London calls on retailers to sell products at suggested price
December 18, 2012

London calls on retailers to sell products at suggested price

Retailers of products from the St Vincent Brewery Ltd are being asked to sell drinks at the suggested retail price.{{more}}

This is in relation to the latest price increase in the brewery’s products, including Guinness Stout and Hairoun Beer.

Shafia London, regional commercial manager at St Vincent Brewery, said at a press conference Thursday that some retailers have not been abiding by the suggested prices.

This, despite the brewery’s efforts to list the suggested retail price of products whose prices have increased.

“We, therefore, whenever there is a price change, all of the suggested retail prices are published and we would inform customers (retailers) what the suggested retail prices are,” London explained.

And they expect that the drinks would be sold at that suggested price, she added.

However, this has not been the case with some retailers.

She further explained that the retailing of products from the brewery should be more than just about profitability.

“… and we are in a market where it is not the best economic time. We have been hearing this over and over again that we are in a stagnated economic period, so that is fair that our customers (retailers) understand that it is not just about profit, but how affordable our products are to consumers,” London said.

“So we are encouraging them to abide by our suggested prices,” she said, adding that the brewery has started a price compliance programme, which includes advertising to educate the public on prices.

“So when you go to purchase you can demand that price because that price is affordable and it is also fair to the retailers.”

London also said the brewery was offering various incentives for them to continue to sell their drinks by the suggested prices because their volumes will definitely increase if their prices are attractive.

“Price compliance is one of the areas of keen interest to us as a company, because it reflects what our consumers are paying for our products. It is not just about profitability of the company, but the entire market being regulated,” London said.

She attributed the recent price hikes in the brewery’s products to increased production costs, particularly over the last four years.

“We would have absorbed the cost over the years,” London said.

But it would have become inevitable sooner or later that the company could no longer be able to do this in order to try and operate with a profit.

She further explained that prices have not increased by much, adding that the last increase was between six and seven per cent. (DD)