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Wed 13 Jan 2010 08:45 AM

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Soft drinks giants raise prices by 50% in Bahrain

Coca Cola and Pepsi hike price on their drinks brands, a month after doing so in Saudi.

Soft drinks giants raise prices by 50% in Bahrain
COKE CAN: The soft drink manufacturer and its rival Pepsi have raised their prices by 50 percent in Bahrain. (Getty Images)

Soft drinks rivals Coca Cola and Pepsi have both increased their prices by 50 percent in Bahrain, just a month after doing so in Saudi Arabia.

Cans of the cola drink produced by either company now cost 150 fils instead of 100 fils, the Gulf Daily News reported.

Other soft drink brands produced by the firms have also gone up in price, including Miranda, 7-UP and Mountain Dew for Pepsi, and Fanta, Sprite and Canada Dry for Coca Cola.

"For the past 30 years, Pepsi cans have been sold to consumers in Bahrain for 100 fils. We kept our prices constant, despite the escalating cost of overheads, labour and raw materials,” bottler Ahmadi Industries general manager Ali Ahmadi told the paper.

"Naturally over the past few years, the increasing costs have put tremendous pressure on the viability of the business, hindering our ability to grow our business and employment base."

Coca-Cola Export Corporation Middle East business unit public affairs and communications manager Antoine Tayyar said: "Whether it is sugar, the flavouring or other costs, there has been a huge increase. We cannot afford to continue to offer the same prices anymore.”

Officials for both companies in Saudi Arabia said at the time the price rise was also to cover escalating costs. The price of a can of either Coca Cola or Pepsi in the kingdom now costs SR1.50, up from SR1.

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Kenneth John 9 years ago

A can of coke or pepsi will cost you GBP 1 from any vending machines in the UK, therefore, a price hike of 50% seems reasonable and long overdue in the Middle East. Welcome to inflation.

Prince of Arabia 9 years ago

I am quite surprised and suspicious of this move, first of the cost of labor and raw material has not gone up in the past year, these input costs are linked to oil prices which have more than halved from the peak and is still well below the 150 dollar mark! Why is there an increase in overhead, usually these are general management expenses and marketing costs, we are all aware theat advertising costs are down, salary levels in the countries have cooled.... What is even more suspicious is that both companies came forward with the same conclusion indicating an informal agreement between those giants, this is an oligopoly in the beverage market and consumer is the victim. Indeed we are witnessing a price manipulation move without any merit. What is more depressing is that there is no competent body in the region that oversees these actions and verifies the claims. A mere comparison to the price of Coca or Pepsie produced in the UK is not an indication as Kenneth indicated iven their input costs are different, not to mention the taxation effect.

9 years ago

These products have been sold over the last 20 years for 1 Riyal and the cost was very very low and these company used to make a lot of money from it, and now becuse some of the row material gous up by so litile thay decied to increas the price by 50%, its shame on these company to disapoint them loyal customers.

Nick 9 years ago

What's the point of raising the cost when anyways most of the cans are sold in retail at a considerable hiked price and at restaurants with 500% margins (at least)?

Najeeb Khan 9 years ago

Less rotten teeth = less mullah for us poor dentists. And affects knickers elastic manufacturers too as tum sizes will shrink. What next?

Meri 9 years ago

I am certain that the units of cans sold in Bahrain will increase at the next audit in a year. Some products sell more when their price go up.

Alize 9 years ago

Why now ? Because they cannot make profits any more! What's the point ? Now they can charge the retailers a higher price. The average retailer will make more money also selling at higher price. Good results ? Sales volume will definately drop in the short term, but will get to normal in the near future. Keep the below in mind. 1 dhs. price point been around for over 20 years. You say why increase now, well both Pepsi and Coca-Cola have been increasing their COST PER CASE for the last few years to the trade. They reached a point now they cannot reduce it further. They have cut on advertising, sponsorships, staff salaries, etc, to make it in the last few years. Now they have no choice but to increase prices which in all honesty makes sense ! its 50 fils more, if you can't afford it don't buy it. Btw the gulf, has the chepeast coke in the WORLD ! Africa imports coke from the GULF because it is cheaper to buy from spend on transport, and still make good profits.