Nigerian Breweries announces price hike, cites soaring production costs

Iben Ejikeme Business 14/02/2024

Estimated reading time: 2 minutes

Nigerian Breweries Plc, the country’s dominant brewing giant, is raising prices for select products, effective February 19th. Citing “continued rising input costs,” the company issued a price review notification to its West Zone customers, acknowledging the pressure on its bottom line.

“This is to inform you that we are constrained to review the prices of some of our SKUs with effect from Monday, February 19, 2024.

“This review has become necessary because of continued rising input cost and the need to mitigate the impact,” the statement indicated.

This move comes amidst broader economic struggles in Nigeria. Inflation recently hit a record high of 28.9%, fueled by factors like the removal of fuel subsidies and rising global commodity prices. These pressures are impacting businesses across the board, with Nigerian Breweries the latest to adjust its pricing strategy.

While the specific products affected by the price hike remain undisclosed, the company’s statement highlights the significant challenge posed by rising input costs. These costs may include barley, hops, packaging materials, and even energy for powering breweries. By raising prices, Nigerian Breweries aims to mitigate the impact on its profitability and ensure long-term sustainability.

However, the price hike is likely to raise concerns among consumers. Beer remains a popular social beverage in Nigeria, and any increase in cost could impact purchasing habits. Whether Nigerian Breweries can successfully balance its financial needs with consumer affordability remains to be seen.

This announcement underscores the broader economic challenges facing Nigeria and its businesses. With inflation expected to persist in the near future, companies across various sectors may be forced to make similar adjustments, potentially impacting consumer spending and overall economic activity.