Rum price hike sends Ponche a Creme, black cake prices soaring

T’was the night before a Trini Christmas

and make no mistake,

Folks were excited

for ponche a creme and black cake

Alas! Some bakers expressed a deep fear

that ingredients had become oh so dear.

Since Dave's budget in October, he tacked on some taxes

that RUMped up Xmas treat prices right up to their maxes.

Increased costs placed a good few in a position

as to not enjoy many a Trini Christmas tradition.

Business Day spoke to businesses

Both big and small

Some said they increased black cake and ponche a creme prices

Others didn't make any at all.

Alcohol increases humbug Xmas prices

SINCE MINISTER of Finance Davendranath Tancoo announced a 100-per-cent increase in customs duties on rum and spirits – starting with local businesses – Trinidad and Tobago’s bar, beverage, entertainment and night-life industries have been reeling.

Angostura did announce a reduction in the price of alcohol for the remainder of the year, but bar, night club and restaurant owners still complained that sales have gone down significantly in bars.

On October 31, weeks after Tancoo announced the increase in duties for alcohol, Trotters group CEO Peter George Jr announced the closure of its San Fernando branch, citing a list of reasons including steep new taxes and hefty input costs.

The black cake and ponche a creme industries, bolstered by artisans and small business owners who work extra hard to maximise earnings for the brief Christmas season, have also felt the impact of the increase in prices, especially rum and brandy which are key ingredients in these two much loved Trini Christmas delights.

Dawn Ramkissoon-Ali, owner of Aurora Fine Delights, who specialises in ponche a creme and pastelles, is one of many small businesses taking a conscious decision to not make ponche a creme for sale this Christmas.

She told Business Day that, for her, the cost of making it went up by at least $40. She said she would have had no choice but to move the price from $150 a bottle to between $180 and $200.

“It would have just been too expensive to make. We would have had to ask our customers to pay higher prices. It just didn’t make sense,” she said.

“I use both White Oak and Forres Park Puncheon. The prices of both of these rums just skyrocketed. My customers asked if I was making it and I said even if I made it I would be working for free, so it is better I didn’t. They understood.”

Black cake too, was hit hard by the increase in the price of alcohol.

Amrika Singh, owner of Cake Zone, said her prices were also affected by the increase in the price of alcohol, prompting her to increase the price of her black cakes.

However, she said while she did increase the price, the temporary reduction in prices from Angostura lessened the blow.

“Well, there was an increase in alcohol but Angostura agreed to lower prices for December with White Oak and Forres Park Puncheon. So I would say there was a price increase due to the increase in alcohol prices but because of the provisions until the end of December, I didn’t increase it by any exorbitant cost.”

She said her cakes were increased from $150 for an 8-inch foil pan cake last year. This year it is $175.

She said while she didn’t make ponche a creme, her brother did. He also decided not to make any for sale though.

“He was already charging $175 for a bottle last year. Based on the flavour as well it was between $175 and $200 per 750 ml bottle, he said it was almost a 50 per cent increase in the cost. It would have been too expensive for him to make to sell.”

Shirley Roban, a micro-business owner who sells black cake and pepper sauce said she will increase the price of her black cakes from next year.

“Just before the increases came into effect, I bought my alcohol and started soaking my fruits,” she said. "I soak my fruits early, so I didn't get ketch with the increases.”

Kathy Collins, owner of Copa de Leche in Arima which does both black cake and ponche a creme said she resorted to improvising and compromising on alcohol brand in order to maintains a more competitive price.

“The price of rum really did affect the price of ponche a creme, since it is a key ingredient. We had to either try to get cheaper brands or not make any to sell.”

Instead of Angostura rums, Collins said she resorted to using alternative and cheaper brands of puncheon rum. She said she did the same with milk products. As for black cake, Collins, like Roban began soaking her fruits earlier in the year and was spared the new alcohol prices.

“The only thing I didn’t buy was the sherry brandy, which went up drastically,” she said.

Olatunde Celestin, owner Tunde’s Treats, who specialises in ponche a creme said his products – including ponche a creme, pastries with ponche a creme and all the different flavours and mixtures including ponche a creme would see an increase in prices.

“It just so happens that my prices were already due for an increase. It was something I was holding off, but when the price of alcohol increased, it was just something I couldn’t hold back on again.”

He said his ponche a creme prices went up from $150 to $180 per bottle.

Other pastries done by Tunde’s Treats such as a doughnut with a ponche a creme-cream cheese filling will also see an increase in price.

“We try to manage the prices because it is a situation where the cost of living itself has seen an increase. You don’t want to price yourself out, but at the same time you want to be able to provide a quality product which requires quality ingredients.

“We have a standardised recipe, so the quality is pretty much the same across the board. We use a formula to produce our ponche a creme and we've gotten a lot of positive feedback in terms of the quality – but being one of the more affordable ponche a creme products on the market is one of our key selling points. A lot of customers appreciate that.”

Not only rum went up

It wasn’t just the price of alcohol that affected the price of ponche of creme. The price of other inputs such as milk, eggs and condensed milk have also shot upward.

“Even stuff like the cost of bottles went up,” said Celestin. “While Angostura did absorb some of the increase in the price, that is just one input. Some of the condensed milk over the past five years increased from as low as $66 for a case, now it fluctuates between $80 for the case and can go as high as $93.

“There are other periods where other inputs would also fluctuate. The increase in alcohol is something that we would have to manage but there are other things we have to manage as well. We’re hoping that the balance of our inputs maintain their prices. We hope that we can continue at $180 for our ponche de creme.”

Artisans said while the price increase was noticeable among customers they were still given a lot of support, particularly from their regular and loyal customers.

Ramkissoon-Ali said while she will not be making ponche a creme next year as well, her pastelles and other treats remain heavily supported by her regular customers.

“With pastelles there wasn’t an increase in prices, but for sure ponche a creme will remain off the menu next year.

“I have new customers but about 85 per cent of our base are repeat customers. People are still making sure that they have quality food for Christmas. They need food. We are also based on tradition, so even if they order smaller amounts, we will still honour our commitment.”

“They (customers) were okay with the increase in price,” said Singh, “However, I think it was because of the quality of the cakes. It (the quality) doesn’t usually change because my ingredients don’t change. I try to stay consistent.

"These are my regular customers as well. I have had them for between three to four years. I also had new customers but my regular client base has carried me through.”

Celestin also said that despite the increase in price loyal customers continued to support.

“At $180 the cost is still good,” he said.

“It may be a little bit harder for people to purchase as many, but people have also been supportive of the price increases. I think people understand the fact that ponche a creme is a drink that contains alcohol and the increase in the price of this key ingredient was sharp.”