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An across the board increase in the price of alcoholic beverages produced by Walu Bay-based Fosters Group Pacific Ltd (FGPL) becomes effective today.
The price increase was announced last week at the South Pacific Stock Exchange, where FGPL, a subsidiary of Australian beverage maker Fosters Group Ltd, is listed.
FGPL director Ross Shaw had announced an increase in the price of beer by five percent, ready-to-drink beverages by eight percent and spirits by 10 percent.
Shaw said the increase was necessary in order to minimise the impact of the devaluation of the Fiji dollar in April, as this had greatly impacted on the cost of import of its raw materials.
“In fact, there was an advice issued to customers that the prices will be increasing and that will offset some of the devaluation impact,” Shaw said.
“The way we approached it was we fully recognised the savings we were making through our efficiency gains and offset against the actual input cost, charges or increases we were incurring,” he said.
“And because we import a lot of our materials, we carry a certain period of stock. So when devaluation occurred, from the first of June, most of our materials will be coming in on new cost structure.”
FGPL is owned primarily by Fosters Group Ltd, which recently increased its shareholding to over 80 percent, after Fijian Holdings Ltd offloaded its 29 percent stake in the company.
