Nigerian Breweries has announced a price rise on all of their goods beginning on August 10, 2023, which is expected to have an impact on beer drinkers across the country.
Nairametrics reported that this was revealed in a letter that stated that pricing needed to be reviewed in light of the ongoing increase in input costs and the need to lessen its effects.
“This is to let you know that, starting on Thursday, August 10, 2023, we’ll be reviewing the prices of certain of our SKUs.”
This decision by one of Nigeria’s top breweries is likely to have repercussions on the nation’s beverage market, driving customers to brace themselves for the reality of paying more for their favourite brews.
Companies like NB PLC have encountered considerable difficulties as a result of the inflation rate reaching 22.79% in June and the managed float of the foreign exchange market that caused the naira to exchange for as much as N869/$ at the I&E window last Thursday.
As of June 30, 2023, NB PLC reported N70.6 billion in forex losses in their half-year financial reports. This has put the world’s largest brewery in a difficult financial situation due to increased production costs and continuously rising raw material prices.
Competitors closely monitor Nigerian Breweries’ actions as the dominant player in the country’s brewing sector because they could establish a precedent for price changes in the industry.
On August 10, 2023, the price hike is scheduled to go into force, and customers will undoubtedly notice it while buying their favourite beverages.
Customers might feel pressured to reduce their beer consumption or look for more cheap alternatives as a result of the difficult economic conditions and stretched disposable incomes they are already facing.
Additionally, according to insider sources, the brewing giant lost 540 employees between January and July of this year due to factors including voluntary early retirement, redundancies, and the famous “Japa syndrome.”
Customers must get ready for an increased cost while buying beer as Nigerian Breweries get ready to implement the price rise.
The choice is a reflection of the economy’s persistent difficulties, which are characterized by rising prices and inflationary pressures.
To ease concerns and foster understanding, effective communication from Nigerian Breweries will be crucial.
As the beverage industry navigates through these turbulent times, all eyes will be on how the market reacts to this move.
Competitors may follow suit, and innovative pricing strategies may emerge. In the meantime, consumers will have to adjust their beverage budgets, raising a glass to toast in a costlier era of their favourite brews.
