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Soft beverage companies expanding in the Dominican Republic
posted on: Nov 24 2010 7:52 by The Reporter. Viewed 789 times.
The beverage industry in the Dominican Republic is showing some interesting developments.
Between October and November, two "soft drinks" bottlers have increased their fleet with multimillion dollar investments that seek to increase the speed to meet their distributors, and swell their sales.
It is a business where foreign brands have dominated and since 2005 there has been a market war which to date has benefited the consumer as prices on some brands have dropped.
Changes
The first major expansion publicly noticed was from San Miguel Industries, which manages the Kola Real brand and in late November purchased an additional 24 Scania trucks, with an estimated investment of US$ 1.8 million.
According to Mario Medina, director of foreign trade, the new vehicles will strengthen distribution in the South, the area of Santo Domingo, and the rest of the country.
He explained that this is not the only investment.
During the year a total of US$6.5 million has been injected, which has been distributed in several areas.
"It's a market with great potential because factors such as the hot climate make soda consumption very high," says the manager of Kola Real, a Peruvian company who arrived in 2005, creating an impact in the market with its policy of low prices.
Nearly a month later, i.e last weekend, the Mexican Bepensa company, which manages Refrescos Nacionales (National Refreshments) and the Coca Cola brand locally, said it acquired 52 new trucks, worth U.S. $ 5.1 million to enable it to reach 60 thousand businesses directly.
Bepensa Vice President of Sales, Andrew Zentella, said he does not attribute the increased number of vehicles of both companies as a response to an increase in sales, but as a change to their routine operations, which aim to improve the service to retailers.
"We have been improving the distribution, because before some points we would only visit once a week, however, with the acquisition of new vehicles and we can now deliver up to three times a week," he says.
In the overall market, the Mexican company executive believes it is the north that has experienced the most growth, followed by the south.
Of the five soda companies in the country, four are foreign or are managed by foreign companies. It seems that the business is attractive to foreign investors. As Caribbean people, Dominicans are lovers of colors and flavors.
The Industrial Soft Drinks Association (Asibegas) is the entity that brings together the companies that bottle carbonated beverages in the Dominican Republic.
This sector belongs to segment of industries within the economy offering a service that is embodied in the products they offer. according to their size, there are four companies that have to do with the distribution and sales of soft drinks.
They are Refrescos Imperio, Kola Real, Bepensa (Refrescos Nacionales) and Ambev. Following strategic lines, their premises are located in areas of distribution that will allow businesses to more quickly bring products to their customers.
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