CAMEROON – Cameroon’s brewing companies witnessed a substantial increase in beer and soft drink exports in 2022, according to data from the National Statistics Agency (INS).
The surge in exports indicates a promising trend for the beverage industry, even as industry players voice concerns about rising operational costs and government intervention.
The INS reported that beer exports surged by 73 percent to 12,602 tons, generating CFA5.7 billion (US$92.38M) in revenue.
Similarly, soft drink shipments saw a notable increase, with exports totaling 7,124 tons and revenue of CFA3.5 billion (US$56.7M), marking a 46.6 percent volume increase and nearly 61 percent revenue growth compared to the previous year.
Despite neighboring countries in the CEMAC region having brewing facilities owned by the same multinationals operating in Cameroon, Cameroonian beers and beverages remain highly sought after, particularly in countries like Gabon and Equatorial Guinea.
However, industry players have expressed concerns about the sustainability of brewing operations amidst rising costs.
During the inauguration ceremony for the extension of the Yaoundé factory, the CEO of Société Anonyme des Boissons du Cameroun (SABC), Stéphane Descazeaud, highlighted the challenges faced by the sector.
Descazeaud emphasized the impact of inflationary pressures on raw materials, consumables, and operational costs, coupled with stagnant beverage prices in Cameroon.
Descazeaud called for government intervention to address the industry’s challenges, advocating for a significant increase in beer prices to mitigate rising input costs.
He emphasized the need for discussions with the government to formalize the situation and ensure sustainable operations for brewing companies. Descazeaud noted that while market prices have increased, producers have not benefited from these hikes, leading to financial strain on the sector.
Additionally, Descazeaud outlined other issues affecting the brewing industry, including electricity outages and disruptions in supply chains, which have resulted in production challenges and stockouts.
“Like all other industrialists, we are fully experiencing the numerous electricity outages that have reduced our production capacities since last December and damaged much of our equipment, for which spare parts are not always available. The same is true for our local suppliers, whose disruption rate has peaked in recent months due to their production difficulties,” he stated.
These issues have further compounded the industry’s financial burdens and disrupted market dynamics, affecting selling prices and overall market stability.
The CEO’s remarks underscore the pressing need for collaborative efforts between industry stakeholders and government authorities to address the brewing sector’s challenges effectively.
As Cameroon’s beer and soft drink exports continue to grow, ensuring a conducive business environment and sustainable operations will be critical for the long-term growth and viability of the industry.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. HERE
