Cameroonian Beverage Company Faces Challenges, Considers Price Increase

However, despite its success, the company is grappling with several challenges that are complicating production and threatening its financial stability.

CEO Stéphane Descazeaud highlighted inflationary pressures on raw materials and anticipated increases in excise duties outlined in the 2024 finance law as significant strains on the company. During the inauguration ceremony of the Yaoundé plant extension, Descazeaud emphasized the need for support from the government to ensure continued investment and production to meet market demands.

To mitigate the impacts of these challenges, the CEO is considering a price increase of 100 FCFA for beer, raising the price of a 65cl bottle from 650 FCFA to 750 FCFA. Descazeaud explained that such increases are necessary to offset rising costs and ensure the company's sustainability.

However, consumers have expressed concerns about the proposed price hike, citing economic hardships and questioning the need for such an increase. Nevertheless, the company attributes the necessity of the price hike to frequent power outages since December 2023, which have reduced production capacities, as well as unfair competition from smuggled beer from Nigeria.

This call for a price hike mirrors the request made by the Cameroon Alcohol Producers Association (CAPA) to the government for a 50 FCFA increase in beer and soft drink prices due to rising tax burdens. The industry's plea underscores the challenges facing beverage producers in Cameroon and the urgent need for supportive measures to ensure their sustainability in the face of economic pressures.