Beer price increases
Aug 19, 2007
BEER prices have increased by sh100 due to increased costs of operation.
By James Odomel
BEER prices have increased by sh100 due to increased costs of operation.
“The cost of running business has gone up. The high transportation costs of raw materials, electricity problems and high fuel prices explain the increase,†said a source.
Uganda Breweries and Nile Breweries hiked prices from the recommended retail price of sh1,400 to sh1,500. Consequently, various bars and beer-sellers have been forced to increase the price of a bottle of beer to sh1,700 from the recommended price of sh1,500.
“If you exclude last year’s price increase on non-malt brands (Eagle Lager and Eagle Extra), which was driven by the increase in excise duty from 20% to 30% effective July 1, we have had no inflationary price increase on any of our locally-produced beers for three years since July 2004,†Nile Breweries’ marketing director Mike Olsen said.
“Increases in energy costs and fuel over the past 12 months have escalated their costs of production and distribution,†Olsen explained.
“We believe the increase in the ex-factory prices of our mainstream brands, Nile Special, Club Pilsner and Chairman’s Extra Strong Brew of 7.9% are moderate.â€
BEER prices have increased by sh100 due to increased costs of operation.
“The cost of running business has gone up. The high transportation costs of raw materials, electricity problems and high fuel prices explain the increase,†said a source.
Uganda Breweries and Nile Breweries hiked prices from the recommended retail price of sh1,400 to sh1,500. Consequently, various bars and beer-sellers have been forced to increase the price of a bottle of beer to sh1,700 from the recommended price of sh1,500.
“If you exclude last year’s price increase on non-malt brands (Eagle Lager and Eagle Extra), which was driven by the increase in excise duty from 20% to 30% effective July 1, we have had no inflationary price increase on any of our locally-produced beers for three years since July 2004,†Nile Breweries’ marketing director Mike Olsen said.
“Increases in energy costs and fuel over the past 12 months have escalated their costs of production and distribution,†Olsen explained.
“We believe the increase in the ex-factory prices of our mainstream brands, Nile Special, Club Pilsner and Chairman’s Extra Strong Brew of 7.9% are moderate.â€