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REPORT ESTIMATES KAUFLAND’S AUSTRALIA GROWTH
A team of analysts at Morgan Stanley has published a report,
which details the potential for Kaufland’s growth in Australia.
With the German discount supermarket preparing to open
its first stores in Australia, the report predicts that up to 300
Kaufland stores could follow and that the retailer’s more flexible
approach could see it do better than Aldi in this market.
Morgan Stanley analysts Monique Rooney, Thomas Kierath
and John Lee compiled the report, which also included details
of why Kaufland is expanding in Australia and where some of
its stores could be built.
“Discounter disruption has only just begun in Australia,”
the report said. “The Australian supermarket industry is ripe
for further discounter disruption as Kaufland soon enters.
Very high labour costs, high store rentals, low competitive
intensity and high existing margin structures all enable another discounter in Australia.”
It added: “Store penetration differs by market in Europe, from Slovakia the most penetrated at 82k
people/store to Poland at 181k. Using these benchmarks Australia’s 24m people could theoretically support
133-295 Kaufland stores.”
Australia represents Kaufland’s first expansion outside of Europe and the analysts claim reasons for the
move include: Australia being a relatively high growth market; existing margin structures here are high
by global standards; discount penetration is low and that Kaufland has historically followed Aldi into new
markets with success.
With the closure of the Masters building stores, there are a number of big box retail spaces available to
Kaufland for its Australian expansion.
“Based on our understanding of the market and on precedents we estimate that Kaufland may be targeting
to open seven to 10 stores when it ‘launches’ in Australia in either late 2019 or early 2020. It is possible that
Kaufland has taken options to buy other sites that it will execute on over the coming 12 months.
“There is likely enough Big Box retailing space available in Australia for our Kaufland store rollout
forecasts to be realistic.”
CARLYLE EYES ACCOLADE
The Carlyle Group
has told National
Liquor News that it
is looking forward
after agreeing a
$1bn deal to buy
Accolade was previously owned by Champ
Private Equity, who had an 80 per cent stake
in the company and Constellation Brands, who
owned the other 20 per cent. The $1bn deal
sees Carlyle buy 100 per cent of Accolade and
a spokesperson said that Carlyle was happy to
have finalised the deal.
“We are very pleased to have finalised
an agreement with Champ to acquire 100
per cent of Accolade Wines,” Carlyle’s
“This is a company with great brands and
strong market positions, with multiple growth
opportunities, particularly in Asian markets.
“We look forward to supporting Accolade
Wines with Carlyle’s global resources, and
investing in the business and working with staff,
suppliers and customers to drive growth.”
The Carlyle Group describes itself as a ‘global
alternative asset manager’ with $195bn of assets
under management across ‘317 investment
vehicles’. Across its corporate private equity and
real asset segments, Carlyle has investment in
over 200 portfolio companies that employ more
than 650,000 people worldwide.
After making significant investment in
Accolade’s production facilities, with a new
bottling and warehousing facility due to open
in Berri, South Australia next year, Champ said
that it was pleased with the work it had done
in rejuvenating core brands.
“I know Sir James and Bill Hardy are very
pleased with the renewed trajectory that their
family’s heritage brand is taking and since
Accolade’s acquisition of Grant Burge, sales
have increased by more than 80 per cent,”
Champ CEO John Haddock said.
“Champ is proud to have been the
custodian of so many widely respected brands,
to have contributed to the great Australian
wine industry and to have added export value
to Australia. We are very pleased that a global
firm of such experience and capability as The
Carlyle Group will now take Accolade forward.”
CONSUMERS RESPONDING WELL TO ITALIAN ROSÉ
Liquor and food distributor, Combined Wines & Foods, has revealed that the
market has responded well to its recently introduced Italian rosé, as the pink
bloom continues in Australia.
Pasqua 11 Minutes Rosé comes from third generation Italian winemakers
Pasqua Vigneti e Cantine and Combined Wines’ General Manager, Joe
Molinari, said the company is very happy with the market response to
“Combined Wines are very excited that in the current climate of pink
Provence rosé, we have released to the market the Pasqua 11 Minutes Rosé
from Italy,” Molinari told National Liquor News.
“The market has responded to the wine enormously well in a short period of
time, having only been released in Australia in September 2017.
“Pasqua are one of the largest family wine producers in Italy, and have
always been in the forefront of production and marketing.”
The rosé is a blend created from noble Italian native varietals like Corvina
and Trebbiano di Lugana and varietals like Syrah and Carmenère. The name
11 Minutes refers to the duration of the skin contact, with the full load of
grapes being pressed very softly.
The winemaker said: “In this optimal length of time we extract the
most noble qualities of the grapes and obtain the slightly rosy shade that
characterise this wine. Once the precious must is created, it is cooled and transferred to a steel tank
where it remains for about 11 hours, the necessary time for the more solid parts to decant.”
The 12.5 per cent ABV wine comes in both 750ml and 1.5l bottles, with the winemaker saying that
the wine is ideal as an aperitif and as an accompaniment to the most delicate dishes.
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