customers and use boxes that were ordered two years ago.

“Leftover lotus paste can still be used after the festival,” said Tse, who is confident the price hike will not affect sales.

He thinks consumer sentiment has turned positive since the Beijing Olympics.

Marketing manager Daniel Kuit Waileung of Lin Heung Bakery said the price of a box of mooncakes has increased by HK$4 to HK$6.

To drum up sales and soften the price hikes, Kuit said the firm will throw in a free box of tea leaves.

Lantern retailer Kwan Wing-ho said prices have also increased 20 percent because the cost of materials and wages for mainland workers have soared.

But Kwan, who is the director of Po Tai Hong, expects sales to soar by 20 to 30 percent.

“Demand for traditional lanterns, such as those shaped like starfruit and rabbits, will be higher this year. Shoppers will have to pay more for them,” Kwan said.

But for some, carrying on the Moon Festival tradition is important, with or without price rises.

A housewife, surnamed Yung, said she wants to try mooncakes with new flavors, even though they are more expenses.

“I won’t compare prices as I just want to try something new,” said Yung, who was carrying two mooncakes boxes.

Another housewife, surnamed Yeung, said she would compare prices because mooncakes are 10 to 20 percent more expensive. “It’s not nice to have to pay more, but I still wish to buy the same brand of mooncakes every year,” Yeung said.
2. Summary

This news is about the price of moon cake is increased about 40 percent this year because the cost of materials and packaging cost have gone up together, among them the cost of materials is the most serious, it has soared by 20 to 30 percent. But the director of Tai Tung Bakery is confident the price would not affect the sales as he thinks customers keep the good feeling after Beijing Olympic. And the others, such as traditional lantern, prices have also increased because wags for mainland have soared. On the other hand, most of consumers do not mind the prices of moon cake.

3. Feedback

Inflation makes some of prices of goods soar nowadays, that affects our life deeply. Mid-Autumn Festival is an important traditional festival in China. Lots of families value this day very much and they would buy something to celebrate with their family members, such as mooncakes and lanterns, although the expenses of celebration will be more expensive. I think that is because the traditional ideas affect us so deeply so we will pay more money to celebrate. I deem that Mid-Autumn Festival is so meaningful because Hong Kong people are so busy and always need to work for a long time. However, they can take some time with their parents and children in this festival. They are so cheerful on sharing a mooncake together. Therefore, I think carrying on the moon festival tradition is very important. The meaning of mooncake is more important than the cake’s price.