Nigerian Breweries Plc To Close Two Of Nine Breweries In Nigeria

Nigerian Breweries Plc has revealed plans for a company-wide reorganisation which will include the temporary shutting down of two of its nine breweries in Nigeria.

The prominent beverage company said the temporary shutdown was part of its business recovery plan and aimed at improving operational efficiency, financial stability, and enabling business profitability in the harsh economic climate.

In a statement signed by its Corporate Affairs Director, Sade Morgan, the company underscored its dedication to minimise the impact of its workforce by exploring practical options.

Some of the measures it noted in the statement would include relocating and redistributing the company’s employees to the other seven breweries, and for those who would be inevitably affected, extending severance packages to them.

Letters signed by the company’s Human Resource, Grace Omo-Lami, and addressed to the leadership of the National Union of Food, Beverage & Tobacco Senior Staff Association indicated showed that the company informed both unions that its proposed plan would entail operational efficiency initiatives and a company-wide reorganisation that involves the temporary suspension of operations in two of its nine breweries.

In accordance with labour requirements, the company invited the unions to discussions on the implications of the proposed measures.

The company reiterated that it recently informed the Nigerian Exchange Group of its strategy to raise N600 billion capital by means of a rights issue, as a way of restoring the company’s balance sheet given the net finance expenses of N189 billion incurred in 2023 propelled mainly by a foreign exchange loss of N153 billion as a result of the naira devaluation.

Managing Director/CEO Nigerian Breweries Plc, Hans Essaadi, while speaking on the issue said, “The tough business landscape characterised by double-digit inflation rates, naira devaluation, FX challenges and diminished consumer spend has taken its toll on many businesses, including ours. This is why we have taken the decision to further consolidate our business operations for efficient cost management and optimal use of our resources for future sustainable growth.

“We remain wholly committed to having a positive impact on our host communities and our consumers; leveraging our strong supply chain footprint; excellent execution of our route to market strategy; and our rich portfolio of brands across the lager, stout, malt, soft drinks, and energy drinks categories; and more recently, wines and spirits with the acquisition of distell.’’