Food & Drink Opportunities

An Expert's View about Food , Beverages and Tobacco in the Dominican Republic

Last updated: 28 Feb 2011

The Dominican Republic has the second largest economy in the Caribbean and Central American region. It is an upper middle-income developing country primarily dependent on agriculture, trade, and services, especially tourism.

Sector briefing Food & Drink Opportunities in the Dominican Republic Why the Dominican Republic? The Dominican Republic has the second largest economy in the Caribbean and Central American region. It is an upper middle-income developing country primarily dependent on agriculture, trade, and services, especially tourism. Although the service sector has recently overtaken agriculture as the leading employer of Dominicans (due principally to growth in tourism and Free Trade Zones). Tourism accounts for more than $1 billion in annual earnings. The Dominican Republic still remains among the most popular investment and second home destinations for United States, Canada, and European Citizens. The country has successfully branded it itself as premier de ?According to the Dominican stination that is expected to continue growing. Creating a segment of new customers National Statistics Office requesting foreign products. (ONE) in 2007 Dominicans spent US$3.8 million in food Include this text as final paragraph: Find general information on the Dominican and non- alcoholic drinks and market conditions on UKTI?s website. The US$451 million in Alcoholic Doing Business Guide for the Dominican drinks and tobacco.? Republic gives an overview of Dominican Republic?s economy, business culture, potential opportunities and an introduction to other relevant issue. UK Trade & Investment Sector briefing: Food & Drink opportunities in the Dominican Republic Opportunities supermarkets, and about five percent by wholesalers. However, this is the market Changes to segment through which imported products eating habits in a country of over 9 mi reach the middle and upper classes, the target llion, rising living standards and the spread o market of most exporters. f large US style supermarkets have led to an increase in the import of foreign foods. The US, France It is estimated that about 45 percent of the , Spain are doing well in this sector as are total food and drink consumed in the country is some British companies. imported. About 35 percent of the imported Oppor consumer-ready products are from the United tunities are there for more British compan States. ies to enter an increasingly profitable marke t. This is particularly true now that UK producers stand In the Dominican Republic, the general trend in to benefit from the Economic Par distribution channels has been to reduce the tnership Agreement which means reduction role of intermediaries. Many importers and in tariffs on industrial goods, which include a number local producers are distributing their products of processed foods, have been e directly to retailers. The importation and liminated since the beginning of 2008. Oppor distribution of processed food and beverage tunities exist both for investing in the re products is carried out by both independent tail sector and for selling directly to the marke importers/distributors, who are the main t. players for this sector, and through direct Regard importation by supermarkets. The large ing the food industry, the ingredients segmen supermarket chains are importing directly a t is one of the most promising for expor basic line of food products, which they handle ters. The niche areas for imported food & dr exclusively. For example, Grupo CCN ink items are premium international branded products as we (Supermercados Nacional y la Despensa) ll as speciality food and drink products carries the private label brands from . The key areas of opportunity for UK compan Supervalu, such as Flovorite, Nutri Plan, Home ies are the following: Best, and Shoppers Value. Supermercados ? Bravo imports a basic line of products from Ingredients ? IGA. Grupo Ramos (Supermercados Pola y Organic products ? La Sirena) has the exclusive representation Nutritional and vitamins enriched processed for Shurefine and Valuetime. In addition, Grupo products (functional food) ? Ramos has First Class, which is its own private Diet & light range of products ? label brand. These product lines are used in Ready-to-drink fruit juices ? much the same way as store brands to provide Dairy product (cheese, yogurts, etc) ? a price competitive line of basic products to Preserves ? customers. Gourmet products ? Frozen Food ? If you have any questions on the opportunities Sweets ? above, contact the UKTI contacts named in this Meat and Deli products report. Business opportunities aimed The Dominican Republic is becoming specifically at UK companies are added daily to increasingly dependent on imports of UKTI?s website. These leads are sourced by our some products. staff overseas in British Embassies, High Commissions and Consulates, across all sectors Characteristics of the Market and in over 100 markets. The Advantages and Challenges in the food and grocery sector represents the mos Dominican Market t significant potential in the Dominican ma rket, as consumer spending is highest on Some of the advantages and challenges facing food. British exporters in the Dominican market are Acco the following: rding to the Dominican National Statistics O ffice (ONE), over 70 percent of retail food p Advantages roducts in the Dominican Republic are sold through the traditional system of minimarkets called 1) The supermarket sector is well ?Colmados?, 25 percent through modern developed and the number of UK Trade & Investment Sector briefing: Food & Drink opportunities in the Dominican Republic supermarkets has grown nationwide, Major events and activities providing greater market penetration for most imported food products. Find full details of all events in this 2) Dominicans are greatly influenced by country and sector on the UKTI website. foreign cultures and have a positive New export events are added daily to the site perception of their products. and you can register to be alerted to them on a 3) The Economic Partnership Agreement, daily, weekly or monthly basis increases the competitiveness of British products 4) UKTI?s Tradeshow Access Programme (TAP) The Dominican Custom Service uses the WTO provides grant support for eligible Small & -approved method of customs valuat Medium Sized Enterprises (SME's) to attend ion, which requires that duties be app trade shows overseas. Find out more about lied to actual invoice prices of UKTI support for attendance at overseas imported goods, rather than average or calcu events lated price for imported goods. 5) The economy is stable and with a promising outlook. Challenges 1) The local Dominican food industry is becoming more efficient and more competitive, as it integrates new technology and machinery into its production processes. 2) Globalization and the influence of the mass media have given Dominicans access to other cultures, e.g., USA, Asia, and South America. These different cultures influence consumption habits here and the demand for foods from those countries. 3) The Dominican Republic has a free trade agreement (DR-CAFT) with the U.S. benefiting their export. 4) In the Dominican Republic, there are significant tariff and non-tariff barriers for food imports. You can be alerted to business opportunities on a regular basis by registering on the UKTI website. Find out more on UKTI?s business opportunities service on the UKTI website UK Trade & Investment Sector briefing: Food & Drink opportunities in the Dominican Republic UKTI contacts Leonora Dipp Trade & Investment Officer British Embassy Santo Domingo Tel: (0086 10) 5192 0000 Email: Claudia Fulgencio Trade & Investment Assistant British Embassy Santo Domingo Tel: (0086 10) 5192 0000 Email: UK Trade & Investment Sector briefing: Food & Drink opportunities in the Dominican Republic Next steps - How UKTI can help ? Arranging appointments ? Organise seminars or other events for British companies wishing to develop their you to meet contacts and promote your business in the Dominican market are advised company in the Chinese market to undertake as much market research and planning as possible in the UK. This work is available via our Overseas Market UK Introduction Service (OMIS) a chargeable TI?s team in Santo Domingo, with its wide service which assists British-based companies local knowledge and experience, can provide a wishing to enter or expand their business in range of services to British-based companies wi overseas markets. shing to grow their business in global ma rkets. This can include: To find out more about commissioning this Th work, or accessing other UKTI services and is can include: specialist advice, please visit the UKTI website ? Provision of market information to find contact details for your local UKTI ? Validated lists of agents/distributors office. ? Key market players or potential customers in the Chinese market ? Establishment of interest of such contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Food & Drink opportunities in the Dominican Republic
Posted: 24 February 2011, last updated 28 February 2011

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