International Breweries has announced that it has effected price hikes across its various product offerings in Nigeria.
The company said in a statement that the price review was done to serve its customers better.
According to the brewer, reviewing prices in its portfolio has become necessary due to current market realities.
The new price review affects products such as Eagle Lager, Eagle Extra Stout, Trophy Stout, Beta Malt, and Grand Malt.
The company’s head of sales, Olaleye Abimbola, disclosed that it is confident that the decision to review the prices benefits all its partners.
Reports say that Abimbola asked its partners to honour the old pricing strategy it had in the previous months until the new changes were announced and implemented.
This is the second time the company will hike the prices of its products in one year.
Major brewers in Nigeria have been hit by an economic crisis due to inflation, foreign exchange volatility, and rising production costs, which has led to price hikes across the country.
International Breweries disclosed a forex-related loss of N162.2 billion in its first quarter report.
Recently, Nigerian Breweries announced intentions to close two of its nine breweries nationwide temporarily.
This update came through a notification posted on the Nigerian Exchange Limited’s website.
The beer company stated that this decision is a component of a comprehensive restructuring of its operations, prompted by various financial and operational challenges.
Reports say that Nigerian Breweries experienced the largest after-tax loss in its 77-year history in the country, mainly due to a net loss of N153.3 billion from foreign exchange transactions.
The brewer stated that the losses were attributable to double-digit inflation rates, naira devaluation, FX challenges, and diminished consumer spending.
Consequently, the company deems it imperative to reposition itself for a sustainable future that benefits stakeholders, necessitating tough decisions.
TimesNow.com.ng previously reported that Hans Essaadi, the chief executive officer of Nigerian Breweries Plc, has revealed that Nigerians can no longer afford to buy beer due to the economic situation.
Essaadi stated this at the company’s investor call following the release of its 2023 results on Monday, February 19, 2024.
According to Bloomberg, he noted that the previous year (2023) was challenging for the company in terms of sales.
Source: TimesNow.com.ng
