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White label branding is big hurdle for struggling Dominican brands

It’s very difficult being a consumer brand manufacturer in the Dominican Republic. Outside of the labor and tax obligations, local industry that focuses on the consumer market has been impacted by the decision of large supermarket chains in the past decade to embrace the white labeling model. The contracts, depending on the supermarket chain, may even impede the brands from selling to other supermarkets, or selling their own brand in the same store.

The argument behind the white label model is that it enables the supermarket to offer consumers lower prices. But the question is whether it is sustainable for the manufacturer, that in the short and medium term seems to be the biggest loser despite being the one that has risked the most.

There you have the white labels of Lider (Nacional), Wala (Grupo Ramos – La Sirena), Bravo (Bravo) as the leaders in this area.

It was already sufficiently bad that the supermarkets wanted the brands to wait 90 days or more to get paid for what they had supplied. Now, it is very difficult for a company/brand to get into one of the mega supermarket chains if the manufacturer does not accede to the white label conditions. Originally, the supemarket had promised to put the manufacturer’s brand side by side with the white label product, but now it seems the chains are exercising their weight and now for most local brands it is very difficult to enter the market.

For his “Felicitaciones” podcast on Sunday, 15 March 2026, marketing specialist Freddy Ortiz shared insights into the would-be advantages, mentioning that on the positive side the brands are motivated to innovate to offer something better for their own brand. But the sustainability of the brands is at risk, as profit margins are already thin in many products that do not have elastic prices now that supermarket chains are closing doors to the producers selling their own branded products in the stores.

Recently, several journalists came to the forefront to defend one of the old-time brands, the bread manufacturing Lumijor that reported a clash with Supermercados Bravo. But that story is just one of untold stories as manufacturers clash with the chains and have to suffer in silence as brutal capitalism takes it all.

Recently, even the Dominican Association of Industries (AIRD) went to bat for the brands, complaining that the white labels do not meet government product registration requirements. The question remains. If the white label continue to dominate, will Dominican consumer goods manufacturers be wiped out? And then, will the DR have to depend on imports for its consumer goods? Or will the supermarkets have to expand their already growing manufacturer base?

Follow the story:
Conflict Lumijor and Supermercados Bravo
Linea Blanco – Las Felicitaciones con Freddy Ortiz Minutes 20:20
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CDN
El Dia

16 March 2026