The Agostini Group will not apologise for the success of its businesses, its chief executive officer Barry Davis has said.
Davis described the company’s evolution from a small family enterprise into a large, diversified regional group, marking 100 years in operation, as a story of resilience, creativity, and hard work.
He made the statement while addressing shareholders at the 82nd Annual General Meeting of Agostini Ltd, which was held on Friday at the Port of Spain Ballroom of the Hyatt Regency Hotel, Wrightson Road, Port of Spain.
“Over the past few months, there have been significant public discussions about the pharmaceutical industry in Trinidad and Tobago. Allegations of monopoly have been mentioned regarding our distribution company, Aventa Trinidad. Firstly, for a monopoly to exist, there must be a single player in the market.
“In Trinidad and Tobago, there are more than 70 registered distributors supplying medicines, which is a clear indicator of competition within the marketplace. No monopoly exists in the pharmaceutical market in Trinidad and Tobago,” Davis said.
“Further, it has been alleged that Aventa has more than 70% market share of the pharmaceutical distribution trade — we do not know where that number comes from, or how it was calculated… and while we strongly disagree with the market share attributed to our company, what we can we say is that we are a large player in the market,” he said.
Davis said that over the past 130 years, Aventa Trinidad has built a strong record of serving customers, partnering reliably with suppliers, providing a rewarding work environment for employees, and acting as a responsible corporate citizen in Trinidad and Tobago.
“As a result of these efforts, we have had our share of success and have grown our market share. We see no reason to apologise for doing so and strongly believe that individuals and businesses deserve the rewards that come with diligence and hard work,” Davis said.
“Over the years, drug manufacturers have continuously introduced stringent requirements and new standards for the handling and distribution of their products — and understandably so given the sensitivity and nature of pharmaceuticals. To remain a provider of choice for suppliers, meet market demands, and ensure that citizens across Trinidad and Tobago have access to critical and essential medications, Aventa Trinidad has substantially invested in its operations and will continue to do so.
“We will also continue to support all efforts that strengthen trust and accountability, and we will leverage our size to offer the lowest possible price to our customers. We are a responsible corporate citizen and take the job of providing lifesaving medications to the people of Trinidad and Tobago very seriously,” he said.
Dominance of
‘big box’ pharmacies
Davis said the trend of people shopping at larger pharmacies is not unique to this country.
“Those of you who have been to the US know about CVS’s and Walgreens’ leadership positions; in the UK, the same with Boots and Superdrug; and the same is true of large players in the Central and South American markets. While smaller pharmacies continue to play a critical role in smaller communities, high streets and niche markets, larger ‘big box’ pharmacies have become more dominant globally.
“In Trinidad and Tobago the players with larger format stores would be Pennywise, SuperPharm, Starlite, Kappa and a few others. The convenience of a wider variety of products and longer opening hours are some of the factors that have facilitated the growth of the larger pharmacy chains,” Davis said.
Davis said SuperPharm has invested significantly in its stores to provide an inviting and welcoming environment for its customers.
“In addition, our stores provide ample parking, convenient opening hours, a wide variety of products and competitive pricing. Our business model has resonated with consumers and as a result we have enjoyed a level of success. Again, we will not apologise for this,” he said.
“Whatever success Aventa Trinidad and SuperPharm — and for that matter, any of our businesses — have enjoyed over the years is 100% as a result of offering excellent customer service, the hard work, dedication and diligence of our employees, being reliable and innovative partners to our suppliers and providers, and prudent capital allocation. We see no reason to be defensive about this and we certainly will not be apologetic,” Davis said.
Davis’ statements defending Agostini come amid concerns over Aventa’s position in the pharmaceutical market.
President of the Private Pharmaceutical Retail Business Association (PPRBA) Glenwayne Suchit said a market analysis commissioned by the group found that a single distributor controls roughly 74% of Trinidad and Tobago’s private pharmaceutical market.
Suchit added that the PPRBA initiated and funded the study after more than two years of urging the Trinidad and Tobago Fair Trading Commission (TTFTC) to intervene.
The TTFTC recently faced criticism during Parliament’s Public Administration and Appropriations Commission (PAAC) inquiry over its failure to investigate the association’s claims of market dominance.
The market analysis has been submitted to the PAAC in its ongoing enquiry.
However, Dr Taimoon Stewart, a competition law consultant and adjunct lecturer at the Faculty of Law, Cave Hill Campus, The University of the West Indies, told Express Business that market dominance alone does not constitute unlawful conduct, adding that claims of monopolistic behaviour require far more rigorous analysis.
“Having a dominant position or monopoly in a market is not illegal. You can have 100% of the market. That is what the law says,” she said, noting that the Trinidad and Tobago Fair Trading Act mirrors the United States approach, where monopoly is understood as dominance.
She stressed that dominance only becomes an issue where there is abuse, and even then, the assessment must be narrowly defined. “The law is only concerned with engaging anti-competitive behaviour if you have a dominant position.”
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