The federal government’s decision to effect a change in the country’s Excise Duty System may have begun to take its toll on the brewed product sector, as operators have hinted of a possible hike in the prices of its alcoholic products.
Dropping the hint in Lagos, at the pre-Annual General Meeting of the Nigerian Breweries Plc., the company’s Managing Director and Chief Executive Officer, Mr. Jordi Borrut Bel, explained that the Excise
Duty which was raised to 30 kobo per centiliter (N30 per litre) of beer, since June 4, 2018, had impacted negatively on the company’s revenue and profitability.
He explained that the pressure on consumer purchasing power, made it difficult for the company to pass on the additional cost burden to consumers of the products last year.
The NB Plc boss however explained that with the federal government contemplating a further amendment in Excise Duty this year, the company would be left with no choice than to pass some of the costs to its consumers.
Jordi however assured of the company’s commitment to ensure that the company continues to provide its consumers with value-adding, quality offerings.
“In line with our being a brand-led and consumer-focused company, we’ll continue to invest in our brands, as well as other activities that help to build the brands and excite consumer.
“Our company has always invested ahead of the curve. This was sustained in 2018 with various investments in our production operations across the nine breweries, both in terms of efficiency, as well as sustainability,” he added.
He explained that the company, as a responsible corporate
organisations had been able to drive awareness among the nation’s youths ,on the need to drink responsibly in some mega cities, across the federation.
He also described 2018 as providing the opportunity for the company to reward some of the consumers of its Heineken brand,, as they embarked on an all-expense paid trip to Amsterdam.
Jordi also disclosed that the company also undertook a review of its internal processes and ways of working, through its Simplification Project, a project aimed at increasing the company’s agility as an organization, thereby helping it respond faster to changing market dynamics.
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