Alcoholic Drinks in Dominican Republic

Report Summary

Discover the latest market trends and uncover sources of future market growth for the Alcoholic Drinks industry in Dominican Republic with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

The Alcoholic Drinks in Dominican Republic market research report includes:

• Analysis of key supply-side and demand trends
• Detailed segmentation of international and local products
• Historic volumes and values, company and brand market shares
• Five year forecasts of market trends and market growth
• Production, imports by origin, exports by destination
• Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

• What is the market size of Alcoholic Drinks in Dominican Republic?
• What are the major brands in Dominican Republic?
• Have there been any alcoholic drinks legislative changes over the past 12 months?
• How is the alcoholic drinks industry affected by the recession?
• What is consumed more; beer, wine or spirits?
• What have been the key trends seen in new product developments?
• Do alcoholic drinks consumers want value for money or added value?

Why buy this report?

• Gain competitive intelligence about market leaders
• Track key industry trends, opportunities and threats
• Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Alcoholic Drinks market research database.

EXECUTIVE SUMMARY

Dominican Republic alcoholic drinks market still growing

Alcoholic drinks in the Dominican Republic is one of the fmcg industries that generally tends to maintain stability and growth every year. 2010 was a year in which the consumption of rum and beer increased. In the case of rum, the growth trend was due to the preference for white rum, which has come to substitute the consumption of cheap vodka in the Dominican Republic. Additionally, the categories of whiskies and sparkling wine, with a tendency to prefer brands with more ageing time, such as eight, 12 and 18 years, in whiskies, and sparkling wines being preferred to be consumed in bars and restaurants, both saw rising consumption. These trends were continuing to be seen in 2011 and are expected to last.

New trends in 2011

The Dominican Republic is a country with great potential for alcoholic drinks: the consumption is steady and consumers are open to tasting new brands and flavours. Over the review period alcoholic drinks showed expansion and new trends were being seen – one of the most important trends being “mixology”, which has been increasing since 2010. The mixing kit has changed from vodka plus another drink like a fruit juice or an energy drink to white rum plus the combination just mentioned. This trend is making consumers migrate from one subcategory to another, due to the fact that cheap vodka is not being produced with good quality and rum producers have also detected an opportunity to launch white rum in more appealing bottles that are attractive to consumers. Another trend to be noted is the successful arrival of new sparkling wines, which people are preferring to consume in bars and restaurants, looking to have products with a combination of good taste and good appearance, also giving them the sensation of having a world-class brand on their table and in their glass.

Beer and rum continue growing

Liquor stores lead the consumption and distribution in the off-trade

One type of retail business that emerged forcefully in the Dominican Republic in 2002 and continued to grow into 2011 is liquor stores. Currently, this distribution channel accounts for 40-50% in categories like whiskies and vodka. Additionally, consumers not only go to such establishments to buy alcoholic beverages, they also stay to consume them there, which is why they now have open spaces with tables or small parties are improvised in their parking lots.

Further increase in volume consumption expected over the forecast period

The consumption of alcoholic beverages will continue to increase in the Dominican Republic, especially categories like beer, rum and wine. Whiskies will see more emphasis placed on aged products, with new American brands also arriving in this area of the market. The country is open to receiving new options and therefore the impact of new beverages in the international market are also reflected in the Dominican Republic, such as the case of flavoured beverages and mixtures of several spirits, which are seeing and will continue to enjoy good acceptance in the Dominican Republic.

Table of Contents

Alcoholic Drinks in Dominican Republic - Industry Overview

EXECUTIVE SUMMARY
Dominican Republic alcoholic drinks market still growing
New trends in 2011
Beer and rum continue growing
Liquor stores lead the consumption and distribution in the off-trade
Further increase in volume consumption expected over the forecast period

MARKET BACKGROUND
Legislation
Table 1 Number of On-trade Establishments by Type 2008-2010

TAXATION AND DUTY LEVIES
Table 2 Taxation and Duty Levies on Alcoholic Drinks 2011
Table 3 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Categories 2011
Table 4 Selling Margin of a Typical Beer Brand 2011
Table 5 Selling Margin of a Typical Wine Brand 2011
Table 6 Selling Margin of a Typical Spirits Brand 2011

OPERATING ENVIRONMENT

KEY NEW PRODUCT LAUNCHES
Summary 1 Key New Product Developments 2010-2011

MARKET INDICATORS
Table 7 Retail Consumer Expenditure on Alcoholic Drinks 2006-2011

MARKET DATA
Table 8 Sales of Alcoholic Drinks by Category: Total Volume 2006-2011
Table 9 Sales of Alcoholic Drinks by Category: Total Value 2006-2011
Table 10 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2006-2011
Table 11 Sales of Alcoholic Drinks by Category: % Total Value Growth 2006-2011
Table 12 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: Volume 2011
Table 13 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: Value 2011
Table 14 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: % Volume 2011
Table 15 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: % Value 2011
Table 16 Company Shares of Alcoholic Drinks by Global Brand Owner 2007-2011
Table 17 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2006-2011
Table 18 Off-trade Sales of Alcoholic Drinks by Category and Distribution Format: % Volume Analysis 2011
Table 19 Forecast Sales of Alcoholic Drinks by Category: Total Volume 2011-2016
Table 20 Forecast Sales of Alcoholic Drinks by Category: Total Value 2011-2016
Table 21 Forecast Sales of Alcoholic Drinks by Category: % Total Volume Growth 2011-2016
Table 22 Forecast Sales of Alcoholic Drinks by Category: % Total Value Growth 2011-2016

DEFINITIONS
Published data comparisons
Sources
Summary 2 Research Sources

Alcoholic Drinks in Dominican Republic - Company Profiles

Cervecería Nacional Dominicana C x A in Alcoholic Drinks (Dominican Republic)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Cervecería Nacional Dominicana C x A: Competitive Position 2011

El Catador SA in Alcoholic Drinks (Dominican Republic)
STRATEGIC DIRECTION
KEY FACTS
INTERNET STRATEGY
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING

Isidro Bordas & Co in Alcoholic Drinks (Dominican Republic)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 8 Isidro Bordas & Co: Competitive Position 2011

Beer in Dominican Republic - Category Analysis

HEADLINES

TRENDS
The local production of the standard lager version denominated “light” continued to expand within the preference of consumers, taking away more and more share from the standard versions of the companies’ own brands. Such is the case with Presidente Light and Brahma Light, brands produced by Cervecería Nacional Dominicana and AmBev Dominicana, respectively. These more recent beer versions – the Presidente light version was launched in 2005, Brahma in 2008 and Bohemia in 2009 – were created as a strategy to beat tax payments by the companies due to the system of charging duties per alcohol volume. It has been a tactic that continues to impact positively on the overall category, given the wide acceptance these products have had across the whole of the public.

Production, Imports and Exports

COMPETITIVE LANDSCAPE
Cervecería Nacional Dominicana remains the leading company within the beer category, with its brands Presidente and Presidente Light seeing the highest sales and consumption. For over seven decades Presidente is said to have been linked to a particular way of feeling and being among Dominicans. The brand plays on nationalist feelings, using the denomination of a national brand.

PROSPECTS
The forecast for beer is that it will continue to see growth, mainly thanks to the locally-produced brands. There are no significant changes expected in this area, only a further decrease in consumption of standard beers and increasing consumption of their light versions. A concrete example of this trend is the decrease in consumption of standard versions of Presidente, Bohemia and Brahma; consumers are switching to Presidente Light, Bohemia Light and Brahma Light, still buying and drinking the same brand, but just opting for the light beer version instead.

CATEGORY BACKGROUND
Lager price band methodology
Summary 9 Lager by Price Band 2011
Table 23 Number of Breweries 2006-2011

CATEGORY DATA

Table 24 Sales of Beer by Category: Total Volume 2006-2011
Table 25 Sales of Beer by Category: Total Value 2006-2011
Table 26 Sales of Beer by Category: % Total Volume Growth 2006-2011
Table 27 Sales of Beer by Category: % Total Value Growth 2006-2011
Table 28 Sales of Beer by On-trade vs Off-trade Split: Volume 2006-2011
Table 29 Sales of Beer by On-trade vs Off-trade Split: Value 2006-2011
Table 30 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 31 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 32 Beer: Production, Imports and Exports: Total Volume 2005-2010
Table 33 Company Shares of Beer by National Brand Owner 2007-2011
Table 34 Company Shares of Beer by Global Brand Owner 2007-2011
Table 35 Brand Shares of Beer 2008-2011
Table 36 Forecast Sales of Beer by Category: Total Volume 2011-2016
Table 37 Forecast Sales of Beer by Category: Total Value 2011-2016
Table 38 Forecast Sales of Beer by Category: % Total Volume Growth 2011-2016
Table 39 Forecast Sales of Beer by Category: % Total Value Growth 2011-2016

Cider/Perry in Dominican Republic - Category Analysis

TRENDS
Cider/perry in the Dominican Republic is negligible

RTDs/High-Strength Premixes in Dominican Republic - Category Analysis

HEADLINES

TRENDS
The mixology trend in the Dominican Republic did not benefit RTDs sales as consumers switched to other drinks to be mixed like vodka and white rum. The other fact impacting sales negatively is the failure of fake cider products, such as Benedicta and Blue Light, which had artificially boosted sales between 2005 and 2008.

COMPETITIVE LANDSCAPE
Bacardi Dominicana led sales in 2011. The company has ranked first in the category since 2010, due to the poor performance by Miguel Barceló P & Company. Bacardi launched new products in 2011, which saw the company share jump from 21% to 39% in one year.

PROSPECTS
RTDs/high-strength premixes is expected to see negative growth over the forecast period, as companies continue to stop selling such products, due to the increasing appearance of product substitutes, such as vodka and white rum. Consumers continue to prefer cheaper options when drinking flavoured alcoholic drinks, thus the category is expected to see negative growth in both volume and value terms.

CATEGORY DATA

Table 40 Sales of RTDS/High-strength Premixes by Category: Total Volume 2006-2011
Table 41 Sales of RTDS/High-strength Premixes by Category: Total Value 2006-2011
Table 42 Sales of RTDS/High-strength Premixes by Category: % Total Volume Growth 2006-2011
Table 43 Sales of RTDS/High-strength Premixes by Category: % Total Value Growth 2006-2011
Table 44 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Volume 2006-2011
Table 45 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Value 2006-2011
Table 46 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Volume Growth 2006-2011
Table 47 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Value Growth 2006-2011
Table 48 Company Shares of RTDS/High-strength Premixes by Global Brand Owner 2007-2011
Table 49 Company Shares of RTDS/High-strength Premixes by National Brand Owner 2007-2011
Table 50 Brand Shares of RTDS/High-strength Premixes 2008-2011
Table 51 Forecast Sales of RTDS/High-strength Premixes by Category: Total Volume 2011-2016
Table 52 Forecast Sales of RTDS/High-strength Premixes by Category: Total Value 2011-2016
Table 53 Forecast Sales of RTDS/High-strength Premixes by Category: % Total Volume Growth 2011-2016
Table 54 Forecast Sales of RTDS/High-strength Premixes by Category: % Total Value Growth 2011-2016

Spirits in Dominican Republic - Category Analysis

HEADLINES

TRENDS
Consumption of spirits in the Dominican Republic is diverse, given the different subcategories within this area of the market. On a positive note there is increasing consumption in white rum, which is due to the release of premium local brands like Brugal Titanium and Barceló Platinum, both launched in 2009 at the reasonable price of Do$350-395 per bottle. This drink is attracting consumers from vodka, dark rum and many other types, who are trying this beverage. White rum can also be used for mixing trends, as well as other white spirits, but only this and vodka are widely consumed in the Dominican Republic mixed with other types of drinks.
Production, Imports and Exports

COMPETITIVE LANDSCAPE
In 2011, the leading rum in the Dominican Republic was still Brugal, with its production of around 80,000 litres a day. This company accounts for 68% of total volume sales of rum in the local market. The number two brand is Barceló, which, after a commercialisation agreement with Cervecería Nacional Dominicana, is expanding its distribution nationwide.

PROSPECTS
The mixology trend is expected to continue to be seen over the forecast period, boosting sales of vodka and white rum. Although in 2010/2011 the main trend was to mix vodka with another drink like a fruit juice or an energy drink, the trend is switching to white rum plus the combination just mentioned.

CATEGORY DATA

Table 55 Sales of Spirits by Category: Total Volume 2006-2011
Table 56 Sales of Spirits by Category: Total Value 2006-2011
Table 57 Sales of Spirits by Category: % Total Volume Growth 2006-2011
Table 58 Sales of Spirits by Category: % Total Value Growth 2006-2011
Table 59 Sales of Spirits by On-trade vs Off-trade Split: Volume 2006-2011
Table 60 Sales of Spirits by On-trade vs Off-trade Split: Value 2006-2011
Table 61 Sales of Spirits by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 62 Sales of Spirits by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 63 Rum Production, Imports and Exports: Total Volume 2005-2010
Table 64 Company Shares of Spirits by National Brand Owner 2007-2011
Table 65 Company Shares of Spirits by Global Brand Owner 2007-2011
Table 66 Brand Shares of Spirits 2008-2011
Table 67 Forecast Sales of Spirits by Category: Total Volume 2011-2016
Table 68 Forecast Sales of Spirits by Category: Total Value 2011-2016
Table 69 Forecast Sales of Spirits by Category: % Total Volume Growth 2011-2016
Table 70 Forecast Sales of Spirits by Category: % Total Value Growth 2011-2016

Wine in Dominican Republic - Category Analysis

HEADLINES

TRENDS
Wine has gained importance in the alcoholic drinks market in comparison to other categories in recent years. This effect in the Dominican Republic may be due to several factors: a change to a healthier lifestyle, as wine is seen as healthier than other alcoholic drinks; aspirational brand image, as any imported wine brand being consumed is seen as giving the consumer a more appealing look; education, as many wine distributors and specialist stores offer classes related to wine, its varietals, origin, vintage; and social status, because wine is perceived as a rich person’s product.

Production, Imports and Exports

COMPETITIVE LANDSCAPE
Each distributor has a portfolio of very different sales channels. The Dominican Republic has supermarkets with a wide wine section, which is usually divided by country of origin. El Catador SA is the leading wine importing company in the Dominican Republic and it is fully dedicated to the distribution of wine. El Catador distributes famous brands in the Dominican Republic like Concha y Toro, Santa Rita, Casillero del Diablo, Marqués de Riscal, Muga, Trapiche, Protos and Frontera.

PROSPECTS
Wine continues to gain popularity, but for a big part of the Dominican population wine is still a luxury item that is purchased only for special occasions. In the Dominican Republic still red wine is expected to register a 6% total volume CAGR over the forecast period. Still white wine and still rosé wine will see 4% CAGRs, with rosé wine being promoted by different distributors due to the fact that it was lagging behind the sales of red and white wines.

CATEGORY DATA

Table 71 Sales of Wine by Category: Total Volume 2006-2011
Table 72 Sales of Wine by Category: Total Value 2006-2011
Table 73 Sales of Wine by Category: % Total Volume Growth 2006-2011
Table 74 Sales of Wine by Category: % Total Value Growth 2006-2011
Table 75 Sales of Wine by On-trade vs Off-trade Split: Volume 2006-2011
Table 76 Sales of Wine by On-trade vs Off-trade Split: Value 2006-2011
Table 77 Sales of Wine by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 78 Sales of Wine by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 79 Forecast Sales of Wine by Category: Total Volume 2011-2016
Table 80 Forecast Sales of Wine by Category: Total Value 2011-2016
Table 81 Forecast Sales of Wine by Category: % Total Volume Growth 2011-2016
Table 82 Forecast Sales of Wine by Category: % Total Value Growth 2011-2016