• Thursday, June 13, 2024
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BusinessDay

IB raises beer prices over rising operation costs

IBPLC opens rights issue of 161.2bn shares to raise funds

…to take effect June 1

International Breweries Plc, has increased the prices of its beer and other stock-keeping units (SKUs) products over rising operation costs.

The new price hike is expected to take effect from June 1, 2024. The new prices released by IB Plc, in a memo to all its esteemed business partners, including distributors, bulk-breakers, key- account stores and retailers and signed by Olaleye Abimbola, the company’s head of sales, directed all its trade partners to complied with the new price upward adjustments, beginning from June 1st, citing current market realities behind the reason for the review, mostly inflationary pressures.

“We write wishing the best for you, your family and your business. This is to notify you, our valued business partner, that we are reviewing prices in our portfolio due to the current market realities, as we work to enhance our pricing models that ensure you are best served by us,” he said.

“To this end, the review of the prices of our selected SKUs will take effect on the 1st of June,” he stated.

“Find below the list of affected SKU’s: Eagle lager RB 600mix12, Eagle extra stout RB 600mix12, Trophy stout 600ml ×12, Beta Malt can 330mix24, Beta Malt PET 250ml×24, Beta Malt PET 330mlx24, Ground Malt can 330mix24, Ground Malt PET 250mlx24, Grand Malt PET 330mlx24.

“We are confident that this decision will be 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. Thank you for your attention,” Abimbola added.

However, the new price adjustments did not go down well with its esteemed business partners who are complaining bitterly of where to get funds to comply with the new prices and directive in the memo letter.

Specifically, the company’s distributors and trade partners are crying loud that the new interest rate of 22.5 per cent and Cash Ratio Rate (CRR) may scuttle their plans of approaching Nigerian banks for credits to adjust to the new price come June 1st.