Aujan Industries, the manufacturer of Vimto syrup, said yesterday that Union Cooperative Society's report regarding its price increase policy was not correct.
An Aujan statement said: "Vimto across the GCC is sold to retailers with a fixed list price of SR88.50 [Dh86] per case [12 bottles/case].The recommended minimum retail selling price is SR7.40 [Dh7.25] per bottle.
Aujan Industries does not extend any special price discounts and/or rebates to any retailer over this list price. Variations of retail prices are due to the traffic building promotions of the retailers and which are funded by themselves." The statement added: "The price increase was notified to all our retail partners in April 2006, and is not a recent announcement, which is verified with the picture of the letter featured in the article.
"The price increase is in no way connected with Ramadan. This decision has been taken earlier this year to compensate against drastic increase in costs of raw materials [mainly sugar] and other items, over the years which have been absorbed by us." The statement said Aujan Industries operates two manufacturing plants, one in Dammam, Saudi Arabia, and the other at Dubai Investments Park (DIP) in Dubai.
"The DIP plant was opened two years ago, not two months ago, as was stated and neither is it located in Jebel Ali Free Zone. Our supply to cooperative societies across the UAE has been consistent, and has not been suspended. As a matter of interest 1,516 cases were delivered last week to Union Cooperative, Dubai.
"Vimto is being used by the Union Cooperative Society in a bundle offer, with their private label cordial brand which goes against the spirit of partnership and is a clear violation of the Vimto logo and trademark rights.
"As for the customers' demand, we believe that the retailers should respect the consumers' right to choose which brand they would prefer to offer to their families, particularly during this special season," the statement added.
By Emirates Today Staff
© Emirates Today 2006
