By Elsa Baxter
The price of a can of Coke is now SR1.50 - the same as a can of Pepsi cola.
Soft drinks giant Coca-Cola has followed its rival Pepsi by raising the price of a can of cola by 50 percent in Saudi Arabia.
The price of a can of Coke now costs SR1.50, up from SR1 – exactly the same price hike Pepsi brought in almost a week ago.
“We have raised our prices because we can no longer afford to shoulder the increasing cost of ingredients and raw materials,” Sami Kobe, pre-sales manager at Coca-Cola Bottling Company’s Riyadh office, told Arab News.
“The prices of ingredients including sugar and packaging materials such as plastic and glass have risen dramatically over the past year. This is why we can no longer keep the price at SR1,” he said.
However, Kobe admitted that Pepsi’s decision to raise prices had forced them to match it.
“The leader in the kingdom in terms of soft drink sales is Pepsi so when the leader makes a change, all of its competitors should change as well to keep the market competitive,”
Pepsi said the rising cost of raw materials had forced it to raise its prices for in the kingdom for the first time in 30 years.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
I think, if I am paying more then why not buy other drinks. Alternative stick to water...best for health
Coke should have held off for one month afterwhich they would have a very good indication of brand switching and defection to the less expensive cola, not to mention huge amounts of trial by loyal Pepsi drinkers. They might have picked up some significant share points as a result.
Well I support this because if drinks are more expensive people might switch to water or to a healthy alternative. And also it makes sense since everything else price has increased so why not a can of soda. Malbari tea used to cost 50 fils now it is 1 dh
It's high time to activate the ban for Pepsi & Coca Cola. Look for local manufactured drinks or healthy drinks.
I would understand if the price hike was in 2007 when consumer goods prices crisis was. But now with the economic crisis it's well-known that all suppliers of raw materials have cut down on their prices, some with more than 50%. I think Pepsi was wrong to have used that excuse, forgetting that they are not the sole manufactuerers of consumer goods in Saudi Arabia.