Business News

High input costs bite as International Breweries set to raise product prices 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 Naijaonpoint, 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;  

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.”  

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.