Castel raises beer, other drinks’ prices
Castel Malawi Limited on Sunday raised the prices of its alcoholic and non-alcoholic beverages citing rising production and distribution costs as driving factors.
In a statement signed by commercial and marketing director Chantel Akoumany, Castel Malawi Limited said the price adjustment, which comes four years after the firm last effected a major price hike, has been necessitated by increasing prices of fuel and utilities as well as the depreciation of the kwacha.
The beverages company said the hike is despite the company’s efforts to maintain the current prices.
Reads the statement in part: “Effective May 1, we will be adjusting upwards the prices of selected products in the beer, alcomix, squash as well as carbonated drinks categories due to global inflation in the operating environment.
“Despite all our efforts to maintain the current prices, we are compelled to take this decision due to the increase in production and distribution costs following the increase in price of fuel, utilities as well as depreciation of the kwacha.
According to the new price structure, non-alcoholic beverages such as Coca-cola and Fanta (300 ml), which were selling at K300 per bottle, are now going at K360 per bottle while Orange Squash is pegged at K2600 from K2200.
On the other hand, alcoholic products such as Castel beer is now selling at K600, Carlsberg Green (330 ml) is going at K700. Meanwhile, Carlsberg Chill is pegged at K900.
However, prices for some products in the alcoholic category such as KucheKuche, Doppel Munich, Shandie flavoured beer, Malawi Gin, Premier Brandy, Malawi Vodka have not been revised.
In an interview yesterday, Consumers Association of Malawi executive director John Kapito said the price hike is justified and not surprising as the economic environment is not conducive.
He said: “The rising costs of goods will be the trend as we witness a rise in inflation, weakening kwacha and high transport costs.
“Unfortunately for beverages in Malawi, they have high distribution costs and any movement in the prices of fuel has a trigger effect on prices of beverages and other products.”
Between January and March 2022, Malawi’s headline inflation rate has averaged 13.4 percent, 3.4 and 3.9 percentage points above the Reserve Bank of Malawi’s 10.4 percent target and government’s 9.1 percent target, respectively.
Similarly, the kwacha, currently trading at K825 to the dollar has continued to weaken against the dollar and other trading currencies.
Malawi Energy Regulatory Authority also recently adjusted upwards pump prices of petrol, diesel and paraffin by 20 percent, 31.25 percent and 14.47 percent to K1380, K1470 and K956, per litre, respectively.
