Full List: Guinness Announces Price Increase for Malts, Stouts, Other Products
- Guinness Nigeria is set to implement new prices across significant product lines, according to a recent announcement
- It stated that this became necessary following the continued rising output witnessed in the country
- It stated that products under the mainstream spirit and the beer category will be affected by the development
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Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
Guinness Nigeria Plc has announced that it is implementing new prices across significant product lines.
Source: Getty Images
This followed a similar announcement by Nigerian Breweries Plc to effect another increase in the price of its products in an announcement by the company to customers.
It explained that the upward review became necessary considering the continued rising output witnessed in the country.
The Guardian reported that International Breweries also said prices were increasing to reflect current realities.
New price to be implemented
Olusanya Adesanya, the acting commercial director for Guinness Nigeria, fault the prevailing economic realities for the implemented increase.
According to him, this has significantly impacted the costs of production materials and the cost of doing business.
He, however, added that the increase, which takes effect immediately, applies to some selected SKUs in their beer and MSS categories.
Under the beer category, the affected drinks include:
- Stouts (Guinness and Guinness Smooth),
- Malts (Malta Guinness and Dubic Malt)
- Ready-to-drink spirits (Smirnoff Ice and Orijin)
Under the mainstream spirits, drinks affected are;
- Origin Bitters and Herbal Gin
- Gordon's Pink Berry
- Sunset Orange and Moringa Citrus
- Smirnoff X1 Smooth
- Choco and Captain Morgan
In a memo similar to that of distributors, bulk-breakers, and retailers, the district manager for the west, ABInBev Hans Darfour, said the company is forced to increase prices due to escalating operations costs.
In a price check of some of the affected products, a small stout that retailed for about N500 now goes for between N800-N900, an 80% increase.
Big Stout retails for N1,000 from N700, a 43% increase, while Castle Lite retails for N800 from N500, a 60% increase.
Trophy shows a 40% increase, moving to N700 from N500, while Gulder retails for N1,000 from N600, a 67% increase. A Malta Guinness can that retails for N300 now goes for N400, a 34% increase.
The increase is coming on the heels of industry experts' warning that manufacturers were labouring under the burden of escalating production costs, the rising cost of raw materials, high transport and rising energy costs, amongst other issues, which are profit margins for brewers.
NB CEO speaks after release of new price list
Legit.ng also reported that Hans Essaadi, the chief executive officer of Nigerian Breweries Plc, revealed that Nigerians can no longer afford to buy beer due to the economic situation.
Essaadi stated this at the company's investor call following the release of its 2023 results on Monday, February 19, 2024.
According to Bloomberg, the previous year (2023) was challenging for the company in terms of sales.
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Source: Legit.ng
