Newbisco ,Kemps maker reduces quantity,Haasbro raises Noreos price by 100%,PZCussons puts soaps on ‘promo’ sale
Their strategies may not be altogether new but the current harsh economic conditions have been forcing fast moving consumer brands to adopt various survival strategies. FMCGs especially low priced consumer products such as snacks and beverages (ready-to-drink)are typically susceptible to any rise in rate of inflation.This is so because these brands may not be able to immediately increase their prices to adjust for increase in inflation because of fears of consumer resistance.Since the beginning of the year,FMCGs brands have been the worst hit by the country’s economic downturn which has spiralled into an economic recession in the last quarter(second). Scarce foreign exchange and prohibitive rates of exchange at the parallel market have shot the prices of raw materials such as wheat and semi-processed cereals, through the roof.
Brand owners such as biscuit-maker,Newbisco which makes Kemps cracker,reduced the quantity of the popular biscuit from four pieces to three per small pack.Another popular one,Noreos repacked its small pack of four pieces which sells for N10 to six pieces which it now sells for N20.Lets say a 50 per cent increase in price vis-a- vis the quantity of the product.
Some rivals such as Haasbro biscuits are taking a similar measure,with spiralling costs of production staring everyone in the face.
Annie 
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