Alcohol prices to rise from Monday

Retailers like Tesco Lotus and Tops Supermarket have already seen a more than 100-per-cent surge in sales as consumers and small traders have been rushing in to stock up on beer and liquor.

Phattaraporn Phenpraphat, vice-president for marketing and public relations of Central Food Retail, the operator of Tops supermarkets, said it was currently discussing prices with four breweries. "We got invoices from them saying the new prices would be quoted on Monday," she said.

Darmp Sukontasap, senior vice president of Tesco Lotus, said: "As far as prices are concerned, we are still selling current stock at old prices. We are now in talks with our vendors and will only adjust prices when new stocks come in."

He said the government's decision on Wednesday led to a period of rush buying by consumers and small businesses, and that sales rose by more than 100 per cent compared to the same period last year. Sale of beer at Tops has doubled or even trebled over two days as consumers rushed to stock up. However, whisky and brandy sales have not shown any significant rises.

Anuchit Jureegasa, assistant vice-president for corporate communication of Thai Beverage, manufacturer of Chang Beer and other alcoholic products, said the firm has yet to increase its prices.

"We are collecting information to be used in the consideration of any price adjustments," Anuchit said.

However, he added, the company fully supported the government's decision to raise excise tax on alcoholic beverages, saying that this would help mobilise the country's financial system and finance its public investments in the future. Still, Anuchit said the price hike would burden consumers in the long term and affect company sales initially.

"Theoretically, price increase for any product at a time when consumers have less purchasing power will definitely lessen their consumption," Anuchit said, adding that beer consumption had previously experienced slower growth and has been flat for a while now.