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Booze war quietly escalates in Dominican Republic

Santo Domingo.- Leading rum maker Brugal on Monday confirmed having been consulted for a National Competitiveness Commission (CNDC) study on the impact on the domestic market of alcoholic beverages after AmBev acquired  the Dominican Nacional Brewery (CND).

It said the regulator’s study “contain the same concerns” which Brugal has been communicating in writing to the CND for more than two years “on their practices in the market after its merger with AmBev.”

The Brewery incurred in anticompetitive practices affecting the rum market in the country, according to the study. “It was verified that customers are pressured to reduce the marketing presence of Brugal rum and increase Barceló, which is distributed by the brewery.”

“It has been noted that AmBev-CND pressed customers to withdraw all advertising material that had been placed in the businesses by the company Brugal. Those who wouldn’t abide by this request, would see the discount they receive when buying beer withdrawn, or the supply of that product would discontinue.”

It says AmBev-CND provides tents, stages, freezer and discounts on the purchase of Presidente beer or Barceló rum in exchange for pulling the ads of Brugal rum. It adds that customers who wanted Presidente beer had to buy Barceló rum.

“Brugal believes in free and fair competition as an essential part of the institutional development of the country, and that a law guaranteeing free and fair competition should be part of institutional strengthening,” the leading rum maker said in the statement.

Source: DT

Aug 24, 2016

Category: DR News |

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Last updated October 26, 2016 at 10:54 PM
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