Inflation: vendors of alcoholic and soft drinks bemoan rising costs and declining sales

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Following nationwide price increases by bottling businesses, a number of liquor and beverage distributors and retailers have expressed dissatisfaction with the low level of consumer support for their products despite skyrocketing costs.

In a Saturday interview with the News Agency of Nigeria (NAN) in Lagos, the stakeholders stated that prices had increased by 100% from the same period in 2023.

Already, the bottling businesses have sent out notifications on an upward pricing review.

According to NAN, the price of a 50-cl pet bottle of various soft drink brands is N300 at the moment, up from N150 in 2023.

Additionally, the price of alcoholic beverages, such as beer in cans (now set at N700), was previously N400, and the price of a can of malt drink went up from N250 to N400.

In a similar vein, the firm selling intoxicants saw a nearly 100% price increase from N350 to N600 throughout the assessment period.

Supermarket owner Mrs. Mercy Igalawuye observed that her store’s sales of the products had significantly decreased, down 30%.

She tasked the administration with managing nationwide inflationary pressures and conducting an all-encompassing examination of the nation’s economy.

Since God and the government are the only ones who can aid us currently, let them investigate areas where they can assist.

“Even basic necessities like food and shelter are becoming scarce, not to mention luxuries like soft beverages. Because of this, it’s critical that the government step in before things completely spiral out of control for the general public, the speaker stated.

A dealer named Mr. Seun Asaolu observed that the price gyration of these goods was adversely impacting daily sales.

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“We have to review costs by the evening if a client pays for products this morning to make sure we are still in agreement; if not, we incur losses.

“When I went to stock this week, the rates had increased from when I had quoted for a client earlier in the month for an event that was scheduled for next month.

Thus, this has been creating issues for clients, vendors, and event planners.

“If the economy doesn’t stabilize as soon as possible, the event industry will face significant challenges in the future,” he stated.

Mrs. Ngozi Ogbunachara, a distributor, confirmed that while prices had increased, sales had decreased, especially since the start of the year.

According to Ogbunachara, the cost price paid to the many bottling businesses meant that the business’s profit margin was negligible.

She also mentioned that compared to the same period in 2023, there were almost 50% more retailers on credit.

She pleaded with the government to make sure that the price of food, beverages, consumables, and other necessities that are necessary for survival is kept low.

A hawker named Mrs. Fikayo Obalolorun claimed that sales had decreased significantly from a few weeks prior, when harmattan devastated the city.

Since the start of the hot weather, Obalolorun noted that the hours of 10:00 a.m. to 4:00 p.m. had seen the highest sales.

Despite less sales than previously, she claimed to have generated an average of N6,000 per day from her business.

She also looked for quick fixes for the nation’s economic problems.

Additionally, according to NAN, headline inflation increased to 29.90% in January 2024, 0.98 percent higher than the 28.92 percent reported in December 2023. (NAN)

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