Nigerian Breweries Plc, a leading beverage manufacturer, has recently notified its customers in the West Zone about a price adjustment in its range of products.
In a letter dated Monday, February 12, 2024, the company stated that the price review, set to take effect from Monday, February 19, 2024, was essential to counterbalance the impact of escalating production expenses.
The statement emphasized the necessity of the price review, attributing it to the continuous rise in input costs and the need to mitigate its effects. Nigerian Breweries Plc assured customers that orders that had been fully paid for before the specified date would be honored at the existing prices. However, any orders exceeding the communicated quantity window would be subject to the revised pricing.
Expressing gratitude for the strong partnership with its customers, the company pledged to deliver products at the current prices for all open orders that were fully funded and created in the system before 00:00 a.m. on Monday, February 19, 2024. The Regional Business Manager (RBM) would communicate the exact quantity of orders allowed. Any orders surpassing this quantity would be re-invoiced at the new price as of February 19, 2024.
The adjustment in prices by the fast-moving consumer goods (FMCG) company is believed to be a response to the mounting production costs exacerbated by foreign exchange (forex) volatility. Over the past 11 months, several multinational corporations have ceased operations in Nigeria, as indicated by separate notices filed by these firms. In December 2023, Procter & Gamble, another well-known consumer goods giant, terminated its on-ground operations in the country. The company cited the challenges of conducting business in Nigeria as a dollar-denominated organization, with the macroeconomic reality being a prominent factor in its strategic decision-making. Prior to Procter & Gamble, Unilever also announced in March 2023 that it would discontinue its operations in the country, specifically in the home care and skin cleansing categories.