Gardenia denies price hike report

MANILA, Philippines - Gardenia Bakery Philippines denied reports that they have increased the price of their loaf bread by P1.

In a chance interview at the Marriott Hotel yesterday, Gardenia president Simplicio Umali Jr. said the last time they increased their price was December 2011. Loaf bread prices for Gardenia went up by P1 last December.

“It is not true. We have not implemented any price hike this year,” Umali said.

At the same time, Umali said they have no plans of increasing their price in spite of the higher input costs like LPG and fuel costs. “Even if fuel and LPG prices are going up the price of bread will remain,” he assured.

Umali, who is also the president of the Philippine Baking Group (Philbaking), said increasing oil prices has been an issue for bakers because it affects their production and distribution.

Umali’s denial follows Philippine Association of Supermarkets Inc. (PASI) secretary general Federico Ples statement that Gardenia had increased the selling price of its bread loaf and 20-piece pan de sal by P1 to the group’s member supermarkets.

According to Umali, for a time PASI had been selling Gardenia at a discount. The only reason why there seemed to be an increase in prices is because the discount had ended and the normal selling price has replaced the bargain price.

Meanwhile, Umali said they are waiting for some movement in flour prices after the tariff on imported wheat was lifted. “We are still watching this because this may have an impact on the prices.”

Since Jan. 14, the tariff on imported wheat is already zero. Trade and Industry Secretary Gregory L. Domingo said the wheat tariff was included in the comprehensive tariff review.