Nigerian Breweries Plc has issued a new price review notification to all its customers in the West Zone.
The affected company’s brands include Star Lager, Gulder Lager, Legend Extra Stout, Heineken Lager, Climax, Goldberg Lager, Life Continental Lager, Ace Passion, Star Lite and Star Radler, 33 Export Lager, Williams Dark Ale, Turbo Kings Dark Ale, More Lager, Star Radler Red Fruits, and Desperados, which is a premium beer brand with a distinctive tequila flavour.
According to a letter dated Monday, February 12, 2024, the price review, effective Monday, February 19, 2024, is deemed necessary to offset the impact of increased production expenses.
“This is to inform you that we are constrained to review the prices of some of our SKUs with effect from Monday, February 19, 2024.
“This review has become necessary because of continued rising input costs and the need to mitigate the impact,” the statement indicated.
The company assured customers that those who had fully paid for orders before the specified date would be honoured at the existing prices.
However, orders exceeding the communicated quantity window will be subject to the revised pricing.
“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 00.00 hrs on Monday, February 19, 2024.
“The exact quantity of orders that will be allowed will be communicated to you by your Regional Business Manager (RBM). Any order in excess of this quantity will be re-invoiced at the new price on February 19, 2024,” the statement added.
The price adjustment by the Fast-moving consumer goods (FMCG) company is believed to have been a result of the rising cost of production, worsened by forex volatility.
In the last 11 months, at least five multinationals have shut down operations in Nigeria, an analysis of separate notices filed by the firms has shown.
In December 2023, another consumer goods giant, Procter & Gamble, dissolved on-ground operations in the country.
The company explained that it was difficult to do business in Nigeria as a dollar-denominated organisation, and the macroeconomic reality in Nigeria is responsible for its latest strategic decision.
Before P&G, Unilever also announced in March 2023 that it would fold up operations in the country.
According to the multinational, the changes in its business meant it had to exit its home care and skin cleansing categories from Nigeria.
