By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

BAHAMIAN juice drink manufacturers yesterday said they were still exploring ways to combat the 50 per cent tariff slash for rival imports, one telling Tribune Business: "It's not difficult to compete; it's impossible".

Mervin Sweeting Jr, president of Switcha, said: "The challenge now is that it is much more cheaper to purchase the imported products than it is to purchase ours. I wonder if people understand how significant this tariff rate has been on our market. It's not difficult to compete; it's impossible."

The Minnis administration slashed duty on imported fruit drinks to 30 per cent in the 2017-2018 Budget, having initially intended to eliminate the previous 60 per cent tariff entirely.

"Had they reduced tariffs along with Business Licenses, electricity costs and other taxes we could compete, but with no concessions added and reduced duty for foreign competitors, it doesn't bode well for us," said Mr Sweeting.

"The Bahamas is hostile towards our business model and industry, and that is a sad thing. We have to now think of ways to counteract what has happened. We have seen in the past entire industries wiped out by government policy, and I don't think that the Bahamas can afford more people losing their jobs."

Geoffrey Knowles, Aquapure's operations manager, told Tribune Business: "What we have done to counteract it is we have increased our marketing substantially on Tampico, and also on the water side. That's one thing that we have done to sort of counteract that.

"What it has shown us is that we are flat over the last three months. There has been no increase or decrease. Looking at the stores we normally sell to, when it comes to Sunny Delight their inventory of Sunny Delight is substantial over that period of time. We are going to continue our marketing efforts, and some new packing, to hopefully improve sales. We're not losing any ground but not gaining any."

Mr Knowles added: "There is concern. When you have a significant drop in duty there is concern. It has made the competition cheaper, and we are hoping that we don't have to match prices with them.

"We have completed installation of our equipment to the tune of just about $500,000 to bolster our Tampico line, and I am hoping that we can pay it off. We have got our fingers crossed."