For the second time in two months, brewery giant, Nigerian Breweries Plc announced another increase in the price of its products after the earlier increase in February.
The new price review will take effect from the 15th of March 2024.
This was disclosed in a review notification sent to customers around the South-West zone signed by its zonal business manager.
According to the notice, the latest price review is premised on the need to mitigate the impact of rising 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 assured its distributors of its continued support of their sales and distribution efforts.
Nigerian Breweries had effected a product price hike premised on rising production costs and the need to insulate the company against it. According to the report then, it was the third upward price review in a year.
Companies in the manufacturing and FMCG space in the past 12 months have seen significant increases in the input cost over the depreciation of the naira as imported raw materials become more expensive.
The difficulties faced by Nigerian Breweries are part of a broader trend. In 2023, Nigeria’s challenging macroeconomic conditions severely impacted the functioning of manufacturing firms, both domestic and international, within the country. This led to notable departures and shutdowns by the year’s end.
Also, inflation has significantly affected patronage as confirmed by the CEO, Hans Essaadi during the result presentation for 2023 where he stated that consumers are no longer able to afford Goldberg.
He also acknowledged inflation, rising input costs and pressured consumer spending as challenges the company will confront in 2024.
For the year ending December 2023, the company recorded a net loss of N106 billion mainly from its FX losses amounting to N153 billion.
