Sunday, May 12, 2013

Nepali Consumers paying more than stated price for Fizzy drinks

KATHMANDU, Nepal

 Consumers have been forced to pay more despite the Bottlers Nepal advertizing that the retail price of a 250 ml bottle of Coca Cola, Fanta and Sprite has been reduced by Rs 5 to Rs 20.

Consumers are forced to pay Rs 25-30 for a bottle of these cold drinks at different places. Neither the retailers have answers for this, nor has the company, or consumer rights groups for that matter, shown interest about it. Coca Cola SABCO, through Bottlers Nepal, had received rights for bottling the beverages of the multi-national company in Nepal in 1971. The retailers claimed that the company charges Rs 20 per 250 ml bottle with them. “The company sells to us at Rs 20. How can we sell at that price? We also have to add the cost of running the refrigerator round the clock to keep it cold,” a retailer in Baneshwore said.  Not just him but all the retailers across the Kathmandu Valley charge Rs 25-30 for every 250 ml bottle of these beverages.

Botlers Nepal has been claiming through big hoarding boards and advertisements in all forms of the media that the retail price of 250 ml bottle of Coca Cola, Fanta and Sprite has been reduced by Rs 5 to Rs 20. “We must get it a lower rate to be able to sell at Rs 20,” a retailer at Thamel fumed. “The price is above Rs 30 in many small/big shops in Thamel,” he added. All retailers, with a few exceptions, are selling these beverages charging at least Rs 5 more for every 250 ml bottle. Owner of one Shiva Shakti Store in Buddha Nagar stated that he is selling at Rs 20 per bottle as he gets two bottles free while buying a crate (24 bottles). “I get a bottle at Rs 18 if I also account for the two bottles received for free. Though all retailers around here are selling at Rs 25, I am not doing so. I can sell more at a lower rate,” he explained.  

Market Manager of Bottlers Nepal Pranaya Sthapit also claimed that the company has set the retail price providing a profit margin to the retailers. “We are providing every bottle to retailers for Rs 18 at most. We have, therefore, requested them to sell to consumers at Rs 20. We have not deceived the consumers from our side,” he elaborated. He opined that the consumers themselves have to be aware about that. “We have provided such margins precisely because using refrigerator to cool it increases the cost as it is sold only after being cooled. No one can sell at a rate higher than that printed on bottles,” he stated.

 General Secretary of the Consumers’ Rights Protection Forum Jyoti Baniya claimed that consumers cannot be forced to pay more if the company has mentioned Rs 20 as the maximum retail price on the bottle or packet. “The consumers have asked even us about this. If the company as not been able to provide it to the consumers at the stated price, it cannot broadcast such misleading advertisements,” he stated. If the company has fixed the retail price at Rs 20 providing any profit margin to the retailers, he added, and the retailers are maintaining a bigger margin raising the price, the retailers are guilty.

Source: Karobar Daily, May 9th 2013

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