Saturday, February 04, 2006

25% increase in price of soft drinks

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I took this picture at the Oman Oil Quickshop this morning. Later today I read on Omania.net that Shell's Select stores and Al Maha's Souq shops have also effected the price increase. However when I was doing my grocery shopping today at Lulu Hypermarket and later at Al Fair in MQ softdrinks were still being sold at the same prices like before.

Is this just a scam from the operators of gas station convenience shops to make evern more money from people, especially now that so many neighborhood shops have closed after the Omanisation law, or is it possible that all corbanated drink producers in Oman decided to increases their prices all at the same time?

I sent an email to the address on the note. Let's see if they answer.

Update 5/2/06:

This is the email that I sent to MCS:

I'm writing in reference to your notice in the Oman Oil Express shop stating that the price of all carbonated beverages has been increased due to supplier price increases which I saw this morning. Tonight I was in Al Fair in MQ and noticed that you continue to sell softdrinks for 100 baisas in your supermarket. Can you please explain: 1) if this price increase is only for your convenience stores, and 2) if the price increase are from the producers themselves or otherwise from a distributor? Thanks

And this is the reply I got from them today:

Firstly, I would like to thank you for taking the time to send us your queries with regards to the above mentioned subject.

Secondly, with regards to your two queries mentioned below I would like to clarify that we Matrah Cold Stores LLC. is no longer linked to the Al Fair Supermarket business as it was sold last summer to Al Seer Group Dubai operating under the Brand AL Fair LLC. So obviously you will not find that prices are in line with our Convenient Stores (Omanoil Quick Shops). I would also like to confirm that the price increases of the Carbonated Drinks were due to local distributors being hit by inflation of the variable and fixed costs such as Omanisation of Drivers, the increase of Raw materials, other ingredients and other packaging materials (As informed by the local distributors). For these reasons mentioned we the Retailers of Convenient stores (Omanoil Quick Shops) were forced to increase the selling prices to compensate for this Profit loss. And with much higher running costs than Supermarkets, Hypermarkets and Local groceries we were forced to pass this down to our consumers. And from the communication received from the distributor these cost increases were across the whole country and across all channels.

I hope that this clarifies all your queries and I would also like to take this opportunity to apologies for any inconvenience caused.

3 comments:

NiGhTFaCe said...

I noticed this at Omanoil shops, I wonder if its by the local company?

illogicist said...

Soft drinks've always been 100bz :s For as long as I remember. This is very tragic.

Ali said...

Is it me or are their prices extremely low? 0.100 bzs maaaaaaaan and I have been buying soft drinks for 0.100 R.O all my life