Immediately following PepsiCo's price increases in Saudi Arabia, Coca-Cola Bottling has done the same, raising its soft drink prices by 50% in Saudi Arabia. The pre-sales manager of Coke Bottling in Riyadh said: "We have raised our prices because we can no longer afford to shoulder the increasing costs of ingredients and raw materials." He added: "The prices of ingredients, including sugar and packaging materials such as plastic and glass have risen over the past year." Pre-sales manager Kobe said that if the market leader (PepsiCo) raises its prices, the most important competitor has to follow. There is a possibility that the Ministry of Commerce may ask the companies to return to lower prices as it had already expressed its desire for soft drink makers to stop hiking prices.
