BANNER GROUPS
Independent Liquor Group Independent Liquor Group CEO, Paul Esposito talks to National Liquor News about an action-packed year ahead and the launch of a new premium banner. Q How has ILG performed in the last 12 months? What are you looking forward to in the year ahead? Over the last 12 months, we have been busy implementing new systems, and continually improving our members’ offering to help future proof Australia’s largest member-owned cooperative. We are now experiencing the benefits of the Super Cellars rebrand, with good growth in membership, value and volume. This, along with the strong performance of our Bottler banner in both states, has delivered ILG solid growth in all categories. The year ahead is action packed, with further improvements such as the implementation of our new ERP system, web portals, e-commerce and the launch of Fleet Street, our new premium banner. We will also be expanding ILG further in Victoria, providing independent retailers an opportunity to join the cooperative.
Q What are the key issues ILG is facing? The issues we are facing as an industry are complex. Discretionary spending on alcohol is declining and the drinking habits of consumers are changing. The biggest impact on a declining market is the chase for market share, which results in increased competition, and a lack of price appreciation. This impacts our members as their operational costs continue to rise.
“Consumers are looking for quality, and are wanting to buy craft or products that are viewed as craft without paying the premium price. The difficult choice for our members is choosing the right products.”
Q What are the key initiatives/focus areas that ILG is leading to continue the development and support of your members? Current research shows that consumers are moving away from big box formats to convenience and online platforms. We are currently working in the digital space to help improve foot traffic and assist our members to improve the customer experience. We cannot ignore digital Australia. More shoppers are being influenced by what is being seen on devices, as well what is seen in-store. This will be our focus moving forward.
Prosecco/rosé, craft and premium beer, spirits and supporting NPD. We will also be focusing on driving foot traffic back to the convenience sector.
Q What are the customer initiatives/new products in the pipeline for ILG? We need to look for efficiencies in all areas of our business to remain competitive. We want to partner with our suppliers for exclusives, rather than enter into the private label space. As Australia’s largest liquor cooperative, we have to respond to the challenges and stay ahead of our competition.
Q With craft still proving a popular trend across
Q What do you think the industry can do to
multiple categories, what are the challenges for banner groups in dealing with increased supplier numbers and having the right products on shelf? The craft revolution is definitely here. Not only in the beer space, but craft spirits are now playing a major role. Consumers are looking for quality, and are wanting to buy craft or products that are viewed as craft without paying the premium price. The difficult choice for our members is choosing the right products.
further support banner groups? The industry needs to understand that each outlet is independently owned and a ‘one size fits all’ program does not necessarily work for each outlet. The industry also needs to remember that before the major chains dominated the liquor industry, it was the family-owned independents that helped build some of the brands that are still relevant today. The industry can help by making it a level playing field for all.
Q What are the key trends your group
Q What do you feel is working best from a
are focusing on for 2019? The key trend is premiumisation with the launch of Fleet Street and we will be focusing on popular products such as spritz, pink spirits, gin,
marketing perspective for ILG? Today press and catalogues still play a major role from a marketing perspective, but we are quickly moving to the digital and social platforms.
NATIONAL LIQUOR NEWS JUNE 2019 | 41