Nigerian Breweries Announces Hike In Price Of Beers Over Economic Challenges

Nigerian Breweries (NB PLC) has made an announcement of a forthcoming price increase on all their beer products.

According to a letter obtained by Nairametrics, dated 1st August 2023, the company announced that a price increase on all their products would take effect on August 10, 2023,

NB PLC explained that the price adjustment has become necessary due to the significant rise in input costs. It also emphasized the need to mitigate the impact of these cost increases.

The letter partly reads, “This is to inform you that we will review the prices of some of our SKUs effective Thursday 10th August 2023.”

The decision to raise prices is reportedly driven by various challenges faced by the Fast-Moving Consumer Goods (FMCG) industry. These challenges have likely put significant pressure on the company’s operational costs, prompting the need for price adjustments.

With inflation reaching 22.79% in June and the managed float of the forex market leading to the naira exchanging for as high as N869/$ at the I&E window last week Thursday, companies like NB PLC have faced significant challenges.

In their half-year financial results, NB PLC reported N70.6 billion in forex losses as of June 30, 2023, as they face rising production costs and the ever-increasing cost of raw materials.

The increased prices may lead some customers to reduce their beer consumption or explore more affordable alternatives to cope with the changes in pricing.

KanyiDaily had reported that members of the Nigeria Labour Congress (NLC) began nationwide protests today over the removal of fuel subsidy and the subsequent hike in petrol prices, among other grievances.