6 March 2008
Maputo — The price of Mozambican beer rose by an average of 12.2 per cent as from Wednesday, a rise which the breweries blamed on sharp increases in the cost imported raw materials.
There are two breweries in Mozambique, one in Maputo and in Beira, and both are owned by Cervejas de Mocambique (CDM - Beers of Mozambique), which is the local subsidiary of South African Breweries.
CDM has a stranglehold on the Mozambican beer market. It seized a complete monopoly when its sole competitor, Laurentina, went mysteriously bankrupt in April 2002. CDM took over the Laurentina brands, transferred the Laurentina equipment to its own factory, and paid off all the Laurentina debts - a small investment for total control of the Mozambican market.
CDM spokesmen claim the price rise was inevitable due to a 44 per cent rise in the price of malt, a 400 per cent rise in the price of hops, and a 70 per cent rise in the price of packaging, all of which are imported. The company claimed that, due to increased efficiency, it had been able to absorb much of the increased costs, thus keeping the price rise down to around 12 per cent.
The 550 millilitre bottles of the 2M and Laurentina brands see their price rise from 22.5 to 25 meticais (an 11.1 per cent increase), but for beer sold in barrels, the price rise is a hefty 20 per cent. A small glass of beer drawn from a barrel rises in price from 10 to 12 meticais. (At current exchange rates, there are about 24.1 meticais to the US dollar).
CDM says it will not put up the price of its Raiz brand, only available in 550 millilitre bottles. The company claims this brand is very popular, but in reality it is not available in most central Maputo bars, shops and restaurants.
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