In a bid to restore financial health and ensure long-term sustainability, Nigerian Breweries Plc has unveiled plans for a comprehensive company-wide reorganisation, as part of its broader Business Recovery Plan. The move, the company says, is aimed at enhancing operational efficiency, stabilising its finances, and steering the business back to profitability amidst Nigeria’s challenging economic environment.
Operational Overhaul: Brewery Closures and Workforce Restructuring
In letters addressed to the National Union of Food, Beverage & Tobacco Employees (NUFBTE) and the Food Beverage and Tobacco Senior Staff Association (FOBTOB), Nigerian Breweries disclosed that the reorganisation will involve temporary suspension of operations in two of its nine breweries.
Signed by Grace Omo-Lamai, the company’s Human Resource Director, the communications acknowledged that the plan may impact workers in those facilities. However, the company affirmed its commitment to working closely with the unions to discuss implications and ensure compliance with labour regulations.
To mitigate the impact, Nigerian Breweries plans to relocate or redistribute affected employees across its remaining seven operational breweries, and has promised generous severance packages and support for those who may ultimately be affected.
Massive Financial Recovery Effort Underway
The reorganisation announcement follows a recent filing to the Nigerian Exchange Group (NGX), in which the brewer disclosed plans to raise up to ₦600 billion through a Rights Issue. This capital injection is intended to repair the company’s balance sheet after it suffered net finance expenses of ₦189 billion in 2023, largely driven by foreign exchange losses totaling ₦153 billion due to naira devaluation.
CEO Speaks on Strategy and Commitment
Hans Essaadi, Managing Director and CEO of Nigerian Breweries, described the current challenges as unprecedented, noting that the harsh business climate—marked by double-digit inflation, naira volatility, FX constraints, and weakened consumer spending—has taken a toll on operations.
“We have taken the decision to further consolidate our business operations to manage costs more efficiently and ensure sustainable growth,” Essaadi stated.
He acknowledged the human cost of suspending brewery operations in affected areas, but emphasized that the company remains committed to both its employees and host communities.
“We will continue to invest in our people, support our host communities, and ensure our presence is felt even in areas where operations are temporarily suspended,” he added.
Focus on Product Innovation and Market Expansion
As part of its strategic pivot, Nigerian Breweries is also focused on optimising production capacity in the seven breweries that will remain operational. Several of these have received significant capital investments in recent years.
The company also continues to leverage its robust supply chain, dynamic route-to-market strategy, and diverse portfolio of brands—spanning Lager, Stout, Malt, Soft Drinks, Energy Drinks, and more recently, Wines and Spirits following its acquisition of Distell.
A Legacy of Resilience and Market Leadership
With over 77 years of continuous operations in Nigeria, Nigerian Breweries remains a pillar of the country’s beverage industry. Despite the current headwinds, the company affirms its long-term commitment to the Nigerian market, its workforce, and millions of loyal consumers.
“We remain fully committed to Nigeria’s future and to playing a leading role in the country’s economic and industrial development,” the statement concluded.
