Metcash has revealed its financial results for the year ended 30 April 2024, which show earnings for its liquor business rose by 4.9% to $109.2 million.
CEO Doug Jones said independent liquor stores such as Cellarbrations, IGA Liquor and Bottle-O were winning market share from the bigger chains run by Coles and Endeavour Group.
“The local offer is resonating with customers,” he said.
“In the years since COVID-19, Australians have rediscovered local independent stores and they’ve stuck around. We’ve been saying since early 2022 when things started to normalise that the quality of our proposition and competitiveness and relevance resonates.”
Metcash said its liquor pillar continued to perform strongly underpinned by its diversified customer strategy and the ongoing preference for localised liquor offers.
“Sales growth was underpinned by continuation of the increased preference for localised offers, including convenience, tailored ranges, competitive prices and local friendly service,” the company explained.
Total sales (including charge-through) increased 1.7% to $5.2 billion, with growth in sales to independent retail and contract customers offsetting a decline in on-premise sales.
Sales to on-premise customers declined 1.9% in line with market trends, “albeit some improvement was evident in the
second half”.
Metcash said its highest growth categories were RTDs and beer, while cost-of-living pressures drove shoppers to focus on value and lower consumption.
In the first five weeks of FY25, total liquor sales increased 3.1%, with continued growth in wholesale sales to IBA retail and contract customers (+4%). Sales to on-premise customers were flat.
Endeavour Group sales flat in third quarter
Spending rises in off-premise, declines in on-premise