Local soda prices increase...Bottling Company blames increased production costs
By Joyette Mills-Ward
Business Reporter-SKNVibes.com
Basseterre, St. Kitts – Retailers and consumers were taken aback by Friday’s announcement made by the St. Kitts Bottling Company Ltd. that the price of their products were to be increased effective today (Sept. 1).
The Bottling Company made the general announcement on August 29, three days before the new prices came into effect, and according to some vendors, too short of a notice period.
According to the release issued by the company, 24-count cases of the 20 ounce bottles and the 8-count cases of the 2 litre bottles of Coca-Cola, Sprite and Fanta previously sold for EC $40 per case would now be sold for EC $52.
The regular 24-count cases of Sparkle sodas (which comes in Lime, Banana, Red and Cream Soda flavours and Soda & Tonic water) have increased from $44 to $52.00.
In the notice placed in newspapers circulated on Friday and Saturday, the company cited increases in major operating expenses as the reason behind the price hike of the popular beverage.
“The St. Kitts Bottling Company, like all other manufacturing companies locally and abroad, has been plagued with major increases in the cost of raw materials, fuel and oil, electricity, freight charges and other major operating expenses especially within the past two years.” 
It went on to say that continuing to absorb the significant increases would “gravely affect [the company’s] financial situation”.
During an on-air interview, Chief Operations Officer, Gene Howell explained that the price of the major components of production including the shells used to make the bottles; the bottle caps; and the packing material, had ‘gone through the roof’. He expounded by saying the cost of bottle caps alone had seen a recent increase of 113%.
Howell addressed the issue of short notice, indicating that the three days between the price augmentation notice and the effective date was “sufficient and in keeping with previously set company protocol”.
In anticipation of a rush by retailers to stockpile the product at the regular price before the increase took effect, Howell said the company had carried high stock levels of the sodas.
SKNVibes spoke to some vendors who sold the products and they indicated that although they were told about the impending rise by Sales and Delivery personnel making the rounds early on Friday, they did not feel obligated to hoard the products.
Ancel Sookhai, Chief Executive Officer of St. Kitts Bottling Co. Ltd spoke to SKNVibes indicating that an initial backlash resulting in a decrease in the level of sales on the local market was to be expected. He elucidated that the new prices were still “very competitive” when compared with similar imported products.
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