Brewers chided for over-pricing

Ethiopia’s Trade Competition & Consumers Protection Authority has denounced the country’s brewers for over-pricing their products following the Birr devaluation. This was reported on 7 November 2017. The price of beer in rural areas started to increase after the Birr was devaluated 15 percent in early October 2017 to boost exports (eg coffee, oil seeds and flowers).

Local media say that Mikael Teklu, Director at the Authority, has sent a warning to every brewery in Ethiopia, with the exception of Dashen and Raya. Most likely these two breweries enjoy some political clout and had to be spared. The list of brewers that received the warning includes Diageo, Zebidar, Habesha, BGI (Castel) and Heineken.

“The increase is unfair. So, the companies have to readjust their prices,” Mr Teklu was quoted as saying. “The effects of the devaluation cannot be felt in such a short period.”

Here errs Mr Teklu. The devaluation was actually felt in no time by the country’s brewers as malt, hops, yeast, bottles are all imported into Ethiopia.