Jamaican beverage makers warn CARICOM glass bottle tariff could raise prices

Jamaican beverage manufacturers are warning that a proposed CARICOM tariff on imported glass bottles could push up production costs and affect consumers, even as the measure is being considered as a boost for regional manufacturing.

TVJ News reported that CARICOM is weighing a 15% duty on glass bottles brought in from outside the region, following a finding that manufacturers within the bloc can supply more than 75% of regional demand. The proposal has drawn concern from the Jamaica Alcohol Beverages Association and other local industry players.

Dianne Ashton-Smith, chairman of the Jamaica Alcohol Beverages Association and head of corporate affairs at Red Stripe, said the sector is not opposing regional production, but wants governments and advocates to examine the plan more carefully. She said a theoretical ability to meet 75% of the market still leaves questions about the remaining demand, especially for micro, small and medium-sized businesses and companies that rely on specialised bottle types.

Industry stakeholders say bottles that cannot be sourced from regional suppliers would still have to be imported from outside CARICOM. If those imports attract the additional 15% charge, Ashton-Smith said manufacturers’ input costs would rise. She noted that while producers often try to absorb higher production expenses, they are not always able to do so, meaning some of the burden could be passed to shoppers through higher prices. She also warned that supply of popular products could be affected.

Supporters of the tariff argue that it could encourage stronger regional manufacturing, but Jamaican beverage interests say the likely effects on supply chains, business costs and consumer prices need fuller scrutiny before any decision is made.

As the discussion continues, Ashton-Smith also renewed an appeal for Jamaicans to return glass bottles more consistently to support supply. She said proper storage is important, noting that bottles left under cupboards or in garages can attract pests, including cockroaches. Consumers are being urged to store bottles carefully and return them to producers so products can remain available on shelves.