Rwanda: Oil Prices, High Demand Hike Beer Costs

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Rwanda News Agency/Agence Rwandaise d'Information (Kigali)

1 August 2008
Posted to the web 1 August 2008

Kigali

Faced with high transportation costs and increasing demand for beer and soft drinks, prices will go up effective August, the local Dutch owned drinks brewery announced on Friday.

Officials from the brewer Bralirwa told journalists in Kigali that the recent scarcity of beer and coca cola soft drinks - which it produces - was caused by the 'high demand' that has kept rising since last year.

The company enjoys sole monopoly as the only beer maker with a line of products to its name including local brands Mutzig beer and Primus beer. It also sales international brands such as Amstel, Heineken and Guinness beers.

As for soft drinks, it makes the Coca Coca line of products including Coke and different tastes of Fanta.

From August 01, the company said costs for different sizes of its products would increase by 50 Francs.

The Northern province-based company said costs of transporting these products to other provinces has become unbearable due to high oil prices. The Dutch owned firm moves thousands of crates using a multitude of long-haul tracks.

As prices run high globally, Rwanda also finds its pump prices shifting from time to time. In January, a litter of diesel was about 600 francs but is now selling at 927 Francs.

Large Primus beer is up from 500 Francs to 550, as the smaller size jumps to 300 from 250 Francs. Large Mutzig beer will now cost 750 from 700, as the smaller bottle goes for 400 from 350 Francs.

Amstel beer now sells at 500 and Guinness at 550 francs. The high-end Heineken beer will go for 1200, up from 1000 francs. As for Coke drinks, each 300ml-size bottle will now go for 250 from 200 Francs.

The company also blamed the prices hikes on the costs of products required in making beer drinks.

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However, there are also beers that come in from Uganda and Kenya but these remain for the upper-class clients because of their prices.

--
Jean-Louis Kayitenkore
Procurement Consultant
Gsm: +250-08470205
Home: +250-55104140
P.O. Box 3867
Kigali-Rwanda
East Africa
Blog: http://www.cepgl.blogspot.com
Skype ID : Kayisa66