Nigerian Breweries PLC, the West African nation’s largest brewer, announced another price increase on Tuesday, citing economic headwinds and rising production costs.
The company, a subsidiary of Heineken NV, informed its customers in the West Zone of the price adjustments in a letter dated February 12th. The changes will take effect February 19th.
“This is necessary to offset the impact of increased production expenses,” the statement said. The company cited the 28.92% inflation rate recorded in December 2023 and the depreciation of the Nigerian Naira as key factors.
This marks the third price increase by Nigerian Breweries in the past year. In August 2023, the company implemented a significant price hike on select products. Despite these measures, the company still reported a substantial loss before tax in Q3 of 2023, amounting to N10.319 billion.
However, the company managed to achieve single-digit revenue growth in 2023, largely due to previous pricing initiatives. Analysts warn that the latest price increase could lead consumers to seek more budget-friendly alternatives, potentially impacting beer consumption in the region.
