In Nigeria, rising inflation has also hit manufacturers of beverages. Skyrocketing production costs, currency volatility, and high product prices have led to lower consumer patronage, leading several beverage producers to post significant losses over the past year.
International Breweries plc has announced new price increases on some of its products. The company says the adjustment aims to improve customer experience but also blames market realities. The new pricing will affect the following products:
- Eagle Lager RB 600mlx12,
- Eagle Extra Stout RB 600mlx12,
- Trophy Stout 600ml x12,
- Beta Malt Can 330mlx24,
- Beta Malt PET 250mlx24,
- Beta Malt PET 330mlx24,
- Grand Malt CAN 330mlx24,
- Grand Malt PET 250mlx24,
- Grand Malt PET 330mlx24
Head of Sales, Olaleye Abimbola, said he is confident the decision will benefit all stakeholders in the long term. However, he directed distributors to maintain the old “pricing strategy” until June 1, 2024 when new prices will come into effect.
A statement from the company promised:
We are confident that this decision will prove beneficial to all our business partners. Similarly, we urge you to honour the same pricing strategy we had in the previous months until these changes are announced and implemented.
This will be International Breweries’ second price hike in 12 months.
The company posted a loss of N162.2 billion in its first-quarter report. The losses are linked to the Naira devaluation – a similar fate that befell several companies with high foreign debt profiles.
Tale Of Woes Hit More Coy
Nigerian Breweries plc recently announced plans to temporarily close two of its nine production centers nationwide due to similar financial and operational challenges.
The company suffered its biggest year-on-year after-tax loss in 77 Years. It said this was primarily due to a net loss of N153.3 billion from foreign exchange exposure. The company identified other factors including double-digit inflation rates and reduced consumer spending.
Consequently they’re undergoing a comprehensive restructuring and rationalization of their operations for a sustainable future.
The CEO, Hans Essaadi, admitted the current economic situation made beer unaffordable for many customers.
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