The Western Brewer Aug 1916
United States Consul Frank A. Henry of Puerto Plata, Dominican Republic, in a recent report says:
Beer is popular in the Dominican Republic. Consumption in the Puerto Plata consular district is more than 40 per cent of the total. During 1915 imports into its four ports were: Puerto Plata, $22,084; Sanchez, $19,239; Samana, $2,994; Monte Cristi, $1,694; total, 71,611 gallons, valued at $46,011.
There are no breweries in the country, so that all supplies have to be imported. Before the European war the greater part of the beer consumed came from Germany, although the United States had been furnishing small but annually increasing quantities during recent years . The situation is now entirely changed, and nearly all supplies are received from the United States. Light beers are preferred.
Prices at present are from $6 to $7 f.o.b. New York per barrel, containing 10 dozen 12-ounce bottles. The local selling price is from $15 to $18 per barrel, and a single bottle retails at 25 cents in the hotels and cafes. This high price, which naturally restricts consumption, is partly due to the import tariff and other taxes which are levied. According to paragraphs 1040 and 1041 of the Dominican customs tariff, beer, malt extract, and all similar beverages pay $6 per hectoliter (22.71 cents per gallon); when packed in bottles or receptacles other than wood, the rate is $8 per hectoliter (30.28 cents per gallon). There are also consumption taxes charged by the different municipalities.
Most of Imported Beer Is Bottled
The beer imported here is, with negligible exceptions, bottled. These bottles are packed 10 dozen in a barrel. The bottle is usually protected by straw, which is said to give better results than corrugated paper. Barrels should be firmly closed to prevent pilfering. As the customs duties are assessed by measurement, the style of packing would not affect these charges. Insurance of all kinds is desirable and is usually assumed by the exporter, who charges it in his price.
Shipments from the United States are all made from New York by steamers of the Clyde Steamship Co. Present rates on beer are 50 cents per 100 pounds or 20 cents per cubic foot, plus 20 per cent for the ports of Puerto Plata, Samana, and Sanchez, and plus 30 per cent for Monte Cristi. Steamships leave about every two weeks for Dominican ports.
Beer is imported by general merchants through commission houses in New York, as one of various lines of their regular business. In addition, many business houses have agencies for well- known and advertised brands of American beer. Some of these agents merely take orders, while in other instances large importing houses have exclusive agencies for the entire Republic, and import and distribute on their own account. Some of the large firms do considerable advertising in the local newspapers, and are liberally supplied with advertising material by the manufacturers. Names of some agents are printed on the labels, but usually this is not done. No particular color or style of label is necessary. According to paragraph 1162 of the Dominican customs tariff, lithographs, posters, calendars, and folders for advertising, having no commercial value and destined for free public distribution, are imported free of duty.
Credit Terms and Locations for Agencies
Credit terms usually vary from 30 to 60 days in this trade. Commissions differ according to circumstances, but in the case of agents who merely take orders, 2 per cent is sometimes given. Agencies are sometimes given for the entire Republic, and sometimes they are granted for the northern and southern halves of the Republic. In this consular district, Santiago and Puerto Plata are the principal towns, and would probably be the best locations for agencies, although there are other places of some commercial importance. In introducing a new brand, difficulty might be met with at first on account of the large number of brands already represented, but a good product, backed by energetic initial efforts, would no doubt be able to secure a foothold.
A list of business houses which, so far as is known, have not already established agencies, but would be interested in sales of American beer, may be obtained from the Bureau of Foreign and Domestic Commerce at Washington, D.C., or its district offices. Refer to file No. 78208.