Devaluation bites as the price for beer hikes effect 1 September
The devaluation of Malawi Kwacha continues to bite as the Castel Malawi Limited has announced the hiking of prices for beer, alcohol and Spirits.
On 27th May, the Federal Reserve Bank of Malawi (RBM) announced a 25 per cent return to a market-determined foreign exchange rate regime to support dwindling foreign currency reserves, the move which came in in reaction to rising commodity prices which have hit Malawi hard, amid declining revenue from tobacco, its major export.
The development has seen prices of a lot of commodities like fuel, oil among others rising up.
On 31st August, the Castel Malawi Limited through the statement signed by the Head of National Sales, Nelson Zoto Banda, announced the adjustment of the prices of beer saying the company is strained by the high cost of production, distribution, utilities, and importation of essential ingredients due to the scarcity of forex before and after devaluation of Malawi Kwacha.
“The company is strained by the high cost of production, distribution, utilities, and importation of the essential ingredients due to the forex scarcity before and after the devaluation of the Malawi Kwacha which has brought about a total increase of 27% on the operating costs,” says Banda in the letter dated 30th August 2022.
“I would like to also take this opportunity to advice you that management has revised your on-voice margin upwards from 10% to 11% to help you increase your profitability and make more money while cushioning your operating costs to optmize your service delivery even with the reduced portfolio, ” reads part of statement.
Following the adjustment, the new price structure, beers such as Carlsberg Green and Special Brew will be selling at K900 per 330ml returnable glass bottle while Kuche Kuche, Doppel Munich and Castel beer will be selling at K700 per 330ml bottle.
The price of Alcohol including Booster Cider and Booster Banana Mama has been increased to K900 for a 330ml while that of spirits such as Malawi Gin and Malawi Vodka will fetch K7000 for 750ml bottle.
