Excessive Competition Is Detrimental For Beer Business

By Alberto Aldrete Valdez

Some say market is oversaturated!

Selling beer is no longer a good business in Puerto Penasco. Previous authorities allowed for the market to become saturated. Some wholesale beer business owners admit to the negligence – they asked not to be identified. There are an estimated 200 locations where residents can purchase the product. It’s no longer a good business, there are too many wholesale stores; what before was a good thing has become a bad thing, but a bad thing for everyone.

He said that he does not understand why so many wholesale stores were authorized in the past, or why the breweries allowed it to happen. He assumes that the mayors of previous administrations made a lot of money by authorizing them, but they never thought that they would obliterate an entire business that supported many families.

“Here in Puerto Penasco there are up to four wholesale stores in two blocks, even one in front of the other, and they barely make enough to live poorly,” said a former employee.

“Also the breweries own most of the wholesale stores, and those of us that work there get paid with a salary or by commission. However it is never enough, sales have gone down. It does not seem like it, but it is a tough job to be in charge of the store all day long.”

He points out that when supervisors complain about the low sales they are forgetting that there are too many wholesale stores. That makes sales go down, but they always earn money because they own the breweries. The consumption is always the same, but the amount sold is spread out over too many stores.

“Those of us bearing the brunt of the problem are the store managers. Sales are lower every day, and it keeps on getting worse.”

To top it all off, practically overnight several “convenience” stores spawned all over the city, but they are just wholesale stores with a different name. The way the locale works is slightly different, but it is the sale of beer that drives the business.

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