By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
BAHAMIAN juice drink manufacturers yesterday said they were still exploring ways to combat the 50 per cent tariff slash for rival imports, one telling Tribune Business: "It's not difficult to compete; it's impossible".
Mervin Sweeting Jr, president of Switcha, said: "The challenge now is that it is much more cheaper to purchase the imported products than it is to purchase ours. I wonder if people understand how significant this tariff rate has been on our market. It's not difficult to compete; it's impossible."
The Minnis administration slashed duty on imported fruit drinks to 30 per cent in the 2017-2018 Budget, having initially intended to eliminate the previous 60 per cent tariff entirely.
"Had they reduced tariffs along with Business Licenses, electricity costs and other taxes we could compete, but with no concessions added and reduced duty for foreign competitors, it doesn't bode well for us," said Mr Sweeting.
"The Bahamas is hostile towards our business model and industry, and that is a sad thing. We have to now think of ways to counteract what has happened. We have seen in the past entire industries wiped out by government policy, and I don't think that the Bahamas can afford more people losing their jobs."
Geoffrey Knowles, Aquapure's operations manager, told Tribune Business: "What we have done to counteract it is we have increased our marketing substantially on Tampico, and also on the water side. That's one thing that we have done to sort of counteract that.
"What it has shown us is that we are flat over the last three months. There has been no increase or decrease. Looking at the stores we normally sell to, when it comes to Sunny Delight their inventory of Sunny Delight is substantial over that period of time. We are going to continue our marketing efforts, and some new packing, to hopefully improve sales. We're not losing any ground but not gaining any."
Mr Knowles added: "There is concern. When you have a significant drop in duty there is concern. It has made the competition cheaper, and we are hoping that we don't have to match prices with them.
"We have completed installation of our equipment to the tune of just about $500,000 to bolster our Tampico line, and I am hoping that we can pay it off. We have got our fingers crossed."
Comments
TheMadHatter 6 years, 5 months ago
...and it will only GET WORSE under a membership in the W.T.O. EVERYONE needs to call their MP and other political contacts and ask them to OPPOSE any membership in W.T.O. (world trade organization) or ANY OTHER international foolishness.
Unless, of course, we want to go back to slavery days. It's a choice.
sealice 6 years, 5 months ago
Buddy you need to look at the Roberts and the big wholesalers that constantly pressure the government to reduce these imports whilst at the same time putting your products on the lower shelves that no one can see you product on once someone has moved 1 bottle. You need more from the government then reduced tarriffs, you the pricing board to make sure they keep the prices of the foreign juice at the right level and not just lower it to compete against your bahamian product which they have done in the past, are probably doing to switcha now and will do so in the future to another Bahamian business. Big business don't care about the small man whether you bahamian or foreign they care about their bottom line
whybahamas 6 years, 5 months ago
You mean Tampico the liquid sugar drink? Anyone ever look at the label on one of them? It is loaded with sugar then two types of artificial sweeteners on top of that! No wonder the Bahamas leads the world in diabetes and obesity.
Millennial242 6 years, 5 months ago
Yeah...the same Tampico the vendors use to make 'Daquiris' on Cabbage Beach to sell to Tourists. I couldn't make this up if I tried!
John 6 years, 5 months ago
Well many other local producers are facing similar problems. And with the shoddy economy consumers are mostly price conscious more than anything else. They buy at the lowest price and worry about health and safety concerns later. And with Trumps massive plan to reduce taxes to businesses and individuals in the USA by billions of dollars before Christmas this may mean additional shifts in buyer behavior. Either products will get cheaper of they will disappear off the market due to competition. And hopefully the cost of living will go down across the board for many as China and Japan will have to reduce prices, some of which are already rock bottom, in order to compete.
jujutreeclub 6 years, 5 months ago
Off the topic a bit locally but just a prime example of how the local vendors are outpricing themselves. I had an issue with my car and was diagnosed as a lower control arm. I checked the prices here at local shops for one. The price i got was $260.00. I then went online and checked the price of same. I found that I was able to get 2 of the lower control arms, 2 inner tie rod ends, 2 outer tie rod ends, 2 stabilzer links, 2 boots and the clamps for same, 12 items for $99.00. When adding freight and customs, my total came to $204.00, which is $56.00 less than 1 of the lower control arms, so where do you think I purchaqse my parts from? US, you are right. The markup on these items is toooo high therefore folks travel to the US to shop for this same reason.
ohdrap4 6 years, 5 months ago
you can tell a similar tale for clothes.
but remember, it is expensive to travel to the US, unless you have to travel for other reasons, to pick up a few items,
i had a set of dentures made that cost me 1075 in total, it would have cost me 1,200 in the US, plus ticket and hotel-- more expensive actually,
killemwitdakno 6 years, 4 months ago
No way all imported juices are competitors. If Sunny Delight is close in comparison and you are better, then request protection against that at a better price. Couldn't have expected that a tariff caused many buyers to chose one local style. Use made in Bahamas.
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