Nigerian Breweries Announces Price Adjustments, Reveals Reason For Action
- Nigerian Breweries has announced a price increase some of its products
- The company said it suffered about N70 billion in forex losses due to the Forex float in Nigeria
- Nigerian Breweries produces popular brands like Gulder, Maltina, Amstel Malta, and Fayrouz, among others
Amid headwinds and economic crunch in Nigeria, Nigerian Breweries has announced a price increase on all its products, effective August 10, 2023.
In a letter, the company said the price increase became necessary because of the continued rise in input costs and the necessity to mitigate the impact.
Source: UGC
Popular brands produced by Nigerian Breweries
The company said:
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“This s to inform you that we will review the prices of some of our SKUs (Stock Keeping Units) effective Thursday, August 10, 2023. This review has become necessary because of continued rising input costs and the need to mitigate the impact.”
The company produces popular brands and beer drinks, including Star Lager, Gulder, Legend Extra Stout, and Heineken.
It also produces non-alcoholic drinks like Maltina and, Amstel Malta, Fayrouz, among other beverages, which has defined its product offering.
The company said:
“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, August 10, 2023.”
Nigerian Breweries beset by inflationary pressures
BusinessDay reports that following rising inflation, currently pegged at 22.79%, and the Forex float, which led to the naira exchanging for as high as N869 per dollar at the official market, companies like Nigerian Breweries have faced significant challenges.
In its half-year results, the company reported N70.6 billion in forex losses as of June 30, 2023. The development follows the rising cost of raw materials, creating a challenging financial environment for companies.
The company experienced a loss of N10,715 billion in the first quarter of 2023, compared to a profit of N13.61 billion in the first quarter of 2022, while International Brewery recorded a loss of N2.31 billion in the first quarter of 2023, contrasting with N0.72 billion in the Q2 of 2022.
In statement sent to Legit.ng, Nigerian Breweries said the price increase is moderate adjustment, consideration the standard of living of Nigerians.
The statement reads:
"This notification to our esteemed trade partners is in keeping with our standard business practices, and commitment to business continuity for our customers. We would like to use this opportunity, to clarify, that this is a moderate price adjustment planned on some of the SKUs of our brands, due to continued rise in input cost.
"Nigerian Breweries would like to assure all stakeholders of our unwavering commitment to excellent customer service delivery and consumer satisfaction."
Nigerian Breweries moves to buy company that makes Amarula after offer from Heineken
Legit.ng reported that Nigerian Breweries Plc is contemplating the acquisition of Distell Wines and Spirits Nigeria Limited.
Distell Nigeria is a subsidiary of Distell International Limited which is 100% owned by Heineken Beverages (Holdings).
According to NB corporate filings, it revealed that there is an offer on the ground from Heineken Beverages for Nigerian breweries to buy 80% shareholding in Distell Nigeria.
Source: Legit.ng
