Home' National Liquor News : NLN SEPT 2016 Contents 18 | SEPTEMBER 2016 NATIONAL LIQUOR NEWS
Woolworths Limited published
its annual results last month and
although it was a disappointing
result for the group, for the first
time Endeavour Drinks Group was
reported separately and it offered a
Martin Smith, managing director
of Endeavour Drinks Group, spoke
at the results presentation and said:
"Our sales growth at 4.7 per cent
outstripped the market growth so we
felt we did well on the sales side of
things. Our EBIT growth was three
per cent, there were bonuses paid
this year, which did influence the
comparison of EBIT this year with
Woolworths also reported that Dan
Murphy's "delivered another year
of strong total and comparable sales
growth with 11 net new stores opened
during the year". In terms of BWS the
group said that "BWS also reported
positive comparable sales growth with
an improving trend in the second half
as we renewed our focus on value. We
opened 56 new BWS stores in FY16
and closed 24 stores".
For Wesfarmers the year saw an
'important milestone' in its Coles
Liquor business transformation.
Wesfarmers' managing director
Richard Goyder said: "Food and
Liquor revenue grew to $1780m,
driven by improvements in value,
quality and service. The ongoing
simplification of end-to-end
processes across the business has
supported continued investment
in these areas, while further
improvements in Coles' fresh offer
resulted in increased transaction
volumes and basket size."
He added: "The Coles Liquor
transformation achieved an
important milestone, with positive
comparable sales growth reported
for the year, reflecting investments
made in price, range and the
In terms of its stores Wesfarmers
reported that it has opened two
and closed five 1st Choice stores
with a total now of 97; the
group closed one and opened three
Vintage Cellars for a total of 81
stores and opened 32 and closed
24 Liquorland shops for a total
Josh Chambers has opened the first store of what will be a mini group within the Chambers Cellars banner, called
Wine with Josh.
The store, which is located at McMahons Point in Sydney, includes a premium product offering with a strong
focus on boutique and international wines, all selected by Chambers himself.
Chambers told National Liquor News, that the idea is to regain the essence of "what a wine shop used to be".
He said: "I want to roll out a heap of tastings with suppliers that have cool wines and are just a bit out of the
norm. The biggest thing is to bring back the romance of wine and take the focus away from product price."
Chambers said that the Wine with Josh concept was initially only going to be rolled out in stores that he personally
opened, but now that might extend to other Chambers Cellars stores which fit the model.
The Wine with Josh model is suited to up-market, high density, well-travelled, cultural areas, and Chambers
already has a few more locations in mind. "Definitely by next year we will have one or two more," he said.
"In these kinds of areas we can concentrate on a cool range for people who have travelled and they know their
imported wines, so that's what I am going to focus on. Stepping away from the masses and being more boutique.
"The direction is a full range of unique products across all categories, so whether that be beer, wine or spirits it
will be unique."
Chambers said the idea really clicked over the last 12 months.
"It's always been in the back of my mind. Wine is my passion and I really wanted to do something more specific
in the wine area and it kind of just clicked in these last 12 months. I knew what I wanted and then it just decided
that I should do my own store as a sub-banner of Chambers Cellars."
ALLEN DE COSTA HIGHLIGHTS ILG'S STRONG YEAR
After announcing increased sales and record profits last year, things keep on
improving for ILG.
Speaking at the group's race day at Hawkesbury last month, ILG's CEO
Allen De Costa said that the business was growing and that its expansion
into Far North Queensland was also proving successful.
"We grew the business by $48m or 15 per cent but what was actually
great is that bottom line profit grew by 30 per cent or about $3.6m," De
Costa told race day guests.
"But for our existing membership base, we actually improved the member
benefits by rebates or money into sites by a further 10-15 per cent. So the
Co-op is nice and strong, we're just under $400m in sales which is nearly
double sales in the last four years."
He added: "Townsville is absolutely fantastic, we've got annualised sales up at Townsville of about $25m
and we've only been up there for four or five months. We're only about three or four months away from a
break even stage there."
The warehouse in Townsville was purchased last year, in order to help ILG service the area from
Rockhampton to north of Cairns, including the islands to the east and townships to the west.
Last year De Costa also set out bold plans for the future, targeting sales of $400m within the next 2-3
years, an increase of ILG's Tier One Banner Advertising Members as well as improving banner compliance
and execution and also continuing to provide a low cost and efficient route to market to satisfy their supplier
Allen De Costa.
Chambers Cellars Wine with Josh.
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