The Dominican Republic: Wholesale and retail traders criticize platform used by CND to distribute and market its beer

Wholesale and retail traders criticize the Bees platform used by Cervecería Nacional Dominicana (CND) to distribute and market its own products as they claim it is monopolistic and creates unfair competition due to abuse of dominant market position, the Dominican Today reported on April 21.

On the other hand, José Infante, general director of Bees RD, when asked about this conflict, explains that they are an inclusive platform for all businesses that wish to enter and do not seek to compete for wholesale market shares.

He explained that CND is a supplier of Abejas Logistic Group, with whom they have an alliance for the distribution and delivery of the products marketed on their Bees platform.

“Our customers enter the platform any day and at any time, and they have the freedom to choose the products they want and need. Our platform has a diversified offer, which includes multiple categories of products such as canned goods, juices, milk, wines, spirits, and beers from other manufacturers to which our clients have quick and agile access,” he explained.

However, the president of the National Council of Commerce in Provisions (CNCP), Tomás Marcano, stated that this platform Bees not only distributes and markets Cervecería products but also other mass consumption products, becoming a warehouseman and usurping the functions of the wholesale sector, and putting at risk thousands of micro, small and medium businesses nationwide.

He stressed that merchants are forced to buy beers; they must also purchase other products that are also distributed by the platform; what they understand is their strength to dominate the market.

“We are not opposed to technology sales platforms. But when handling all the sales of Brewery out there, they use it as a strategy that if you do not buy my other products of mass consumption that are not typical of Brewery, then I will not sell you a beer. And this affects the wholesale trade a lot. It is a way of being dominant in the sector,” he expressed.

He argued that the role of wholesalers within the distribution chain is also boycotted since Bees is offering retailers goods at prices well below their actual cost, which constitutes illegality.

Infante highlighted that Bees is a comprehensive distribution structure, open to all businesses, where they provide their partners and clients with more efficient logistics services, with a more controlled cost scheme.

“Customers continue to have all the freedom to choose the channels where they want to buy the products for their stores. We do not want to displace anyone if we do not offer a differentiated value proposition, focused on satisfying new customer needs,” Infante explained.

Marcano alleges that even the shortage of Light Beer and Jumbo in the market is due to hoarding from this platform since it also has warehouses.

In this regard, Infante, general director of Bees RD, recalled that as is public knowledge, for some months, Cervecería has shown a decrease in the availability of its products due to the shortage of bottles caused by the restrictions due to the COVID-19 pandemic that forced regional glass companies to close their production furnaces, reducing their supply.

Bees is a global e-commerce platform, represented by Abejas Logistics Group in the DR, created to offer new forms of support to its business partners in their growth, putting at their disposal a world-class digital experience. The company, which has a presence in other countries, has the purpose of satisfying different needs of its clients, facilitating the development of their businesses through a more efficient and simplified platform.

22 April, 2021