Nigerian Breweries Set for Second Price Increase in 27 Days

Dike Onwuamaeze

Nigerian Breweries Plc has notified its distributor that it would increase prices of its products on March 15, 2024.

The latest notice, which was issued on March 8, would be the second time it would increase its prices within 27 days, having done so on February 19, 2024. It had also increased its prices in August 2023.

The latest move by the company to increase the price of its product was contained in a letter titled, “Price Review Notification,” which was addressed to “all direct customers – West Zone of the Nigerian Breweries Plc.”

It stated: “As earlier informed, we will review the prices of some of our SKUs effective Friday, March 15, 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, March 15, 2024 will be invoiced at the new prices”

The notification, which was signed for the NB by Zonal Business Manager – West, ’Lekan Awosanya, added that, “while thanking you for your commitment to our great partnership, be rest assured that we will continue to support your sales/distribution efforts as always.

“For further clarification, please do not hesitate to contact your regional business manager. Happy selling!”

The brewery had issued a similar “Price Review Notification” to all its direct customers in the west zone on February 12, 2024, for an impending price adjustment that would commence on   February 19, 2024. 

The notification then stated: “Please accept our best compliments! This is to inform you that we are constrained to review the prices of some of our SKUs with effect from Monday, February 19, 2024. This review has become necessary because of continued rising input cost and the need to mitigate the impact.

“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 00.00hrs on Monday 19th February 2024.”

It, however, explained that orders exceeding the communicated quantity window will be subject to the revised pricing.

“The exact quantity of orders that will be allowed will be communicated to you by your regional business manager (RBM). Any order in excess of this quantity will be re-invoiced at the new price on February 19, 2024,” the statement added.

Earlier in August 2023, the Nigerian Breweries also carried out price hike on its selected products, which took effect from August 10, 2023.

Nigerian Breweries had recorded net loss of N106 billion in its audited result for 2023, owing to the steep depreciation of the Naira.

It, however, recorded an operating profit of N44.5 billion.

Highlights of its 2023 report included increase in revenue by 9.0 per cent while its cost of sales increased by15 per cent.

The Managing Director/CEO, Nigerian Breweries Plc, Mr. Hans Essaadi had said: “The business performance of 2023 reflects the challenging economic environment in Nigeria. These severe economic conditions include persistent cash scarcity, removal of fuel subsidies resulting in a notable surge in energy cost, Naira’s devaluation, foreign exchange scarcity, and continued challenged consumer spending in the midst of high inflation.”

The President of the Manufacturers Association of Nigeria, Mr. Francis Meshioye, earlier in the year had predicted that the escalating input costs would constrain manufacturers to resort to price increases.

Meshioye had said: “The demand will become low, and this will affect our bottom line. But businesses should ensure that they break even at this time. It is a critical and very challenging time for us.”