Gardenia raising prices due to new minimum wage, floods, supply issues

 

The implementation of the RM1,500 minimum wage, massive floods that hit Shah Alam last year and global supply chain disruptions were among the reasons Gardenia Bakeries (KL) Sdn Bhd had to raise its prices beginning Sept 1.

In a statement yesterday, the bakery said these challenges had severely impacted its operating cost.

This is the company's second price hike in ten months, following the previous hike last December, where prices were increased between 10 sen to 45 sen.

This time around, the price of Gardenia Original Classic 400g will go up 20 sen to RM3 per loaf, Gardenia Original Classic Jumbo 600g will cost 30 sen more to RM4.30, and Gardenia Breakthru Whole Wheat bread 400g will increase to RM4 from RM3.60.

The price of their Gardenia rolls will increase between 10 sen and RM1.10 each.

Yesterday, Gardenia chief executive officer Koh Chin Huat reportedly confirmed the price hike would begin Sept 1 after a revised price list of 53 Gardenia products went viral on social media last weekend.

Gardenia said the company always strives to increase productivity and efficiency as well as reasonable prices for all products.

"Like other businesses, we also faced a post-Covid-19 challenge, such as the safety compliance as stipulated in the standard operating procedures (SOP) of the health ministry.

"Gardenia was hit by a price hike of ingredients such as high protein flour (by 25 percent), egg white powder (over 100 percent), wheat flour, gluten, skimmed milk, bread improver and packaging materials, among others.

"Apart from factors beyond (our) control, the implementation of the minimum wage that employers must comply with as well as the massive flood that hit Shah Alam in December 2021, had an impact on our operating cost," it said.

Gardenia added that it was maintaining the price of Gardenia Bonanza Keluarga bread at RM2.75 per loaf, an affordable price for 500g white bread loaf, which is economical and suitable for larger families.

"Per 100g comparison, the Gardenia Bonanza Keluarga bread (RM0.55) is cheaper than Gardenia Original Classic (RM0.75)," it said.

Gardenia said price hikes are always the final resort after every effort has been taken to maximise its operational efficiency.

"We remain committed to all our customers to supply fresh bread 365 days a year, seven days a week, rain or heat," it said. - Mkini