Manufacture reveals how fuel Price surge is actively squeezing profit margins for Uganda’s Luxury Products.

Luxury industry experts have revealed that whereas the effect of fuel price hikes on the luxury industry hasn’t been particularly well documented, luxury brand producers and experts within that consumer bracket have told this website that they are feeling the strain, and for now, absorbing additional costs leading the producers to rethink of unfortunate alternatives such as laying off workers, stopping supplies and others.

The consumable luxury producers such as wines, juices, among others further say that the price increases has reached a point where they can’t shift the burden to consumers, who are already tightening their wallets.

The Proprietor of K-Roma Limited, Prudence Ukkonika, the producers of Bella wines during an interview with Jori Press said that the fuel price increases are forcing luxury producers to navigate a delicate balance between absorbing higher manufacturing, distribution costs and maintaining the prestige associated with their brand.

“We produce Bella Wine and other juice. The best in the whole world. We have been affected by this fuel increase. Once the fuel go high everything goes up” she said

She says that while other necessities of high affluent to consumers remain somewhat resilient to the fuel economic sock, soaring logistics and supply chain costs are actively squeezing the luxury industry profit margins.

“Unfortunately, we are dealing in products which are luxurious, we are not going to increase the prices, because fuel prices are up. So it’s really confusing us whether we should close the business or we continue operating in losses until the business dies by itself” she decried the high cost fuel.

Prudence Nkkonika in office at Kira 

Industry players have revealed that their brands are affected in various other ways including; Luxury consumption decline, low material value chain supplies which she says affects directly the famers who supply them with the fruits for their wines and juices.

“Our farmers are also being affected because once production is not going on, they can’t supply. Bella wine is from different fruits, such as passion fruits, pine apple, mangoes, grapes, this is helping farmers. Something should be done. We also have hibiscus, we produce juice from them” she said

To blunt the impact of high fuel prices, she said that she is restructuring distribution channels through reducing distributing fleets to one vehicle to supply to the nearby towns, which she said can’t support the administration costs of all the staff members.

“I used to send fleets to supply in the west, the east, the north, but now am remaining with one vehicle supplying the central part of Uganda. We pray very hard that things will be settled soon, if they don’t we shall force to lay off our workers, which is very unfortunate” she said

K-Roma Limited is a Producer and Distributor of Bella wine, the largest organic wine in Uganda located at Namanve Industrial park and Plot 7264, Block 185 Mulawa Kira, Wakiso Uganda.