The Australian liquor industry has gone through significant changes within the past decade with consumer buying habits leading the way. Many of the trends were present pre Covid but have since accelerated with the increased consumption of non alcoholic products, decline in beer sales and an ageing population all contributing to the changes.
The market is dominated by the 4 largest liquor retailers with Endeavour Group & Coles accounting for roughly 53% of total revenue. Victoria leads the way with 38% of the total establishments (outlets) followed by New South Wales with 33% with deregulation in the industry occurring in the 2000’s as part of the reason these two states dominate market share.
Banner Groups like Metcash owned Independent Brands Australia (IBA) is the largest buying co-operative in the country and has progressively taken market share from the Big 4 and operate under the Cellarbrations, Bottle- O & Thirsty Camel brands amongst others.
Geotech recently undertook a major market analysis for the Thirsty Camel brand on behalf of United Inn-keeper Association Ltd the central body for the operations in Victoria. The business wanted to get a better understanding of the potential impacts opening a new store or rebranding a competitor would have on surrounding store sales given part of the business model revolves around converting competitor sites across to the Thirsty Camel brand.
Another important consideration for the business was to better align each stores product range with the types of consumers likely to shop there. The benefits to the business would be more nuanced than just sending the same products to every store, we therefore undertook a category analysis to help underpin operational efficiencies and marketing for the business across the network. Why push beer sales into a store when the demographics suggest wine & spirits will better align with the customers frequenting the store?
In addition to the analysis, Geotech was able to develop a sales forecasting model to assist Thirsty Camel better understand the potential sales for any new store or relocate. This now gives the business a suite of tools at their disposal to more objectively assess the current network and where the best opportunities will be for new store growth.
For more information please contact Jeff Vassel the Global Business Development Manger [email protected] or +61 421 684 444