GEORGE TOWN – Following the reported decision by local bread producer Gardenia Bakeries to increase the prices of most of its products, a consumer group has called on the people to stage a boycott.
Federation of Malaysian Consumers Associations (Fomca) vice-president Datuk K. Koris Atan said it is merciless for food manufacturers to raise their product prices as people struggle to recover from the adverse effects of the Covid-19 pandemic and lockdowns.
“Don’t fall prey to brand names, as (some) consumers are influenced by the corporate world to buy branded items for self-glory and to boast about them.
“Buy local food items, buy bread from local bakeries or from the ‘roti men’ who go around residential areas daily to sell their items,” he told The Vibes when asked to comment on the price hike of Gardenia products.
Gardenia, in a purported letter addressed to its retailers, said the price increase of its various bread and bakery products will take effect from December 1.
According to the company, the increase is due to a hike in the cost of raw materials and freight charges.
The new pricing for consumers reportedly includes RM2.80 for a loaf of Gardenia Original Classic 400g, up from RM2.50. The Gardenia Original Classic Jumbo 600g will cost RM4, up from RM3.55, while a 400g loaf of Gardenia Bran & WheatGerm that is currently priced at RM2.50 will be increased to RM2.90.
Among the other new prices are RM3.70 for Gardenia Fluffy Buns, and RM1.30 for Gardenia Puazz buns.
Koris advised consumers to avoid food outlets and restaurants that charge exorbitant prices as well.
In Kota Kinabalu, Kim Teck Cheong Consolidated Bhd (KTC) executive director Datuk Dexter Lau said the company holding the rights to the Gardenia brand in Sabah and Sarawak do not plan to increase the prices of all its bread products in the region.
“Despite such challenges, we still maintain Uncle Slocum’s recipe in our manufacturing.
“We are also trying our best to cushion the impact and avoid passing on higher costs to consumers, unless we really have to.
“We already have a price disparity between East Malaysia and Peninsular Malaysia. In East Malaysia, the volume is not as large as Peninsular Malaysia, and the transport charges are much higher in the region.”
Lau said East Malaysian consumers are already paying 30% more than Peninsular Malaysia. Hence, any price hike at this point of time would not be a smart move.
He referred to geographical challenges such as long distances that also affect pricing, while the issue is compounded by the fact that raw materials are higher in East Malaysia.
KTC became the sole operator of Gardenia Bakeries (East Malaysia) Sdn Bhd on January 22 last year. – The Vibes, November 25, 2021
Additional reporting by Jason Santos
