20 June 2007
Dubai: Al Rawabi Dairy Company, which earlier this month raised and then retracted a hike in milk and juice prices, has announced a fresh increase in juice prices.
Al Rawabi is the market leader and any price increase by it may be followed by other dairy companies.
A retail chain told Gulf News yesterday that Al Rawabi has increased juice prices by about 15 per cent.
Al Rawabi general manager Ahmad Al Tijani refused to respond when Gulf News asked him about the fresh price hike.
The company has been trying to revise prices of its products for a few months.
The Ministry of Economy in March warned local dairy firms not to raise prices of essential commodities, saying such moves were "harmful to consumers and the national economy".
Costs
At the time of the previous price increase, which was to become effective on June 5, Al Rawabi cited increases in the costs of raw materials, packaging and transportation expenses as the reason for its decision.
In the earlier notice, Al Rawabi had increased prices across a range of products. Within days, it sent another letter to retailers saying "the price increase will be postponed until further notice."
Now, Al Rawabi has gone back to retail stores saying it will go ahead with the increased prices of fruit juices.
A spokesman for LuLu Hypermarkets said it will not keep Al Rawabi products on its shelves at the new prices. "Now they have stopped supplies to us," he said.
Johannes Holtzhausen, chief executive officer of Spinneys, said he was not aware of the latest juice price increase by Al Rawabi. "If they increase the price, I will make a decision based on what suits my organisation and customers," he said.
By Shakir Husain
Gulf News 2007. All rights reserved.
