The retail prices of Pepsi Cola’s popular products will be hiked by up to 50pc, with effect from January 1, on higher raw material and distribution costs, the bottling firm Dubai Refreshments Company said.
The price of 355ml can will go up by 50 per cent to Dh1.50, the Dubai-based company said, in a trade notice dated December 27. However, the retail price of a 2.25 litre bottle will only go up by 25 per cent or Dh1 to Dh5.
The Ministry of Economy has given its approval to the new prices, the bottling company claimed, under which the 355ml can and the 300ml bottle will have a retail price of Dh1.50 each instead of Dh1.
“After exhausting all viable means to absorb the incremental cost of raw material, manufacturing and distribution for the longest period possible, it is no longer economically feasible to keep our current pricing structure,” Scott Taylor, Trade Manager at the Dubai Refreshment (PSC) said, in a letter to traders informing them of the company’s decision. The bottling company has informed retailers that only stocks with the new price code could be sold for revised prices and old stocks will continue to be retailed at old prices.
Meanwhile, Pepsi is launching its products in one litre category, which it said will be available for Dh3. Coke Cola, its arch rival, sells its one litre bottle for Dh2.50 per bottle. Grocery owners say they are not surprised by the new prices. “There were rumours about it for a couple of weeks now,” one grocery owner said.
Pepsico could not be reached for a comment.