Over 10% immediate price reduction in confectionery items

Wednesday, 21 September 2022 00:23 - - {{hitsCtrl.values.hits}}

Prices drop from Rs. 70 to Rs. 10 depending on package size
Biscuit manufacturers introduce ‘affordable-size packs’ to address all consumer segments

Lanka Confectionery Manufacturers Association (LCMA) has announced an over 10% immediate price reduction to pass on the benefits of reduced key raw material costs to the consumers. The prices will drop between Rs. 70 to Rs. 10 or 10% to 12% across all confectionery categories depending on the size of the packages.

The move came following the refined sugar and vegetable oil used in confectionery production dropping by Ra. 40 per kilo and Rs. 250 per kilo respectively.

“Members unanimously agreed to reduce all-inclusive prices of confectionery items across every product category immediately to pass on the price benefit to the consumers who are heavily battered by the ongoing economic crisis,” LCMA President S.M.D. Suriyakumar said.

He also confirmed that new prices have already been adjusted via its vast distribution network.

In addition, LCMA members manufacturing biscuits have decided to introduce ‘affordable-sized packs’ to cater to all consumer segments.

“The consumers will see new and affordable sized biscuit packs within this week. These are not ‘cheap’, but affordable products. This is to ensure, product accessibility. We do not want to leave behind any consumer segment because of their purchasing power capacities,” he explained.

In June, the $ 150-200 million worth local confectionery industry came under harsh criticism after they jacked up prices by an average of 200% across the board. The Daily FT learns that this move backfired on the industry’s sales and profitability.

However, the industry last month justified the move, citing it was critical for the sustainability of their businesses. LCMA said the companies would have survived better or at least breakeven, had there been no shortage of raw material and stable fuel supply along with a proper policy to encourage exporters effectively.

“There are around 30 local manufacturers in our association. We have never acted unfairly to our consumers,” Suriyakumara said.

At present, the products of the member companies of LCMA are exported to over 50 countries, whilst 150,000 retail stores across the country generate around 25% to 30% of the income generated by selling confectioneries. The confectionery manufacturing companies also pay a huge amount of taxes to the Government annually.