Pepsi and Coke not to hike prices

An agreement has been reached between the Ministry of Economy (MoE) and both Pepsi and Coca-Cola to fix the price of 330ml can at Dh1 at all distribution outlets beginning yesterday.

Mohammed Abdul Aziz Al Shehi, MoE's Director-General, said: "The MoE will fine outlets that do not adhere to the revised price – which is Dh1 for a 330ml can."

"An agreement has been signed with Dubai Refreshments stipulating to return to the former price, which is Dh1 for the small Pepsi can. A similar agreement was reached a few days ago with Coca-Cola. The deal with the two companies requires the two firms to reach a new marketing mechanism with distribution outlets to provide value-added purchase operations in the interests of consumers," he said. "The MoE, in co-operation with different local bodies, will monitor the selling prices at all distribution outlets. And outlets violating the agreement price will be fined."

Al Shehi has urged consumers to defend their rights and inform about outlets that violate the agreed price.

The prices of Coca-Cola and PepsiCo drinks had risen in the UAE and other Gulf states for the first time in decades. The price of a 355ml can of Coke in the UAE had risen from Dh1 to Dh1.25.

The increases have also been introduced in Qatar, Oman and Kuwait. Qatar is the worst hit as prices have jumped by 50 per cent, while prices in Kuwait rose by 20 per cent.

The prices of other sizes of cans and bottles went up by the same percentage in the UAE and Oman on March 1 and in Qatar and Kuwait on March 8. Coca-Cola's soft drink brands include Coke, Fanta and Sprite while PepsiCo produces Pepsi, Mirinda, 7UP and Mountain Dew. Distributors were told about the increases at end-February.

Fizzy drink prices were previously fixed for more than 30 years.

"There was a price rise from the manufacturer that we directed distributors to pass on to consumers," Dave Swan, Manager of Coca-Cola UAE, told Emirates Business. "Years of accumulating costs have put more pressure on us to raise our trade price. In response to recent reports that small grocery outlets are selling our soft drink products at prices higher than the recommended retail price, we want it to be known that we have not increased prices to the consumer and the recommended retail price remains the same." (With inputs from Rami Eljundi)

Follow Emirates 24|7 on Google News.