The decision, conveyed in an internal memo dated August 1, 2023, and seen by Business Post, cited the need to review prices due to the continued rise in input costs and the necessity to mitigate its impact.
“This is to inform you that we will review the prices of some of our SKUs effective Thursday 10th August 2023,” the internal letter signed by Mr Ayo Lawal, the Sales Director, said.
“In appreciation of our great partnership and your commitment, we will deliver at current prices all open orders that are fully funded and created in our system before 00.00hr on Thursday, 10 August 2023.
“While thanking you for your commitment to our great partnership, be rest assured that we will continue to support your sales/distribution efforts as always.
“For further clarifications, please do not hesitate to contact your Regional Business Manager,” it added.
As one of Nigeria’s leading breweries, this move is likely to have a ripple effect throughout the country’s beverage market, prompting consumers to brace themselves for the reality of paying more for their favourite brews.
Not only beer like Heineken, Star, Star Radler, and Tiger will be affected. Non-alcoholic alternatives like Maltina, Amstel Malta, and Fayrouz will also be impacted.
In their half-year financial results, NB Plc reported N70.6 billion in forex losses as of June 30, 2023, and with rising production costs and the ever-increasing cost of raw materials, this has created a challenging financial environment for the brewing giant.
The overall slowdown of the Nigerian economy and currency devaluation have further impacted profitability across various industries, including brewing.
Earlier this year, the company’s Chief Executive Officer (CEO), Mr Hans Essaadi, lamented that the cash crunch in the country caused by the cashless policy of the Central Bank of Nigeria (CBN) was disastrous to its operations.
He said business had been heavily impacted by the cash crunch in the country caused by the cashless policy of the CBN, which was put on hold in mid-March.
In the March interview with Bloomberg, the Chief Executive Officer (CEO) of the 77-year-old brewery giant said the development was a “disaster.”