A new independent coalition known as the Retail Alcoholic Beverage Association formed against what its members deem a "monopolistic" takeover by Commonwealth Brewery Limited (CBL) in the alcoholic beverage industry in New Providence.

The association argued that there is a lack of competition in the market because of CBL's alleged attempt to increase its number of retail stores and sell at lower prices.

Heineken International became the sole owner of CBL and Burns House Limited (BHL) after purchasing all interests on May 17, 2010. Then, in July 2010, CBL became 100 percent owner of BHL.

Owner of Island Wines and Spirits Robert Nutt expressed his concerns on the matter during a press conference yesterday.

"Are we their customers or are we their competitors? That's the main question. They want our business and then they turn around and compete directly with us. They sell cheaper on certain items than we can buy it for. They have got promo money from all of the agencies they have. So they have all of that power. They seem to be able to operate anywhere they want.

"They open up three choice locations on Sunday. I can't open up on Sunday. I was told that my license would be taken away. But a billion-dollar foreign company could open and they are above the law. And that's what seems to be the problem," he said.

However, Sales Director of CBL Wendell Seymour said the company is willing to work with the association to address its concerns.

"We are actually surprised to hear about the discontent of some of our retailers and wholesale customers regarding the opening of additional 700 Wines And Spirits stores. We have had in the past as many as 90 stores and there are about 30 stores that we have today. On top of increasing the number of stores, we are currently upgrading the existing ones.

"We have widely partnered with our customers over the years helping them to grow their business for mutual gains," Seymour told Guardian Business yesterday.

He pointed out that he would like for the independent retailers and CBL to have a mutually beneficial relationship.

Seymour added, "We have no intentions of stopping our support to these valued partners. At the same time, our 4,000 Bahamian shareholders expect us to grow share value, improve operating efficiencies, product innovation, and new stores in strategic locations among other things allow us to do so. We are prepared to meet with the members with of this newly independent retailers association to see how we can be mutually beneficial to each other."

Still, other members of the association are worried about the future of the industry. One of those members is Brent Ferguson, owner of 'Bookie' Brent Liquors.

"We have been a business for a very long time. It is the independent retailers that sell to the consumers. This industry cannot work without the industry retailers. For that reason, the independent retailers ought to have a stake in the supply chain. Not that most go to the manufacturers or major suppliers, but some of that is trickled down to the independent retailer.

"In this industry, we are under attack by foreigners, whether it is indirect or direct through various influences. They are advocating only for certain brands. At the end of the day, it would be the Bahamians who won't get their fair share," said Ferguson.

Xian Smith, Guardian Business Reporter

Click here to read more at The Nassau Guardian