Rtds/High-Strength Premixes in Dominican Republic

PROSPECTS

Category growth slows in 2017

In 2017, RTDs/high-strength premixes continued to record solid total volume growth. The relatively high prices of these products, coupled with cheaper alternatives in other categories (eg rum), however, continued to impact consumption, with growth being slightly slower than that seen the previous year.

Wine-based RTDs remains flat

Wine-based RTDs remained flat in total volume terms in 2017. The two best-selling brands, Sangria Gitano and Don Simón Sangría, accounted for more than one half of total volume sales in the category.

Innovation is needed

As in 2016, RTDs/high-strength premixes did not see any new products launched in 2017, with the category remaining limited to a few brands with relatively high unit prices. While international companies are able to capitalise on brand recognition and compete effectively thanks to their considerable resources, additional innovation is needed to reinvigorate the category.

COMPETITIVE LANDSCAPE

Diageo leads the category

Diageo continued to lead RTDs/high-strength premixes in 2017 thanks to its spirit-based Smirnoff Ice brand, which accounted for close to one half of the wider category’s overall volume sales. Within spirit-based RTDs, Smirnoff Ice commanded the vast majority of volume sales.

Bacardi dominates high-strength premixes

In 2017, Bacardi Dominicana continued to lead high-strength premixes thanks to its flagship Alize brand, which accounted for more than three quarters of total volume sales. Despite the strength of Alize, the product tends to have a unit price which is similar to other alcoholic drinks, while its distribution is also somewhat limited in the country.

Private label remains absent from RTDs/high-strength premixes

In 2017, there were no private label products present in RTDs/high-strength premixes. However, given the relatively high unit prices of most products within the category, private label participation could be a way to introduce them to more consumers and thereby increase awareness.

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