By Elsa Baxter
A can of Pepsi now costs SR1.50, while rival soft drink firm Coca-Cola keeps prices the same.
The price of a can of Pepsi has increased by 50 percent in Saudi Arabia as the soft drink giant seeks to cover costs.
A can of Pespi-cola now costs SR1.50 ($0.40), up from SR1 ($0.27), while a 2.25 litre bottle costs SR5 ($1.30) instead of SR4 ($1) previously, Arab News reports on Thursday.
Rival drinks manufacturer Coca-Cola has kept its prices the same, the paper reports.
Abdullah Olayan, Pepsi spokesman, told the paper prices had not risen in the kingdom for the past 30 years.
“We kept our prices constant, despite the escalating cost of overhead, labor and raw materials. Naturally over the past few years, the increasing costs have put tremendous pressure on the viability of the business, hindering our ability to grow.
“If we had increased our price at the same rate as official inflation in the GCC, our prices would be much higher today,” he added.
Pepsi employs more than 7,200 people in the kingdom at four main manufacturing plants.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.
Thanks for posting more about the real possible reason why there's been a price hike. Just the sort in information that one would expect from a brief investigation by journalists at publications such as Arabian Business.