By Andy Sambidge
Company awaits permission from officials to increase tariffs on its popular soft drinks cans and bottles.
Coca-Cola is looking to raise prices of its soft drinks in the UAE but is waiting for permission from the Ministry of Economy, it was reported on Monday.
The company is seeking to introduce increases of 50 fils to AED1.50 for small bottles and AED1 to AED5 for family-size bottles.
"Our UAE partner, Al Ahlia Gulf Line (AGL), manufacturer and distributor of Coca-Cola products in the UAE, is still waiting for approval from the UAE Ministry of Economy for a price adjustment," spokesman Antoine Tayyar said in comments published by Emirates Business.
The move follows price hikes on both Coca Cola and Pepsi products in other Gulf countries over the past few months.
In January, it was reported that in Bahrain and Saudi Arabia, both companies have increased prices by 50 percent.
Tayyar told Emirates Business that if the UAE ministry approved the request, the company would then decide the date when the increases would come into force.
"AGL cannot impose retail pricing on shopkeepers. It does, however, have recommended prices and the ministry plays a role in ensuring that shopkeepers sell at these levels," he said, adding that the rising price of sugar had impacted the company's business.
3-4 years back both Pepsi and Coca-Cola had simultaneously lanuched 500ml bottles for AED 2.00 The move was to increase revenue, as the previous bottle of 300ml was selling for AED 1.00, which they had stopped supplies of when the 500ml bottled was launched. However, both Pepsi and Coca-Cola had to get the 300ml bottle back on the shelves, since people stopped going for the larger-sized inidividual bottles, as it was just too big for a single person. I believe the Ministry should allow the price increase, as it would act as a deterrence to people who consume these trashy cola drinks on regular basis. Health is a national priority, and as such measures such as higher prices should be implemented. However, the increase in prices should be in the form of a 'tax' and the MNCs should not be allowed to pocket it. The tax collected should be utilized for research for better health.
It's time to increase the price - it's ridiculous how cheap it is in comparison to other markets - hopefully the price increase will deter children from drinking so much of the stuff.
I BEG TO HIKE THE PRICE TO AED 5 PER 300ML BOTTLE / CAN. SO THAT THE 'NEXT GENERATION' SWITCH TO A HEALTHY 250ML BOTTLE OF MILK. FROM THE DAY I COULD REMEMBER (BEING IN UAE ALL MY LIFE) IT'S BEEN AED 1/- IN ANY NORMAL GROCERY OR SUPERMARKET. OTHER THINGS WHICH WERE CHEAPER THEN ARE HIGHER IN PRICE NOW. SO WHY CAN'T THE GOVT. INCREASE THE PRICE OF COKE / PEPSI & OTHER SIMILAR PRODUCTS, AS THEY DID WITH CIGARETTES TO SAVE THE HEALTH OF THE PEOPLE ESPECIALLY KIDS.