Home' National Liquor News : NLN NOV 2016 Contents 16 | NOVEMBER 2016 NATIONAL LIQUOR NEWS
IBA OUTLINES NEW BUSINESS MODEL
Independent Brands Australia (IBA) has outlined plans to evolve its
Merchandise and Promotions business model, with the ultimate goal of being
stronger and more sustainable within the independent retail sector.
In an email issued to supplier partners, IBA explained that the primary
objective of this initiative is to streamline operations, gain efficiencies and
embed a structure that will support the long-term growth of the IBA model.
As Rod Pritchard, the General Manager, Merchandise for Australian
Liquor Marketers (ALM) explained to National Liquor News, the operational
changes are ultimately about ensuring a successful and sustainable
"The business model we are operating with has been in place since the
inception of IBA and ultimately the efficiencies that will derive from the
new model, while observing the strength of the current model are fairly
compelling," said Pritchard.
The changes to the model include aligning resources to a centralised
support office function and removing the duplication of administrative tasks
across states. What this means is that the company will be reallocating state-
based resources into a more centralised model based out of its head office in
Macquarie Park, Sydney.
State Promotions Managers will transition into new roles as IBA Business
Managers, and where currently there are state-based Promotional
Coordinators, those roles will be reallocated to the centralised hub at
"This is a culmination of 15 months of dialogue with retailers, with
suppliers, as well as internal stakeholders to identify where the opportunities
lie," said Pritchard.
"We've got a clear focus around what we are trying to achieve to ensure a
successful independent sector. A couple of the initiatives that we are focusing
on are definitely around streamlining our decision making and ultimately
being more efficient and effective with the resources that we actually have
around the country. Continuing to focus on the retailer engagement as the
starting point and the finishing point of everything we do."
While some retailers had expressed concerns about the impending
operational changes to, Pritchard assured that there would be no
repercussions to any of IBA's retail liquor brands.
"Nothing will be changing for any of our retailers," he explained.
"Internally we define success by a measure that would have our retailers
virtually not know that we have altered our operational model.
"Ultimately, the evolution of the model is absolutely focused on the
sustainability of the independent sector. 'Successful independents' is one
of the mantras of Metcash, so obviously that cascades for us into the ALM
and IBA space. We obviously need to be as efficient and work as smart as
we can, so what we've identified is an operational efficiency. There are some
roles impacted, but at the same time, we actually look to reallocate resources
into more potentially value adding tasks."
TO LAUNCH IPO
Australian online liquor retailer MyBottleShop.com.au is looking to take
the next step and be publicly listed on the Australian Stock Exchange.
The purely online retailer was established by Managing Director Steve
Rider in 2013 and reached almost $5 million in retail sales last year. The
company says that it can meet the increasing need for speciality products
as stocks a wide range as it doesn't have shelving restrictions.
Since its inception, MyBottleShop.com.au has gained more than
80,000 subscribers, processes more than 3500 purchases per month and
boasts over 3000 product lines at its warehouse in Sydney's Inner West.
Despite the online success, Rider said that he has no intention to move
into a bricks and mortar store and instead is focusing on setting up the
company for an initial public offering (IPO).
"There's no need for us to have traditional freestanding stores,"
Rider said. "With each home and business in Australia having at least
eight electronic devices, there are at least 36 million stores rendering
MyBottleShop's incredible range of products.
"Our focus is to continue to secure the online market and recognise
the consumer shift to online shopping as well as having plans to create an
IPO in the next three years."
To further utilise the online sphere, MyBottleShop.com.au is the first
major online Australian retailer to accept Bitcoin. Bitcoin is the first
decentralised peer-to-peer payment network that is powered by its users
with no central authority or middlemen.
"It's about time Australian retailers started adopting Bitcoin -- it's a
digital currency so it makes sense for a digital store like Mybottleshop to
take on Bitcoin. There are no fees for either party unless you want there
"I know initially there won't be large volumes of Bitcoin use, but as an
online leader, it's imperative that we embrace technology and give new
ways of doing things a go," added Rider.
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