KUALA LUMPUR – Local bread maker Gardenia Bakeries (KL) Sdn Bhd has blamed numerous factors, including the Covid-19 pandemic, disasters, and the minimum wage, for the increase in prices of its products this coming September 1.
Gardenia said it has grappled with numerous challenges brought by the after-effects of the pandemic, such as Health Ministry standard operating procedures, flooding in Shah Alam in December last year, the global supply chain crisis, and the implementation of the minimum wage in May this year.
It said the costs of high protein flour had increased by 25%, and egg white powder has more than doubled alongside wholemeal flour, gluten, skimmed milk, bread improver, and packaging materials, among others.
“This is beyond our control, and combined with the mandatory increase in the minimum wage, has severely impacted Gardenia KL operations,” it said in a press statement.
The company noted that the marginal price adjustment of Gardenia Original Classic white bread is RM0.20, or 7%, while the increase in high protein flour price is 25%.
However, Gardenia said it is maintaining the price of its Gardenia Bonanza Keluarga bread at RM2.75, a more affordable 500g white loaf, which is suitable for larger families.
“Increasing the price of our products is always the absolute last resort when all other efforts have been taken to maximise the efficiency of our operations,” it said.
“We remain committed to our consumers and to supply fresh bread 365 days a year, seven days a week, rain or shine, and thank all our loyal consumers for their longstanding support and understanding.”
The latest price hike marks the second increase in less than a year, following a similar move in December 2021.
The latest revision will see the price of Gardenia Original Classic bread raised by 20 sen to RM3, while the Gardenia Original Classic jumbo bread will cost 30 sen more at RM4.30.
After September 1, customers will also pay RM4.00 for a loaf of Gardenia Wholemeal, RM5.50 per loaf for the Gardenia Toast’em range, RM1.50 for Gardenia Waffles, and RM1.10 per piece for Gardenia cream rolls.
Gardenia Double Choc Muffins will cost RM2.20 per packet, while its Choc-a-Lot Twiggies will cost RM2.00 per packet.
According to a memo distributed to retailers, Gardenia has listed 53 products affected by the price hikes.
“We have done our best to maintain the previous selling price, but due to the hike in prices of raw materials such as wheat flour and vegetable fat that are constantly increasing, it is only necessary for us to revise the prices (of our products),” Gardenia Bakeries chief executive Koh Chin Huat said in the letter.
“We will always be committed to maintaining the quality of our products at an optimal level to satisfy all our customers and users.” – The Vibes, August 28, 2022
