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June 13, 2005

Choco Pie

The Flea will engage in some journalism with a visit to the big Korean grocery store down the way. South Korean food producer, Orion has released a Choco Pie index meant to emulate the Economist's Big Mac index meant to evaluate currencies through relative purchasing power. A Canadian price comparison seems in order. Choco Pie is reportedly wildly popular in mainland China "where a box of Choco Pies is presented as a gift to well-wishers at weddings" and adding up to an impressive 60% of the Chinese cookie market.

The Choco Pie index showed that the consumer price is highest in New Zealand with its box of Choco Pies costing $3.34, trailed by Saudi Arabia with its price at $2.66, Indonesia at $2.62, and Taiwan at $2.39. They sold Choco Pie at higher prices than in Korea with its box of the chocolate marshmallow pie selling at $1.99.

A taste-test comparison with the rival Lotte Choco Pie may also be in order.

Update: Lotte have the corner on supplying my big Korean grocer. Their pies were on at C$1.99 a box which seems a bargain to me. The difficulty with the Orion Choco Pie index, whatever they may turn out to retail for when I do find them, strikes me to parallel this Economist lattenomics article. The whole point of using the Big Mac as an indicator of purchasing-power relative to the currency market in United States dollars is that in most instances the basket of goods and services needed to make one are produced locally. It seems less apt to compare the price of a Starbucks latte in two countries where the coffee is imported in both instances as this indicates more about local rents than purchasing-power. The same difficulty is yet more evident in attempting to make a meaningful comparison using a box of Choco Pies imported as a finished product.

Posted by Ghost of a flea at June 13, 2005 11:39 AM

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? big macs, wages and choco pies from asiapundit
The Economist has revised its popular, although not to be taken too seriously, Big Mac index. As well as pointing to a 59% undervalued renminbi, it notes the euro has some room to fall.:Our annual Big Mac index (see table) [Read More]

Tracked on June 13, 2005 08:02 PM