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IGA LIQUOR TO EXIT WESTERN AUSTRALIA
It has been revealed that the IGA
Liquor brand will be removed from
the Western Australian market. As a
result, all 24 IGA Liquor stores will
be converted to Cellarbrations.
A spokesperson for Australian
Liquor Marketers (ALM) confirmed
the move, saying it will help to
strengthen Independent Brands
Australia's presence in WA.
IBA is the second largest retail
group in Australia, with over 2500
members operating under the
Cellarbrations, The Bottle-O, IGA
Liquor and Duncan's retail banners.
"From our perspective in terms
of the brand exiting that market
it is purely as a result of the strength of that brand and we're actually converting those IGA Liquor stores to
Cellarbrations. From our view it is strengthening the Cellarbrations brand and growing our offer in that market. So
while the brand itself won't exist, we will still have the footprint from an IBA perspective."
When asked if the move would have any repercussions to existing Cellarbrations stores, the spokesperson said:
"Not at this stage. I think one of the reasons why we have chosen this route is because of the minimal impact it will
have on the existing footprint, so we don't envisage there being clashes at this point."
DrinkWise has announced a
partnership with ridesharing
service, Uber, to provide an
extension to the internationally
acclaimed How to Drink
The partnership will
commence in Sydney, and
coincides with the launch of
new Uber data highlighting
how access to safe and reliable
rides has helped hundreds of
thousands of Sydneysiders make
safer, smarter choices when
heading home after a night out.
Drink driving remains an
ongoing concern in Australia,
with hundreds of people killed
in car crashes involving a drunk
driver every year. Most alcohol
related incidents happen late
at night, on weekends, when
transport options are limited.
A recent study by Temple
University, in California, found
that cities where Uber operates
have 3.6 to 5.6 per cent fewer
drink driving deaths than cities
without access to ridesharing.
DrinkWise CEO, John Scott,
said: "Ridesharing plays an
important role in ensuring
people get home safely, and
this partnership reinforces our
position as an organisation
committed to sensible and
practical approaches that
reduce harm from excessive
consumption of alcohol by
reinforcing the importance
of planning your night out in
partnership provides another
example of the way the How to
Drink Properly campaign has
innovatively sought to promote
a message of moderation and
responsible drinking with
METCASH RETURNS TO PROFIT AS SALES INCREASE
Metcash Limited has released its results
for the financial year ended 30 April 2016,
with the group generating sales revenue of
$13.5 billion, up 1.3 per cent on the prior
year's comparative period.
Metcash also reported a profit after tax
(including discounted operations) of $216.5
million, which is up on the $384.2m loss the
group reported last year.
Group CEO, Ian Morrice, said: "The
group has completed the second year of its
transformation plan and we have made significant progress. Key supermarket initiatives are delivering results
and the liquor and hardware businesses continue to build momentum. The Group is focused on supporting
independent retailers to ensure they are well positioned to deliver the 'Best Store in Town' for their customers.
"The strong focus on capital and cash management has delivered a significant reduction in debt, which
positions the group well to deliver its transformation initiatives as well as invest in growth opportunities.
"This financial strength also underpins the group's intention to recommence half yearly dividend payments
with effect from the FY17 final dividend, subject to capital requirements."
Metcash's liquor business increased its total sales by 3.7 per cent to $3.2bn, up from $3.1bn the previous
year, which the group said was as a result of the strong performance of the IBA network and the "continued
conversion of customers to our banner group". Sales through the IBA bannered network increased by 13 per
cent on the previous year.
The liquor group's earnings before interest and tax also increased, up by 7.8 per cent to $62.1m from last
year's $57.6m, which the group said reflected the conversion of stores to the IBA bannered network and a
strong focus on cost control.
In the financial year Metcash said that it had invested in its bannered network, with approximately 85
stores being refreshed and 220 cool rooms being upgraded.
In terms of the outlook the group said that it expects "further consolidation and positive momentum" in
its liquor business, however the group added that its food and grocery business "continues to face headwinds
from competition, deflation and a rising cost base".
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