Alcohol prices go up as inflation soars
Aug 03, 2011
THE price of some beer and spirit brands has increased by an additional sh400 a bottle following a price revision by beer companies.
By DAVID MUGABE and SAMUEL SANYA
THE price of some beer and spirit brands has increased by an additional sh400 a bottle following a price revision by beer companies.
Both Nile Breweries and Uganda Breweries Limited (UBL) attributed the price increase for the brands to the falling value of the shilling and the high cost of living.
“It is a price increase across some brands,†said Alasdair Musselwhite UBL’s managing director.
“The average weighted price increase will be 12.95%. Increase was necessary due to increases in costs of production,†read a statement from Nile Breweries.
The Uganda Bureau of Statistics quoted the July headline inflation at 18.7% while the shilling lost about 12% of its value since the start of the year.
Beer retailers in Kenya also increased prices by between sh270 and sh405 per bottle following fixed excise tax of sh1890 for malt beer and sh1,620 for non-malt beer. The tax was imposed by the government in the 2011/2012 budget.
Nick Jenkinson, managing director Nile Breweries, said the depreciation in the exchange rate had caused an increase in the price of packaging containers as well as raw materials.
Not all brands were affected by the price increment. UBL’s products affected by the increase are Senator Extra, Guinness, Tusker Malt, Smirnoff Ice, Alvaro, Windhoek, Uganda Waragi, V&A, Bond 7, Gilbeys, Smirnoff, Richot brandy, Baileys, Captain Morgan's, Johnnie Walker Gold and Gordon dry Gin.
Nile Breweries prices affected include Nile Special and Club Pilsener, Eagle Extra & Eagle Lager, Nile Gold, Castle Milk Stout, Redd’s, Castle Lite, Castle Lager and Grolsch.
Some brands like Bell Lager have not gone up.
Fred Muhumuza, who runs a bar in Lugogo, said the omission of Bell Lager from the list of brands with price increases will cushion the effect of the changes on his business.
THE price of some beer and spirit brands has increased by an additional sh400 a bottle following a price revision by beer companies.
Both Nile Breweries and Uganda Breweries Limited (UBL) attributed the price increase for the brands to the falling value of the shilling and the high cost of living.
“It is a price increase across some brands,†said Alasdair Musselwhite UBL’s managing director.
“The average weighted price increase will be 12.95%. Increase was necessary due to increases in costs of production,†read a statement from Nile Breweries.
The Uganda Bureau of Statistics quoted the July headline inflation at 18.7% while the shilling lost about 12% of its value since the start of the year.
Beer retailers in Kenya also increased prices by between sh270 and sh405 per bottle following fixed excise tax of sh1890 for malt beer and sh1,620 for non-malt beer. The tax was imposed by the government in the 2011/2012 budget.
Nick Jenkinson, managing director Nile Breweries, said the depreciation in the exchange rate had caused an increase in the price of packaging containers as well as raw materials.
Not all brands were affected by the price increment. UBL’s products affected by the increase are Senator Extra, Guinness, Tusker Malt, Smirnoff Ice, Alvaro, Windhoek, Uganda Waragi, V&A, Bond 7, Gilbeys, Smirnoff, Richot brandy, Baileys, Captain Morgan's, Johnnie Walker Gold and Gordon dry Gin.
Nile Breweries prices affected include Nile Special and Club Pilsener, Eagle Extra & Eagle Lager, Nile Gold, Castle Milk Stout, Redd’s, Castle Lite, Castle Lager and Grolsch.
Some brands like Bell Lager have not gone up.
Fred Muhumuza, who runs a bar in Lugogo, said the omission of Bell Lager from the list of brands with price increases will cushion the effect of the changes on his business.