Namibia Breweries Limited says it has no plans to adjust the price of its alcoholic beverages amidst the recently announced sin tax increases on excisable commodities.
NBL Managing Director Waldemar von Lieres said the sin tax has become an annual occurrence which the company plans for accordingly.
“We had plans for the increases and have taken the actions necessary in terms of our business to be able to carry those increases. We are a business that responds to the market and we will look at it, as and when necessary,” von Lieres said.
Finance and Social Grants Management Minister Ericah Shafudah last week announced a 6.75% sin tax increase effective 12 March 2025.
The adjustment saw the cost of a litre of sparkling wine rise by N$1.20, while a 750ml bottle of spirits increased by N$5.53. Wine has gone up by 64 cents per litre, and spirits saw N$18.52 per litre hike.
Additionally, the duty on cigars increased by N$369.36 per kilogram, while a pack of 20 cigarettes costs N$1.04 more.
Von Lieres said the brewery does not expect a negative impact from the adjustments.
“We want to position our product to be relevant to our consumers, which we believe we have. As we don’t expect a negative impact,” the MD said.
He however warned that the constant excise increase could become exorbitant.
“The one thing that the regulators also need to look at is, at what point does it become too much? Especially in terms of parallel imports, illicit imports, illicit alcohol, because there will be a point that it becomes too expensive. For us it is part of our business plans. A range of increases was within our planning, so that’s fine,” von Lieres said.
This is the fifth consecutive year the government has increased the sin taxes. NBL reported that it lost market share in Namibian beer volumes following a price increase in July 2023.
“Our interventions stabilised the volume decline and over the next 12 months, improved pricing and focus on excellent commercial execution drove a robust recovery,” NBL said.
During the 18 months financial reporting period ending 31 December 2024, the brewery faced stringent competition.
“We reset our pricing strategy and avoided price increases, recognising the growing price sensitivity among mainstream beer consumers. This boosted our market share, positioning us for sustainable growth,” the company stated.
