Companies
Inflation: International Breweries to increase price of Trophy, Malt on June 1
Nigerian brewer, International Breweries, has announced price reviews of its Trophy, malt and lager products beginning from the 1st of June, 2024.
This was disclosed in a notification by the company’s Head of Sales in the Eastern region, Olaleye Abimbola, to its business partners and distributors.
According to the notification seen by Nairametrics, the price review was carried out to fit product prices into current market realities.
It stated, “This is to notify you, our valued business partner that we are reviewing the prices in our portfolio due to current market realities, as we work to enhance our pricing models to ensure you are best served by us.”
“To this end, the review in the prices of our current selected SKUs will take effect from the 1st of June, 2024.”
However, industry experts said the foreign exchange crunch has raised the cost of major inputs by over 100% in the last 12 months.
The company further listed the affected products in its price review including;
- Eagle Lager RB 600mlx12,
- Eagle Extra Stout RB 600mlx12,
- Trophy Stout 600ml x12,
- Beta Malt Can 330mlx24,
- Beta Malt PET 250mlx24,
- Beta Malt PET 330mlx24,
- Grand Malt CAN 330mlx24,
- Grand Malt PET 250mlx24,
- Grand Malt PET 330mlx24
Also, it noted that the decision will prove beneficial to customers and business partners.
It stated, “We are confident that this decision will prove beneficial to all our business partners. Similarly, we urge you to honour the same pricing strategy we had in the previous months until these changes are announced and implemented.”
What you should know
The price increase by multinational FMCG companies in the past year in Nigeria is not new. Over the past 12 months, companies in the manufacturing and FMCG sectors have experienced significant increases in input costs due to the depreciation of the naira, making imported raw materials more expensive.
- The challenges faced by International Breweries reflect a broader trend. In 2023, Nigeria’s difficult macroeconomic conditions severely affected the operations of both domestic and international manufacturing firms in the country, leading to notable departures and shutdowns by the end of the year.
- In April, Nigeria’s inflation shot up to 33.69%– a 28-year high – coupled with the naira which has depreciated to around N1,500/$.
- In 2024 so far, International Breweries’ peer, Nigerian Breweries, announced price increases twice. In February 2024, the company notified its partners of increases in the prices of its products. This was followed by another price increase in March which the company attributed to rising input costs.
- Also, Guinness and other consumer goods companies have announced similar price increases.
