SOFT DRINK COSTS SOAR

Press, Volume CXIV, Issue 33520, 29 April 1974, Page 14

SOFT DRINK COSTS SOAR

Costs were still rising alarmingly in the soft drink industry and would have to be passed on in the form of higher prices, an industry spokesman said in Christchurch last evening.

Speaking at the opening of the annual conference of the Soft Drink, and Cordial Manufacturers’ Association, the president, Mr M. A. Lewis, said the industry had long ago lost any capacity to absorb big cost increases.

He gave a warning that manufacturers could expect big increases in the cost of imported raw materials for soft drinks, and continuing shortages. “The industry has still not yet felt the full effect of the increases in the cost of petrol and oil and the consequent rise in freight charges,” he said.

Citric acid, caustic soda, tinplate and other materials were expected to be in short supply. “Bottle prices also go up with motononous regularity and we have been notified of

a further increase in the last week.”

He said that although the price of sugar had been stabilised, the industry was well aware of soaring world prices.

Mr Lewis told the conference that although the industry must continue to press for the removal of price control it must in the meantime learn to live with it.