Liquor price increases scare customers, affects turnover

Vendors and consumers of alcoholic beverages are disturbed as the hike in alcohol price as it is affecting their business.

Regular buyers of alcoholic beverages have deserted bars while bar attendants who in the past witnessed booming sales are forced to go on break even during hours initially considered as peak periods.

In short, turnover in wine, whisky and champagne business has drastically reduced owing to the fact that prices of alcoholic beverages have increased.

The February 12, 2015 joint statement of the Minister of Trade, Luc Magloire Atangana and of Finance, Alamine Ousmane Mey, that recommended increases in the prices of alcoholic drinks with effect from February 16, 2015 has gone operational.

The release came after months of speculations on the possible increase in the prices of alcoholic products in accordance with the Finance Law which increased the Minimum Discharge Tax from 1 to 2 per cent.

One week into the effective implementation of the ministerial circular, liquor consumers in Yaounde benefitted from a period of grace declared by vendors but the story is pretty different now. Liquor shops in the Central market, are almost deserted.

When vendors were asked why, they were quick to express their frustration, threatening to back out of the business if the trend continues. Dimko Edwige observed that, though her prices are still the same; her business is witnessing a decline.

Customers have since the news of the increase in prices withdrawn from patronising alcoholic beverages. She blames this on the “excessive increases,” arguing that beer prices witnessed an increase of FCFA 75 for 75 centilitres. She questioned why FCFA 300 has been placed on the same quantities of wine.

“The implication is heavy on the economy,” she stressed, underscoring that businesspersons will not be able to pay taxes and employees if the trend continues.

Hervé Mendoua came to the Yaounde Central Market, the center of the sale of liquor to procure a carton of locally-made wine which was formerly sold at FCFA 9,000. He backed out when he observed that the price had increased to about FCFA 14,000. But the shopkeeper could not help him in anyway. "Prices have increased with a heavy toll on income", Patrick Kenmone said regrettably.

He revealed that there has been an increase of FCFA 5,000 on each carton of locally-brewed wine which is well over FCFA 1,000 increment on imported alcoholic drinks.

The demand for locally produced alcohol was high but the hike has pushed consumers to change their choices.

The price list from the General Directorate of Taxation states an additional FCFA 300 on locally produced wine of 75 centilitres, same amount for those of lesser quality and FCFA 2,000 for those considered to be of high quality.

Similarly, 75 centilitre locally produced whiskies as well as those of lower quality are expected to witness an increment of FCFA 500 while those of high quality will have FCFA 3,000 added to the usual price.

Sachet whisky which was sold at FCFA 150 will hence be sold at FCFA 250, an increase of FCFA 100. Low quality and high quality champagne is now sold at FCFA 2,000 and FCFA 4,000 respectively.