Year in Review
February Proportion of Australians drinking declines A Roy Morgan report highlighted a gradual decline in the percentage of Australians who consume at least one type of alcoholic drink over an average four week period. The report showed that 67.9 per cent of Australians aged 18 and over had at least one drink in an average four week period, compared to
Liquor ‘the strongest performer’ for the Coles group In Coles’ first result since the Wesfarmers demerger, liquor was the strongest performer in the group.
70.1 per cent in 2013. It also showed declines for all major categories of alcoholic drinks, except for cider, which recorded growth. Over the last five years the biggest decline was for wine (down 1.3 per cent), followed by RTD (down 0.9 per cent), liqueurs (down 0.8 per cent)
Overall, the group delivered total sale revenue of $20.9bn, up 2.6 per cent on the prior corresponding period, with EBITs of $733m, down 5.8 per cent.
and beer (down 0.5 per cent). Michele Levine, Roy Morgan CEO said: “The potential reasons for this decline are likely to be as a result of switching to healthier
In the liquor group, total sales revenue was up by 0.6 per cent to $1.7bn with EBITs up $85m, an increase of seven per cent.
options, cost, social issues involved such as drink driving and alternative drug taking.”
Coles CEO Steven Cain said that the liquor group had “all metrics trending in a positive direction”. “Our work around promoting exclusive brands is paying off,” Cain said. “Average basket size continued to improve, driven by general market trends of premiumisation and a favourable mix impact from the spirits category overall. “Exclusive label brands are growing faster than non-exclusive brands with over 50 new lines launched in the half.” Online successes of Coles were also replicated in liquor with online growing at around 30 per cent.
Brad Banducci says Dan Murphy’s needs to innovate Woolworths CEO Brad Banducci said that Dan Murphy’s needed to reposition through innovation in order to keep up with rapidly changing consumer needs. The comments were made during the Woolworths results presentation for the first half of FY19, a disappointing result for Endeavour Drinks Group (EDG) with a small sales increase and a fall in earnings before interest and tax. Banducci said, “BWS has really led the charge for us here,” thanks to on-demand home delivery. The success of BWS and Jimmy Brings has begun to influence changes to the Dan Murphy’s model. “Critically important in this category is the whole topic of convenience and people wanting it now,” Banducci said. “A lot of work [in Dan Murphy’s] is not getting the traction we would like right now in sales numbers, but will be a key part of our future.” February 2020 | 109