Dominican National Brewing/Presidente Sales down 20%

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LTSteve

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Jul 9, 2010
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Say it ain't so. Dominican National Brewing executives met with Medina recently and claimed that sales of Presidente have dropped 20% since the government initiated new taxes effecting beer sales. How can this be? I am stunned and forlorn that this could happen in the DR. Are citizens drinking more rum, Chevas or just bottled water? I think if we all make a concerted effort to drink one additional beer everyday we can escape this crisis. Please help? Just one more a day and pain will go away. Think about it.

LTSteve
 
Conchman

Conchman

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Jul 3, 2002
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A shining example of how tax increases hurt business, which in turn cause a loss of jobs and eventually a DECREASE in tax revenue, as higher prices, less tax payers, and less production take effect.

"My teaching of history tells me that all bad government, comes from too much government."
Thomas Jefferson
 
cobraboy

cobraboy

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Jul 24, 2004
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Like you couldn't see this coming.

I laugh at folks who think tax increases are the way to prosperity...
 
F

flyinroom

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Aug 26, 2012
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Yeah right....
I want to meet the guy/gal who stopped drinking beer because the price went up...
And I probably will, when pigs fly.
:classic:
 
cobraboy

cobraboy

Pro-Bono Demolition Hobbyist
Jul 24, 2004
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flyinroom said:
Yeah right....
I want to meet the guy/gal who stopped drinking beer because the price went up...
And I probably will, when pigs fly.
:classic:
Click to expand...
If sales are down 20% and the brewers are complaining to the gubmint, no doubt they went down.

Locals are the ones who consume most beer and they most have the resources as expats.
 
W

windeguy

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Jul 10, 2004
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flyinroom said:
Yeah right....
I want to meet the guy/gal who stopped drinking beer because the price went up...
And I probably will, when pigs fly.
:classic:
Click to expand...

The facts are hard not hard to understand. There is a 20% drop in consumption of beer after higher taxes on beer were implemented. Seems pretty obvious as to the cause for less beer being consumed. At least to me.
 
C

Castle

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Sep 1, 2012
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It's not that anybody stopped drinking, it's just that they drink less, and maybe less often.
 
D

dv8

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Sep 27, 2006
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the taxes will not go any lower. the only strategy is to come up with a new, cheaper product. look at ron makers: they waited until the last moment to put the prices up and they came up with cheaper range: smaller bottles, stuff made for a local market and so on.
 
drstock

drstock

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Oct 29, 2010
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"Sin Taxes" are common throughout the world. It's easy for governments to raise tax on booze, tobacco, gasoline etc. while appearing to have the people's interests at heart. People may cut down consumption while they get used to the new price, but they usually revert to old habits in time. Thus the government gets the additional revenue it was looking for.
 
K

Koreano

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Jan 18, 2012
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dv8 said:
i think quisqueya is cheaper than the rest...
Click to expand...

They only serve that beer in golf clubhouse in Santiago. I didn't drank many but it was pretty good. But after 3-4 hours of hacking anything cold will be good.
 
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dv8

Gold
Sep 27, 2006
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i like it more than presidente, frankly. maybe because it is the very last beer commercially made in DR that did not come from the corporate arse. all other beers are owned and made by the same company, ambev...
 
N

NotLurking

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Jul 21, 2003
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20% drop in beer consumption after the fiscal reform sounds about right. Just before the tax increase a jumbo Presidente retailed in the colmado for about RD$100 and now it costs RD$115. This is a 15% increase that forces a 20% reduction in consumption. People were able to buy 5 jumbos for RD$500 now for the same RD$500 they can only buy 4 jumbos or a 20% reduction in consumption.

NotLurking
 
W

william webster

Platinum
Jan 16, 2009
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windeguy said:
The facts are hard not hard to understand. There is a 20% drop in consumption of beer after higher taxes on beer were implemented. Seems pretty obvious as to the cause for less beer being consumed. At least to me.
Click to expand...

How is Bohemia doing... the lower priced beer?
 
K

kdolo

New member
Mar 9, 2009
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drstock said:
"Sin Taxes" are common throughout the world. It's easy for governments to raise tax on booze, tobacco, gasoline etc. while appearing to have the people's interests at heart. People may cut down consumption while they get used to the new price, but they usually revert to old habits in time. Thus the government gets the additional revenue it was looking for.
Click to expand...

gov't gets additional revenue if they can pluck the golden goose without killing it.

the average dominican has a very very tight budget - these taxes definitely will affect their discretionary spending and thus the revenue collected - not to mention the residual loss of jobs from less drinking, less people at bars, etc
 
Conchman

Conchman

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Jul 3, 2002
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The IMF, like any lender, will demand higher income and/or lower expenses, before lending any more money.

Government spending beyond its means, in order to win elections, is the culprit. Whether its here in the DR, or in the US.

Now the same hypocrites in politics are saying "well if we spend less, we will lose jobs." This is hogwash, because the jobs were created with borrowed money that the government couldn't afford, to begin with.
 
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