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Cerveceria Nacional Dominicana continues to lead sales in 2013. After the strategic alliance between the company and AmBev, the company now commands a de facto monopolistic volume share of 99% (from 88% in 2011). Presidente is by far the largest brand house, commanding a 63% volume share, two percentage points above its share in 2012. The company pricing strategy (i.e. to reduce the price gap between Bohemia/Brahma -low priced- and Presidente -mid priced-) is aimed towards increasing the company's profitability, and it should make Presidente's value share even higher in the next few years. As the share evolution demonstrates, the strategy is working, even in an economic slowdown year.
Over the forecast period, beer will continue to suffer contractions because of the five consecutive years of tax increases from 2013 until 2017. There are going to be years of increase in the three tax types (value added, specific, ad valorem), like the difficult 2013. In other years two tax types will increase (specific and ad valorem) in 2014 and 2015. Finally, in 2016 and 2017 only one tax type will increase -specific tax- which will finally converge between the two drink types (fermented and distilled alcoholic drinks) in 2017. For the first time the specific tax will not discriminate among types of alcoholic drinks. All these tax increases will further decline the volume each year, but not at the levels of 2013. Only 2018, with its combination of no tax increases and growing disposable income, will see volumes not decline.
Discover the latest market trends and uncover sources of future market growth for the Beer industry in Dominican Republic with research from Euromonitor's team of in-country analysts.
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