Brewing Sector’s Request Unmet as Beer Prices Hold Steady in Cameroon 2024
The Brewing Industry’s Plea Amidst Economic Challenges in Cameroon
In Cameroon, the brewing industry has been facing significant economic challenges. The Société Anonyme des Boissons du Cameroun (SABC), a leading company in the market, has been particularly vocal about the difficulties it faces due to the rising costs of raw materials, consumables, fuel, gas, electricity, and wages. Despite these increasing costs, the price of beer in Cameroon has remained unchanged, a unique situation when compared to global trends.
The CEO of SABC, during the inauguration ceremony for the extension of the Yaoundé factory, highlighted the resilience of the sector but also pointed out its limits. The brewing industry has seen more than a CFA33 billion increase in input costs over two years, with over 50% of its revenue going to the state in the form of various taxes and duties. The recent increase in excise duties, as decided in the 2024 finance law, adds to the fragility of the industry.
The brewing industry’s plea for government intervention is a call for a stable business environment that fosters development. The proposed CFA100 increase in beer prices is not just about adjusting to the inflationary pressures but also about formalizing the actual market prices, which unofficially have already increased. Bars rarely sell beer at the recommended retail price, with a 65 cl beer, recommended at CFA650, often selling for no less than CFA700.
This situation reflects the broader economic challenges faced by industries in Cameroon and the need for a dialogue between the government and the private sector to find sustainable solutions. The brewing industry’s plea is a testament to the ongoing struggle to balance economic growth, tax policies, and the cost of living.
The unchanged price of beer, despite the industry’s plea, raises questions about the long-term viability of the brewing sector in Cameroon and its ability to continue contributing to the economy without a reassessment of pricing strategies. It is a complex issue that requires careful consideration of the impacts on consumers, producers, and the government’s tax revenues.
As the brewing industry awaits a response to its plea, the situation serves as a reminder of the delicate interplay between business operations and economic policy. The outcome of this plea could set a precedent for how Cameroon handles similar economic challenges in the future.
There will be no change in the price of beer in Cameroon (at least for now). This was the decision of Luc Magloire Mbarga Atangana, the Minister of Commerce (Mincommerce) after a meeting with stakeholders in the brewing industry on July 16, 2024, in Yaoundé, the political capital of the country. With this decision by the government, producers who are members of the Cameroon Producers Association (Capa), the National Union of Distributors of Hygienic Beverages of Cameroon (Synasdibohycam) and the National Union of Operators of Beverage Outlets of Cameroon (Synedeboc), have seen their hopes of seeing an increase in the price of beer disappear. The current price scale remains the one approved since 2019, which sets the price of 65 centiliter blond bottles at 650 CFA francs.
The plea made by stakeholders in the industry on May 16 will therefore not have borne fruit.
A few months ago, industry players were calling for a 100 CFA franc increase in the price of beer. They justified their plea with an “inflationary tsunami” on raw materials, consumables, fuel, gas, electricity and wages that the beverage industry has been facing for about three years. Long before that, it was the transporters who approached Capa to demand an increase in the price of transporting brewing products following the second consecutive increase in the price of super and diesel (+15%) since February 3, 2024. Overall, distributors expressed their concerns about the additional charges they face while retailers raised the difficulties related to product availability and heavy taxation that impacts their business.
No accompanying measures
Two months ago, the Minister of Commerce stressed “the importance of addressing these issues with the relevant administrations.” But when reading the final press release sanctioning the work on July 16, no accompanying measures filter through between the lines. On the contrary, the government member called on stakeholders to take responsibility insofar as he rejects “the lack of organization, consultation and dialogue within the sector,” we read. In addition, the Mincommerce services continue, “contractual relations between producers and distributors are also mentioned. While these contracts should be the result of balanced negotiations, they would be more akin to ‘adhesion contracts’ imposed on distributors without any real room for manoeuvre. The producers contacted by the editorial staff did not wish to comment on this news.
It should be noted that if the Cameroonian government insists on a restructuring of the brewing sector. However, this decision could translate into the government’s concern to avoid other additional expenses for the final consumer in recent months. This concerns, in this case, the increase in fuel prices in the first quarter and most recently, the stamp duty on the national identity card (CNI) which will increase from 2,800 CFA francs to 10,000 CFA francs.
