More Problems For Beer Lovers As Nigerian Breweries Again Hikes Price Of Products

Nigerian Breweries Plc has announced a second price increase for its products, effective March 15, 2024, marking the fourth hike within a year. This decision reflects the company’s efforts to address the escalating input costs it faces, which have been exacerbated by the depreciation of the Nigerian currency and the resultant increase in expenses for imported raw materials.

The economic landscape in Nigeria during 2023 presented significant challenges for both domestic and international manufacturing firms, including Nigerian Breweries. The persistent depreciation of the naira and the corresponding rise in costs for imported raw materials have put immense pressure on companies’ bottom lines, leading to notable departures and closures within the manufacturing and Fast-Moving Consumer Goods (FMCG) sectors by the end of the year.

Inflation has also played a crucial role in diminishing consumer purchasing power, resulting in decreased demand for certain products, including those offered by Nigerian Breweries. This challenging environment has necessitated strategic adjustments to pricing to ensure the company’s sustainability and ability to continue serving its customers.

During the presentation of the 2023 results, CEO Hans Essaadi highlighted the difficulties faced by consumers in affording products like Goldberg. He pointed to inflation, rising input costs, and pressured consumer spending as ongoing challenges for the company in 2024. Despite these challenges, Nigerian Breweries remains committed to providing high-quality products to its customers.

Despite reporting a substantial net loss of N106 billion for the fiscal year ending December 2023, primarily attributed to foreign exchange (FX) losses amounting to N153 billion, Nigerian Breweries has reaffirmed its commitment to supporting its distributors’ sales and distribution efforts. The company recognizes the importance of maintaining strong relationships with its distribution network, particularly during challenging times, to ensure its products remain accessible to consumers across Nigeria.

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