As T&T buckles under the weight of a global recession, many local consumers are searching in vain for low cost Guyanese blended rum for the Christmas season. But checks by the T&T Guardian has revealed that brands such as XM, Xtra White and Xtra Mature rums, which sell as low as $50 a bottle, were no longer available on the market. Sources said since November, the Guyanese rum giant Banks DIH, stopped supplying these rum brands to Trinidad, leaving some retailers and wholesalers in a quandry.
Allegations have surfaced that a local supplier of raw materials to Banks DIH, threatened to withhold their raw materials if the Guyanese company continued to export the cheap rums to main distributor, Trinidad Import and Export Company Ltd. Past president of the Supermarkets Association and managing director of Maharaj West Side Supermarket, Kumar Maharaj, confirmed knowledge of the allegation.He called on Government to investigate and prevent monopolistic strangulation of free trade, saying that one company was attempting to boost its profits by restricting fair competition.
Maharaj explained that he spent $250,000 in advertising to attract XM, Xtra White and Xtra Mature rum sales for the season, promising to sell two bottles of XM rum for $89.99. He explained an order of 1,500 cases was placed in October but in November, they were advised it could not be supplied. "After two months of negotiating with Trinidad Import and Export Company, we were told the Banks DIH will not be supplying the rums," Maharaj said. He noted that setback had placed his company in an embarrassing position with the public because it could not fulfil its advertised promise of selling two bottles of XM rum for $89.99.
"People think we are liars. We spend so much money to advertise and now we cannot fulfil," Maharaj said.
"We try to make cheap groceries available to the poor man that is why we have 133 items on a special. We need to have this item brought back to our shelves," Maharaj said. Amar Marajh, of Amar Shopping Mart, called on Government to investigate why Trinidad Import and Export Company was being victimised. He said it appeared a certain conglomerate was attempting to strangle fair and free competition. "In the end it is the customers who will suffer. People will have no choice but to buy the expensive rum. This will lead to further chaos in the market," Marajh said.
Trinidad Import & Export responds
Contacted for comment, general manager of Sales and Operations from Trinidad Import & Export Company Ltd, Antar Baksh, confirmed the ban on the importation of the rums would have a negative effect on his company. Asked to explain why they could no longer supply the rums, Baksh said: "We have been advised by the chairman of Banks DIH that they can no longer supply the Trinidad market with their rums, namely XM, Xtra White and Xtra Mature rums, as their company's very survival has been threatened by (named called)."
He added: "For quite some time Banks DIH (Guyana) has been sourcing bulk rum (as raw materials) to use in its blends. In November 2010, just as Banks DIH was about to ship our final orders for this year, we received a telephone call from Banks DIH stating us that they would no longer be allowed to supply us with rum." "They went on to explain that (name called) had placed a call and made it quite clear that (name called) would hold back on raw material to Banks DIH as long as Banks DIH continued to supply their blended rums to Trinidad.
"It was further stated that this was an initiative to ensure that (name called) is the preferred rum in Trinidad."
Baksh explained: "Banks DIH told us that what they supply to Trinidad represents less than five per cent of their annual production. If (name called) were to carry through with their threat to withhold the raw materials it would cripple their organisation as they are currently the leader in rum sales in Guyana. What makes it all worse is that it is the Christmas season, the time of year with the highest alcohol sales." As it stands, Baksh said his company's annual rum sales are only a drop in the bucket when compared to (name called)."
He explained that there are other low-priced imported rums in the Trinidad market which continue to provide competition to this company. "We are of the opinion that our Company has been unfairly targeted by (name called). It is unfortunate that our supplies have been cut off in this manner. "Our company has suffered great losses as a result of this and our staff has been negatively impacted during the Christmas period, which is known to be the busiest time of the year.
Most importantly, our consumers have been robbed of the right to choose what they want to consume," Baksh said. He called on the Minster of Finance Winston Dookeran and Minister of Trade and Industry to investigate the matter. Neither could be reached for comment.