To mitigate foreign exchange challenges encountered during the 2016 financial year, Nigerian Breweries Plc, has announced plans to intensify its local sourcing of raw materials as well as seek further improvements in its sorghum value-chain.

Besides, the brewer also noted that it would be consolidating its earnings and profitability through improved market penetration with its innovative products, adding that it would carefully assess its price adjustment strategy in ensuring a balance in the management of input costs and price consumers are willing to pay for its products.

At a current sourcing level of about 50 per cent of its raw materials locally, the brewer is optimistic of achieving its 60 per cent target before 2020. Speaking to journalists ahead of the firm’s yearly general meeting, the Managing Director of Nigerian Breweries, Nicolaas Vervelde, said the company is making progress with its partners – International Fertilizer development Centre (IFDC), and Psaltry International, a local processing company, on value extraction from cassava.



Vervelde said Nigerian Breweries was also making progress in the deployment of new hybrid sorghum varieties, adding that yields have increased over time in line with the firm’s growth projections.

He also expressed optimism in the company adapting to policies in the operating environment in order to deliver good return on investment to stakeholders. “It is anticipated that economic activities will improve in 2017 considering the far reaching fiscal and monetary measures being planned and implemented by the Federal Government. It is therefore hoped that with the gradual rise in the price of oil and a steady increase in the volume of oil output, the Naira will be strengthened and forex will be more available for businesses.

“The brewed product market would remain competitive and consumers are expected to continue the down-trading as they seek for more affordable brands. Cost leadership and market leadership supported by innovation remain our key strategic pillars”, he added.
On the company’s Q1 results, Vervelde explained that the cost of goods sold increased by 25 per cent as a result of higher input costs while results from operating activities and profit after tax grew by seven per cent and nine per cent respectively, impacted by lower net finance charges and a continued focus on its cost efficiencies.
Revenue for the period grew by 18 per cent due to the impact of price increases implemented in 2016, to cushion the effects of the operating environment. He further said that Nigerian Breweries has developed a set of competing portfolio to address the needs of a diverse consumer base, even as he decried the low per capita consumption of beer in the country.
He said while Nigeria has a large population of over 170 million people, it only consumes 11-litres per person, while other countries with large population have far higher consumption per capita.
more at http://www.akelicious.com/2017/04/nigerian-breweries-to-intensify-local.html

good move

What is d relationship of our ddevelopment wit d year 2020 hmmm dis 2020 will definitely come .let me b watching frm d higher places

Cool... maybe we can start growing barley and hops in middle belt of Nigeria instead of importing it.

Penetrate ke

Excellent move. This is the kind of initiative we want FMCG/Beverages companies to adopt not over reliance on foreign commodities hence putting pressure on Naira. We have what it takes to get there. Mehn this is an opportunity to tap into this kind of initiative by investing in sorghum, barley, soyabeans and wheat. How much be plot of arable land for ogun, Plateau and Benue state sef?

Hmmm. Okay nice move. But make E dey real

ezecy:
Cool to hear

:

:I will Design A Basic Company Website for 100 people for free. You are not paying me a dime. Its all for free. All you need to have is your domain and hosting which you can purchase by yourself. You will also provide your logo, images and content.

Its a freewill for 100Persons

You can call or chat over whatsapp via 0 9 0 6 5 2 3 4 8 5 9

Design concept will be based on your kind of business and it will be a basic company website just 5Pages (Home,About Us,Services, Clientele/Gallery, Contact Us) and above all it will be highly responsive.

Its a freewill,....

I just love the Nigerian Breweries. Not that I drink but their policies and care for workers. Not like those stingy bottling companies....... I no mention name o

Good for the local economy.

That's a very good idea

NubiLove:
Cool... maybe we can start growing barley and hops in middle belt of Nigeria instead of importing it.

And who says they've not been using GMOs all this while?
You think there's enough food crop for survival that nations would rather worry about their brewed beer?
Grow hops n barley if you want, the genetically modified hops and barley will still send u outta the raw material market.

Wetin I dey yan sef

what's good about this move?
3years to achieve 10% increase

DON'T JUST WATCH. MAKE IT HAPPEN!

Suko110:
What is d relationship of our ddevelopment wit d year 2020 hmmm dis 2020 will definitely come .let me b watching frm d higher places

Aha. Una no wan continue to import? *hiss*

Our client a vietnam cashew trading firm has buying requirement of 100MT at 740 CNF to HMC Vietnam with an irrevocable LC/ as payment term.

If interested mail sales@tradesrunner.com or call 07053944321.

No one will supply to you ex lagos @ that price let alone CNF
(Quote) (Report) (Like) (Share)

Re: Raw Cashew Nuts Export Contract To Vietnam by EXPORTFINANCE: 9:44am On Apr 08, 2016
I need cashew nuts in stock only!...load and pay basis only!!...call 08026225888 wattzapp: 08077881934
(Modify) (Quote) (Report) (Share)

Re: Raw Cashew Nuts Export Contract To Vietnam by EXPORTFINANCE: 2:52pm
CAN YOU DELIVER TO LAGOS WAREHOUSE AT A VERY COMPETITIVE PRICE?......

Hello Cashew Nut suppliers,

We are taking RCN 2020 crop in our Lagos Warehouse.

Supplier should take note of this specification:
Moisture not more than 10%
KOR - 48-50+lbs
NC- 190+


Payment on delivery after weight inspection and quality testing.

For Price confirmation...
Please call: 08037171978
08077881934 (WhattApp)