Nigerian Breweries Plc, the largest brewery in Nigeria, has announced an upward review of prices for some of its products starting February 19th, 2024.
In a letter to distributors and customers in the West region signed by Lekan Awosanya, Zonal Business Director for the West, the company cited “continued rising input cost” as the driver behind the latest price increases. Specific details on which products will see a price hike and by how much were not provided.
This marks the third time in the past two years that the Heineken-controlled company has increased prices for its range of beer and malt brands which include Star, Gulder, Legend, Heineken, Maltina and Amstel. Industry experts have pointed to rising costs for materials, production, transport and energy as well as higher excise duties and an inflationary environment as squeezing profit margins for brewers.
The latest round of price increases risks further impacting sales volumes which fell mid-single digits in 2023 for Nigerian Breweries in a challenging economic climate. Consumers have cut back on discretionary spending while trading down to value brands.
In the letter, the company indicated that all distributor orders fully funded and in their system before February 19th will be honored at current prices. This suggests minimal advanced notice for customers and end consumers prior to the product price increases.
Analysts will be monitoring if rivals like International Breweries Plc and Guinness Nigeria Plc follow Nigerian Breweries’ lead and announce their own price increases in the coming weeks.