Food Consumption Patterns Part 2

99
Distributors and Credit
All distributors would request/require credit for new product so that they can promote the new
product. Distributors large and small said they would expect any producer of a new snack product
to advertise and provide samples/tastings to introduce the product to their customers. In Port-au-
Prince, this promotional/introductory period often involves the presence of a sales representative
of the company posted at the sales station of the warehouse to pitch the product to customers. In
this period, to minimize risk, distributors expect to sell on consignment, with the manufacturer
providing the product and receiving payment only for what sells. Only after seeing that the product
sells are they willing to commit to selling a set amount, or purchasing product outright for resale.
The penetration price point can only be raised slowly once a sales record is established.
Government, Import Duties, Sales Taxes and Licenses
If imported, peanut-based products face
significant post-production customs and sales
duties: a 5% of value customs verification fee,
3% to 20% of value duty (varying by product),
and 10% sales tax. If sourced and produced
locally post production only a 10% sales tax
applies.
For imports, shipping costs must also be factored
in. The cost of Miami to Port-au-Prince shipping,
handling and other related costs for a 20-foot
container is USD $1,200.
Photo 54: Distributor in Cape Haitian,
Extruded Corn Snacks out front
If producing locally, a prospective
manufacturer must present the Haitian
government with a study and documentation on all machinery and raw material. If approved, the
Haitian government charges no taxes on imported raw material, packaging material, or machinery,
and no income tax for up to 10 years.
Labeling, Size and Packaging
Legally the products must be traceable, they must be labeled and specify origin and nutritional
content. Distributors with their own brands--Bongu and Stanco—want their logos on the sachets.
All distributors expressed an interest in printed claim of high nutrition and, if possible/true, the
fact that the product is made of local materials (note however that Bongu has refused to sell peanut
butter).
Distributors recommended number of sachets per case are 100 sachets. Distributors uniformly said
that the larger quantities are more appealing to retailers, as higher volume sales made possible with
larger packing units helps reduce costs and maximize profits.