Nigerian Breweries Plc has announced a price increase across its range of beverages, including Star Lager, Gulder Lager, Budweiser, and malt drinks, citing persistently high operational and input costs. The company informed distributors in the West Zone that the adjustments would take effect from Tuesday, November 25, 2025, assuring partners that confirmed orders before the deadline would retain current pricing.
The move comes as the brewer grapples with rising production costs. In Q3 2025, the cost of sales jumped 12.83% to N204 billion due to increased spending on raw materials and consumables. Operating expenses also surged, with selling costs rising 37.41% to N63.1 billion and administrative expenses soaring 120.24% to N30.8 billion. Despite these challenges, Nigerian Breweries posted an operating profit of N11.2 billion, a rebound from a loss of N9.09 billion in the same period in 2024.
In a statement, Lucky Oiwoh, Zonal Business Manager – West, emphasized that the price adjustment was carefully considered and aimed at maintaining the company’s support for distributors during difficult economic times. Distributors were encouraged to contact Regional Business Managers for guidance on the new pricing structure. This step reflects a broader trend in the Nigerian beverage industry, where major brewers like Guinness Nigeria and International Breweries have also adjusted prices in response to inflation and production costs.
After years of financial setbacks, Nigerian Breweries has been regaining its footing. Strategic measures such as clearing foreign debts, settling high-interest local loans, and reducing net finance expenses have significantly improved profitability. The company reported a 69% increase in net sales in the first quarter of 2025 and an after-tax profit of N44.6 billion, marking its first quarterly profit in nearly three years.
The latest price hike underscores the delicate balance between maintaining profitability and supporting consumers amid rising costs of living. While beverage sales have shown strong growth over the past two years, persistent inflation and high essentials prices continue to shape consumer spending patterns, making the industry’s recovery a cautious but encouraging one.
source: insidebusiness