Hot Drinks in Dominican Republic

COVID-19 impact on hot drinks

Like most countries, the Dominican Republic has been significantly impacted by the onset of the COVID-19 pandemic in 2020. The virus, and the government’s management of it, have affected sales of hot drinks in different ways.

COVID-19 country impact

Schools in the Dominican Republic proactively closed on 16 March. After declaring a state of emergency on 19 March, borders were closed including the land border with Haiti, and inbound sea and air arrivals were suspended at all ports, including cruises.

Company response

The pandemic’s main threat in 2020 has been to foodservice and foodservice-aligned distributors and producers – the shuttering of the industry in the first half of the year and the complete collapse in tourism have forced many smaller players out of business, and the marketplace has narrowed as a result. The country’s nascent premiumisation trend also looks set to face challenges in 2020-2021, as consumer price sensitivity sharpens in the wake of the economic impact of the virus.

Retailing shift

There has been limited shift in retailing in the Dominican Republic in 2020, largely because the sector is still comparatively underdeveloped. Shopping online is clearly a safer and more convenient way to buy hot drinks during the pandemic; however, there is no visible sales of these products via e-commerce.

Foodservice vs retail split

The impact of the virus on foodservice has been brutal. Foodservice outlets including cafés, bars and restaurants were closed for all business except takeaway and home delivery in mid-March, and although the government began to ease some elements of lockdown in June, there are regional variations and the industry has yet to return to normal.

What next for hot drinks?

The reopening of the economy is key to the recovery of hot drinks in the Dominican Republic, and in particular the return to business of the country’s workforce and the many cafés that underpin foodservice sales of coffee. However, the prospect of further regulation as infection rates begin to rise again at the end of 2020 is a strong possibility, although the vaccine may help restore consumer confidence.

Files are delivered directly into your account within a few minutes of purchase.