Residents feel a bitter taste in Pepsi price hike

Residents feel a bitter taste in Pepsi price hike

Many residents in the UAE consider a sudden jump of 50 pc in the price of Pepsi can of 355ml is unwarranted and it needs to be reduced as the soft drink is the favourite drink among public.

By Anwar Ahmad And Olivia Olarte (with Inputs From Muaz Shabandri)

Published: Fri 31 Dec 2010, 8:30 AM

Last updated: Mon 6 Apr 2015, 1:59 PM

The retail prices of Pepsi Cola’s popular products will be hiked by up to 50 per cent, with effect from January 1, due to higher raw material and distribution costs, the bottling firm Dubai Refreshments Company announced on Wednesday.

The soft drink company claimed that the Ministry of Economy has given its approval to the new prices, under which the 355ml can and the 300ml bottle will have a retail price of Dh1.50 each instead of Dh1.

In a trade notice dated December 27, the company said the retail price of a 2.25 litre bottle will only go up by 25 per cent or Dh1 to Dh5.

Dr Djelloul Bellahouel from Algeria, a resident of Abu Dhabi, said sudden increase of 50 per cent on a soft drink is unwarranted. “It’s understandable that its price is being increased following inflations in sugar prices. I don’t think such a huge increase in single go is justified. It could affect its market. I did not hear a 50 per cent increase in sugar prices in one-go. This will encourage people to consume fresh juices, which are healthier than any soft drink available in the market.”

According to Ahmed Quadri, another Abu Dhabi resident, said Pepsi is most preferred soft drink of the public and those addicted to it would continue to consume, even if its price increases to Dh2. “It’s a favourite soft drink for many before their meals and while partying. I think Dh1.50 for a Pepsi can is too much, it should be reduced for common consumers.”

“Everything else is increasing and people have no choice but to concede with the new prices. The new Pepsi price will not affect my purchase since I seldom drink it. I drink it only during dinner,” said Jeanette Gonzales.

Conrad Bayer, Austrian Sales Manager, said: “It’s a well-deserved increase. Pepsi is a good product and compared to the rest of the world, we are buying it cheaply in the UAE. Soft drinks here are quite affordable for everybody when you compare them to prices in Europe and elsewhere.”

However, there were others who didn’t seem much concerned about the hike.

“I don’t think many people will object to the new prices because they have been very low for a long period of time. Compared to the UK, the prices are still cheap as a can of coke can cost as much as Dh6 in some UK shops. I guess others will also follow suit,” says Debbie, a Dubai resident.

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