Nigerian Breweries Initiate Another Price Increase for Beer Following One In February

Nigerian Breweries has increased the price of their products for the second time in two months

In a letter dated Monday, February 12, 2024, it is stated that in order to counteract the effects of higher production costs, a price review will take effect on Monday, February 19, 2024.

Following a price increase in February, Nigerian Breweries Plc has announced another increase in the cost of its products.

The new price review will go into effect on March 15, 2024.

This was revealed by the company in a review notification that Nairametrics was able to obtain. The notification was signed by the zonal business manager and distributed to customers in the South-West zone.

The notice states that the most recent price review is based on the necessity of lessening the effects of increasing input costs.

It stated, “As earlier informed we will review the prices of some of our SKUs effective Friday 15th March 2024. This review has become necessary because of the continued rising input cost and the need to mitigate the impact.

“All open orders in our system at 00.00hrs on Friday 15th of March, 2024 will be invoiced at the new prices.”

The company promised its distributors that it would continue to assist them with their marketing and distribution initiatives.

MON DIARIES first reported on the Nigerian Breweries price increase earlier in February, which was justified by the company's need to protect itself from growing production costs. It was the third upward price review in a year, according to the report at the time.

Businesses in the manufacturing and fast-moving consumer goods (FMCG) sectors have seen significant input cost increases in the last 12 months compared to the depreciation of the naira, primarily due to the rising cost of imported raw materials.

The challenges Nigerian Breweries are facing are a part of a larger pattern. Nigeria's difficult macroeconomic circumstances in 2023 had a significant negative influence on the operation of home and foreign manufacturing companies there. As a result, by year's end, there were significant exits and closures.

The CEO, Hans Essaadi, acknowledged during the 2023 results presentation that Goldberg has been severely impacted by inflation, saying that customers can no longer afford the brand. He also mentioned that the company will face difficulties in 2024 due to pressure on consumer spending, rising input costs, and inflation.

The company's FX losses, which totaled N153 billion, were the primary cause of its N106 billion net loss for the year that ended in December 2023.