Cameroon rejects proposed beer price hike amid industry challenges 

CAMEROON – Cameroonian government, led by Trade Minister Luc Magloire Mbarga Atangana, has dismissed a proposed hike in beer prices during a meeting with beverage industry stakeholders.  

This decision came after the National Union of Hygienic Beverage Distributors of Cameroon (Synasdibohycam) and the National Union of Cameroon Beverage Retailers (Synedeboc) expressed intentions to unilaterally raise drink prices. 

The major brewer, SABC, cautioned that prices had already unofficially increased, leading to industry imbalances. Evidence indicates that only a few beer outlets adhere to the recommended retail price.  

Over the past five years, production costs have surged, prompting brewers to seek price adjustments to offset rising expenses such as raw materials, consumables, fuel, gas, electricity, taxes, and wages.  

Synasdibohycam advocates for a 50 CFA franc increase for small bottles and 100 CFA francs for large SABC-sold beer bottles. This proposal is supported by the Cameroonian beer market leader, who also demands a 100 CFA franc price hike to absorb rising costs. 

Since the last official drink price hike in 2019, industry players have continuously sought increases without success.  

Trade Minister Luc Magloire Mbarga Atangana acknowledged that pricing issues are just one of many challenges facing the brewery sector. He announced plans for an extensive meeting with stakeholders and relevant authorities in a month to discuss long-term solutions. 

Recognizing the need for a comprehensive overhaul of the brewery sector, especially in light of challenges associated with trade liberalization under the African Continental Free Trade Area (AfCFTA), Atangana warned of the potential collapse of entire production and distribution sectors if reorganization efforts are not undertaken. 

The proposed overhaul comes at a time when Cameroon is experiencing an increase in beer and soft drink exports.

The National Statistics Agency (INS) reported that beer exports surged by 73 percent to 12,602 tons, generating CFA 5.7 billion (US$92.38 million) in revenue in 2022.  

Similarly, soft drink shipments saw a notable increase, with exports totalling 7,124 tons and generating CFA 3.5 billion (US$56.7 million), marking a 46.6 percent volume increase and nearly 61 percent revenue growth compared to the previous year.