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Elenumeji > Blog > News > Business > High prices, low purchase as inflation hits soft and alcoholic drink dealers
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High prices, low purchase as inflation hits soft and alcoholic drink dealers

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Last updated: February 17, 2024 10:22 am
By adminbox 4 Min Read
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Some wholesalers and retailers of liquor and beverages have decried the low level of patronage of their products amidst soaring costs, following price increments by bottling companies across the country.

The stakeholders, in an interview with the News Agency of Nigeria (NAN) in Lagos on Saturday, said there had been a 100 per cent price increase when compared with the same period in 2023.

Already, notifications of an upward price review have been issued by the bottling companies.

NAN reports that a 50-cl pet bottle of different soft drink brands currently sells for N300, as against N150 in 2023.

Also, alcoholic beverages, including canned beer with a current price pegged at N700, were previously N400, while a can of malt drink increased to N400 from N250.

Similarly, the intoxicant business recorded an almost 100 per cent price increment from N350 to N600 during the period under review.

Mrs Mercy Igalawuye, a supermarket operator, noted that sales of the items had dropped considerably, by 30 per cent in her store.

She charged the government to review the national economy holistically, while addressing inflationary pressures across the country.

“Let the government look at areas where they can help, because the way it is, it’s only God and the government that can help us.

“People can barely eat or afford basic things anymore, not to mention luxury items like soft drinks. This is why it is important that the government intervene before things get totally out of hand for the masses,” she said.

Mr Seun Asaolu, a vendor, noted the gallop in the price of these products had been affecting daily sales negatively.

This development, he noted, had resulted in a drastic reduction in sales by about 50 per cent.

“If a client pays for items this morning, by evening, we have to compare prices to be sure we are still on the same page; otherwise, we run at losses.

“I had quoted for a client earlier in the month for an event scheduled for next month, and by the time I went to stock this week, the prices had gone up.

“So, this has been causing problems between event planners, vendors, and clients.

“We hope the economy stabilizes soonest, otherwise, the event industry would face serious issues going forward,” he said.

A distributor, Mrs Ngozi Ogbunachara, affirmed that prices had indeed gone up, while sales dropped, particularly since the beginning of the year.

Ogbunachara said that the profit margin in the business was minimal as a result of the cost price received from the various bottling companies.

She added that the number of retailers on credit had increased by about 50 per cent when compared to the same period of 2023.

She appealed to the government to ensure that the cost of drinks, food items, consumables, and basic essentials critical to livelihood is reduced.

Mrs Fikayo Obalolorun, a hawker, stated that the hot weather had greatly impacted sales when compared to few weeks ago, when harmattan ravaged the city.

Obalolorun said the peak period for sales since the hot weather began was between 10:00 a.m. and 4:00 p.m.

She said she made an average of N6,000 in profit from the business each day, even though people were not buying as much as before.

She also sought immediate solutions to economic challenges affecting the country.

NAN also reports that headline inflation for January 2024 rose to 29.90 per cent, 0.98 per cent higher than 28.92 per cent recorded in December 2023. (NAN)

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