The Tribune

By ANNELIA NIXON

Tribune Business Reporter

anixon@tribunemedia.net

A LIQUOR store operator said a strong Labour Day and Bahamas Carnival weekend helped offset rising wholesale alcohol costs while retailers are now being forced to pass distributor price increases on to consumers.

George Robinson Jr., owner of Base Road Wholesale Bar, said retail liquor prices climbed at the start of June after distributors raised prices, with some beer products increasing by about 10 percent and certain spirits rising between 15 and 20 percent.

“We had to go up,” Mr Robinson said. “What we don’t like that they did, they went up on us during June 1 and on May the 30 and May the 31 they had a big sale for the public. And then went up on us June 1. We don’t think that was fair. We told them about that. That’s something we are fighting right there. Nobody made no money that weekend.”

The comments highlight mounting tensions between retailers and distributors in The Bahamas’ highly competitive alcohol market, where small businesses often find themselves squeezed between rising wholesale costs and consumers’ sensitivity to price increases.

Despite the cost pressures, Mr Robinson said holiday-related events delivered a welcome boost to sales.

“The holiday was great,” he added. “We had a good weekend for the holiday. We only got by on the holiday because they [distributors] were close. They are closed on the holidays. So it gives us an opportunity to make something extra.”

Labour Day celebrations and Bahamas Carnival festivities generated additional customer traffic throughout the weekend.

“I saw most of my sales on the Labour Day holiday,” Mr Robinson said. “We were open up on Labour Day. And then the Carnival was on Saturday. That was a little extra boost too.”

He said Junkanoo groups, parade goers and spectators along the route all contributed to increased spending.

“Friday, they had all the parades, and we had a lot of the Junkanoo groups had little celebrations. They supported us,” he said. “And then you had the rally. The PLP, when they fell off from the parade, they came this side. That was a little boost too. They stopped by for water and soft drinks and everything.”

According to Mr Robinson sales during the holiday period rose approximately 10 percent compared to a typical weekend. However, he said those gains are being impacted by higher operating costs and the need to maintain competitive pricing.

Mr Robinson said retailers generally match distributor increases rather than applying additional markups, largely because customers can often purchase directly from distributors.

“We have a profit margin that we go by,” he said. “But basically we match it. If they go up 10 percent, we go up 10 percent. The field is very competitive. We are still competing with them. They are our biggest competitors right now, our distributors.”

He added: “If you do 15 percent, customers will boycott us and go to them.”

While higher prices may pressure household budgets, Mr Robinson believes demand for alcohol remains relatively resilient during major social events.

“When they ready to party, they don’t care about the prices,” he said.

Consumer preferences are also evolving. Mr Robinson said traditional spirits remain popular, but younger customers are increasingly gravitating toward lower-alcohol beverages and energy drink combinations.

“A lot of people, they’re into the wine and beers,” he said. “We had wine, beers and the other soft drinks like mojito, and they get some new drinks because a lot of people not drinking the strong drinks.”

He added that beverages containing five to six percent alcohol are gaining popularity among younger consumers, alongside energy drinks such as Red Bull and Monster.

The combination of rising wholesale costs and shifting consumer tastes underscores the challenges facing liquor retailers, many of whom are relying on major holidays and national events to drive volume growth while navigating increasingly tight margins.