The price adjustments are scheduled to come into effect from August 10, 2023, as indicated in a memo sent to customers.
The company produces a range of popular alcoholic beverages such as Star Lager, Gulder, Legend Extra Stout, Heineken, Goldberg, Life, and Star Radler. Additionally, it offers alcohol-free drinks like Maltina, Amstel Malta, Fayrouz, Climax Energy drink, and Malta Gold.
The memo did not specify which brands would be affected by the price increase.
“In appreciation of our great partnership and your commitment, we will deliver at current prices all open orders that are fully funded and created in our system before 00.00hr on Thursday 10th August, 2023,” the document reads.
“While thanking you for your commitment to our great partnership, be rest assured that we will continue to support your sales and distribution efforts as always.”
Sade Morgan, the corporate affairs director of Nigerian Breweries, emphasized that the price adjustment was a moderate one aimed at managing the rising input costs. She also reiterated the company’s commitment to excellent customer service and consumer satisfaction.
The current economic conditions in Nigeria have posed significant challenges for businesses, with the country’s inflation rate reaching 22.7 percent. Furthermore, the federal government’s decision to raise the excise duty rate on beer and stout by 87.50 percent has added additional pressure on brewers like Nigerian Breweries.
The company’s half-year revenue for the period ending June 30, 2023, showed signs of recovery, recording N277 billion. This marked a turnaround from the poor performance in the first quarter of 2023, during which it incurred a loss of N10.7 billion, with revenue declining by 10.5 percent.
Guinness Nigeria, another major beer producer, faced similar economic challenges and implemented a price increase on all its products in May. The decision was attributed to the prevailing economic realities impacting business costs.
As both Nigerian Breweries and Guinness Nigeria adjust their prices, consumers may face further financial pressure, given the ongoing economic situation in the country. However, both companies aim to maintain strong partnerships with their trade partners and continue providing quality products and services.
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