Turnovers from the sachet and small PET plastic and glass bottles are expected to plummet, hurting the finances of Guinness Plc, International Distillers Limited, Grand Oak and many other distillers of alcoholic beverages following a new policy by the federal government.
The profits of the companies are expected to drop in the next two years as the Nigerian government seeks to phase out sachet and small PET bottle products for the products.
Already, producers of alcoholic drinks in sachet packs, as well as PET and glass bottles with 30 percent ABV (alcohol by volume), have begun to cut production in line with a directive from government agency, National Agency for Food and Drug Administration and Control (NAFDAC).
The reduction in output is pegged at 50 percent, resulting in unavailability of such products produced by various brands including DeRok, Action Bitters and Squadron in the market.
Director-General of NAFDAC, Mojisola Adeyeye, in a statement recently revealed that companies that registered for the production of sachet packs, PET and glass bottles with 30 percent ABV prior to the policy have until 2024 to do away with the products in focus.
Also, promoters behind newly registered alcoholic brands with 200ml volume, have been given the opportunity to re-register for free in order to conform to the policy.