E-Malt.com News article: Uganda: Nile Breweries raises prices of key brands, urges distributors to observe fair pricing

Nile Breweries Limited, SABMiller’s subsidiary in Uganda, has urged all its distributors, stockists and retailers to observe fair pricing of the company's brands, so as to deliver quality beer to consumers at an affordable price, the parent company reported on September, 6.

Last week, the company announced a price increase averaging 8.6% for its key brands. This price increase is necessary as a result of increases in input, operating and financing costs, the brewer said.

"The depreciation in the exchange rate following the global recession has resulted in cost increases for containers and packaging material in particular, while we have experienced a sharp increase in freight costs passed onto us by our third party transporters," a company statement reads.

"Recent fuel price increases have also pushed up the cost of transport, which is a significant cost driver in our business due to the bulky nature of beer."

"Our intensive expansion programme, which doubled brewing and packaging capacity last year, and continues with the construction of a barley malting plant this year to broaden our local raw material supply chain, has imposed substantial loans on the business at high interest rates."

"The modest price increase affects the mainstream brands, Nile Special and Club Pilsener, and the economy brand Eagle Extra."

"The prices of all Nile Breweries' premium brands, Nile Gold, Castle Milk Stout, and Redd's Premium Cold remain unchanged. Similarly the prices of the company's imported premium brands, Castle Lager and Grolsch, will be unaffected."


15 September, 2010