Bread Prices Drop Again
Bread makers such as Festive Bread, Super Loaf, Broadways as well as Selecta have been losing a price battle with in-house bakers within the major retail stores.
For only the second time, bakers have been forced to slash prices of bread by Ksh5 after competition intensified on their end, bringing relief to Kenyans undergoing tough economic times.
Spot checks by Viral Tea across small and medium scale shops in estates as well as major supermarkets have revealed that bread makers such as Festive Bread, Super Loaf, Broadways as well as Selecta have been losing a price battle with in-house bakers within the major retail stores.
The price of the bread within in-house bakeries has been cheaper by Ksh5 since the month of April when bakers increased the prices of their products to cater for the added cost of wheat and ingredients such as cooking oil.
A supermarket along Thika Road. /MARVINCHEGE.VIRALTEAKE
It is observed that a 400-gram of Selecta bread now goes for Ksh50 down from Ksh55, a matter which has also applied to the likes of Superloaf, Festive or Broadways bread.
The 600-gram loaf of bread sells at Ksh65 on average down from Ksh70. Multiple 800 grams variants of bread brands have reportedly dropped by over Ksh 5 shillings, below the Ksh100 mark.
In a span of two months, external bakers have been shifting the prices of bread to maintain the loyalty of their customers as well as cater for production costs.
It is the second time they have been forced to cut down the price of their products since January 2021 to keep that loyalty, which was in danger of slipping away as consumers turned to in-house brands.
In January, one tonne of wheat shot up by 30 percent in price from Ksh25,300 to an all-time high of Ksh30,000. Consequently, prices for both bakery and flour supplies experienced an increase.
As a result, the cost of bread in Kenya went up for the first time in four years, significantly disrupting household budgets. At the time milk prices endured an upward shift as well.
Since April, none of the in-house bakeries have had to adjust their prices in any form. However, the increase in profits on their end was attributed to their rivals reviewing their prices upwards.
Shopkeepers within the city confirmed to Viral Tea that customers had settled for less popular bread and left the famous brands idling on the shelves. This had forced the retailers to reduce purchases of famous brands as its demand had dropped.
"The market has forced bakers to reduce the price as customers opted for cheaper bread as an alternative," Bimal Shah, managing director of Broadway Group of Companies told Business Daily on Tuesday, February 2.
The increased cost was as a result of rising wheat prices globally, with bakers passing the additional cost in price of wheat to consumers. Kenya depends on the local market for up to 75 percent of her total wheat requirements.
Slices of bread. /FILE