SPECIAL REPORT: Mixed Reactions Trail Nigerian Breweries’ Decision To Hike Product Prices

The latest decision by the Nigerian Breweries Plc. to increase the prices of its selected products has triggered mixed reactions from some of its retailers and consumers.

The largest brewing company in Nigeria had notified its distributors recently of its move to hike the prices of products in its Stock-Keeping units with effect from Friday, March 15th, 2024.

According to the letter dated March 8^th and signed by its Zonal Manager, Lekan Awosanya, the company disclosed that the decision was taken to mitigate the impact of increased production expenses.

It would also be recalled that the Nigerian Breweries had increased prices of some of its products on February 19th, citing a similar reason for the decision. The latest notice would be the second time the company would jack up its prices in less than a month.

Speaking in separate interviews at various locations, some consumers of Nigerian Breweries products expressed mixed reactions over the latest price increase, as many of them believe it will have both positive and negative impacts on the company.

Jude Okeh, a beer parlour owner lamented the possible economic impact the latest decision will have on his business, saying many operators like him are yet to recover from the previous price increase.

“We know that the company is facing challenges in meeting consumers’ demand but for people like us who are dealing directly with customers, it has not been easy for us as well. What is the point of increasing product prices when there is nobody that will patronize you?

“From January till date, I have not sold half of the drink I usually sold in one weekend early last year. I can count the number of people that walk in to drink beer in this place in a day unlike before when everywhere will be filled up, especially in the evening when people come around to relax. Increasing the price again this time is like they are indirectly sending some of us out of business.” He said

While also stating her position, another beer parlour operator, Madam Rebecca Aboderin disclosed that she has been in the business for over 20 years and could boast of so many things she had achieved with the proceeds. But presently, it looks like the business is taking a downturn because of the economic situation.

“Before now, if there is any drink Nigerians can do without, it is not beer. But I must confess to you that right now, people are beginning to find alternatives to beer. As of last December, I would sell like 20 cartons of trophies within two or three days in bottles, especially on weekends. But the story has changed since the beginning of this year.

“I started experiencing a drop in patronage in February when the company increased their prices which also affected us. Those who usually come in to drink two or three bottles of Heineken, Trophy, and others began to reduce the quantity they consumed. Some customers who normally come around every day are now coming twice or thrice a week and in most cases, it is on the weekend. The business has been generally dull and it is no longer as lucrative as it used to be. So I wonder what will happen if they eventually increase the price again as contained in their recent announcement.”

While some of the consumers expressed mixed feelings about the development, others aligned themselves with the reason cited by the company to increase product prices.

“For me, I think it is better for them to increase the prices of products and remain in business than to retain the old prices and fold up. We all know what the economy is saying today and it is even worse in Nigeria because of the challenging business environment. For any company to survive the kind of environment we have in Nigeria at the moment, it has to adjust to the system by increasing commodities prices in relation to production costs.

“So I can’t blame Nigerian Breweries for increasing prices of their products because they too have to remain in business. They are not here for charity. They are in business and they must do everything to survive the environment and that is what they are doing presently.” Benard Okechukwu stated.

On his part, Jide Ilori posited that it is advisable for people to reduce the quantity of drinks they consume or switch to another brand that can offer them the same satisfaction.

In his words, “The truth is that you can’t compare the Nigerian breweries’ product with any others. The difference is clear. So for someone like me, I have decided to reduce the quantity of beer I drink. If other consumers can toe that path, there won’t be any issue about NB’s decision to increase prices. They are not forcing consumers to drink themselves to stupor. And if you cannot patronize their brands, go for alternative with affordable price. That is the way to go for now. “He maintained.