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Business News of Friday, 6 April 2001

Source: GNA

"Breweries must consult bar operators in fixing prices", NADBOA

The National Drinking Bar Operators Association (NADBOA) on Friday accused breweries, which announced new prices this week of not consulting barkeepers before making the announcement.

NADBOA said, even though, Ghana is a free market economy, as retailers, it was important for the breweries to consult the Association since they form an essential link in the production chain.

Mrs Elizabeth Kusi-Aidoo, First National Vice-President of the Association, speaking at the second anniversary celebration of its Tema District branch, said the lack of consultation is an indication of poor customer relationship on the part of the breweries.

The breweries on April 2, increased the retail prices of beer from three thousand five hundred cedis a bottle to four thousand cedis due to increasing cost of production from new fuel prices and depreciation of the cedi, which affects the importation of malt and barley.

NADBOA said the profit level of 200 cedis on a bottle of beer was too low considering facilities and services its members have to provide to customers.

Mrs Kusi-Aidoo reminded the breweries that NADBOA is a force to reckon with citing that if all the 2,000 drinking bars in Accra alone refuse to sell their drinks, the breweries would collapse and the government would lose revenue.

Mr Asamoah Buah, Tema District Chairman of the Association said the branch collected 37 million cedis in taxes for the Internal Revenue Services (IRS) last year representing a 15 per cent increase over last year's.