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

A significant increase in alcohol duties has cast a shadow over Trinidad and Tobago’s holiday season, severely impacting the production and pricing of traditional Christmas delicacies. Finance Minister Davendranath Tancoo’s October announcement of a 100% customs duty hike on rum and spirits has created ripple effects throughout the beverage and culinary industries.

The controversial tax policy has particularly affected two beloved seasonal specialties: black cake and ponche a creme. These alcohol-dependent treats have become substantially more expensive to produce, forcing artisans and small businesses to make difficult decisions. Dawn Ramkissoon-Ali, proprietor of Aurora Fine Delights, exemplifies this trend, choosing to completely withdraw ponche a creme from her seasonal offerings rather than impose dramatically higher prices on customers.

Industry-wide adaptation strategies have emerged in response to the economic pressure. Some enterprises, like Cake Zone operated by Amrika Singh, implemented moderate price increases while leveraging temporary price reductions from Angostura Holdings Limited. Others employed creative workarounds—Kathy Collins of Copa de Leche resorted to alternative rum brands, while Shirley Roban utilized pre-tax alcohol purchases through advanced fruit soaking.

The cost escalation extends beyond alcohol inputs. Producers report concurrent price increases in essential ingredients including dairy products, eggs, and even packaging materials. Olatunde Celestin of Tunde’s Treats noted that condensed milk prices have risen approximately 38% over five years, compounding the financial challenges.

Despite these economic headwinds, consumer loyalty has remained remarkably resilient. Established customer bases have demonstrated understanding and continued support, prioritizing quality and tradition over moderate price increases. This consumer dedication has provided crucial stability for small businesses navigating the challenging economic landscape while maintaining Trinidad’s cherished Christmas culinary traditions.