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FIGURES AND FACTS, PEOPLE AND POLICY, CORPORATE & COMMUNITY

INNOCENT BYSTANDER CHANGES HANDS

On May 5, Brown Brothers will acquire Innocent Bystander from Giant Steps. Giant Steps and Brown Brothers will be working closely together during the transition. Currently there are plans to open a new Innocent Bystander cellar door within the old White Rabbit brewery site. Giant Steps will continue to sell Innocent Bystander wines at its winery and cellar door until May.

PENNY’S HILL WINS BEST AUSTRALIAN RED WINE

Penny’s Hill winery in the McLaren Vale has won Best Australian Red Wine at the esteemed Mundus Vini international wine competition in Neustadt, Germany. The title was taken by the winery’s 2014 Footprint Shiraz, which also won the top ranking Grand Gold award. Penny’s Hill 2014 Edwards Road Cabernet Sauvignon and 2014 Skeleton Key Shiraz also took home some of the glory, each awarded Gold.

MOËT HENNESSY TO CLOSE E-COMMERCE SITE

Moët Hennessy Australia will close its direct-toconsumer website, Moët Hennessy Collection, on April 28. In its place, the company will launch a Digital Customer Experience Division, which will work in collaboration with Moët Hennessy’s trade partners. Many retailers complained when the existing website launched two years ago, saying it was in direct competition with their businesses. The company has begun contacting key customers about the new digital strategy and says it has received positive feedback so far.

CALLINAN REVIEW RECEIVES 1,856 SUBMISSIONS

The Callinan Review into the existing lockout laws and liquor restrictions in NSW has received 1,856 submissions. The formal submission period for the independent review by the Hon. Ian Callinan AC QC opened on 5 March 2016 and closed April 4. The submissions addressing the 1.30am lock out, 3am cease alcohol service restriction and 10pm take-away liquor restrictions will be posted on the independent review’s website after April 18. The review will consider all submissions before providing a final report to the NSW Government in August.

LAUNCESTON JOINS TASSIE WHISKY BOOM

A group of five backers led by Chris Condon, former Boag’s brewer and Chief Distiller at Tasmania’s Nant Distillery, have progressed their plan to open Launceston Distillery in a heritage-listed aircraft hangar at Launceston Airport. Production at the distillery began late last year and Condon has since applied to Tasmania’s liquor regulator for permission to sell spirits on-site. “Our casks are predominantly American oak (ex bourbon) and French oak (ex port or sherry) and will all be matured in our bond store in the hangar,” Launceston Distillery said. “Our flagship product will be Tasmanian Single Malt – we will not compromise the quality, as such, the hand crafted single malt will be produced exclusively from Tasmanian malted barley.” Launceston Distillery is the city’s first whisky distillery in 175 years, but Tasmania’s fifth distillery to apply for a liquor licence in the last 12 months. Since March 2015, the Commissioner for Licensing has granted applications to Redlands Distillery in Kempton, Corra Linn Distillery in Relbia, Hellfire Bluff Distillery in Boomer Bay and Nonesuch Distillery in Forcett.

MARGIN MANAGEMENT – IS IT UP TO THE RETAILER OR THEIR COMPETITION?

By Mal Higgs, Project Manager for the ALSA Retail Insights Project www.alsaretailinsights.com.au

In an extremely competitive retail environment like the liquor industry, it is often assumed that market ‘forces’ determine retailers’ gross profit margins. It is also assumed that the trade considers newspaper advertising of liquor products as the ‘official’ market price for a product or category of products. As a result of these assumptions, it would be easy to expect that these market forces would determine a retailer’s margin. In reality, nothing could be further from the truth. At the end of the day, each individual retailer has an expectation of what gross profit margin he or she will want or need to achieve in a day, week or year. Most now have a computerised point of sale system that allows them to accurately track their sales and profit from individual SKU right through to category and even supplier if necessary. Gross profit margins these days can range from lows of near 15 per cent to highs of well over 30 per cent. The factors that influence these outcomes range from the quantity of full cartons of beer sold – traditionally extremely low margin when sold at competitive prices, through to an outlet that sells larger quantities of single bottles of wine, which generally speaking would be at a much higher margin. We are now seeing many more retailers adopt a far more strategic approach to margin management by managing their ‘mix’ of business in such a way as to improve their GP, while still remaining competitive in the market. This is, undoubtedly, the ‘skill’ of the retailer and something we often ignore in the cut and thrust of the competitive set. ALSA has developed the Retail Insights program to assist in the process of professional development. Margin Management is an upcoming module on the program. Suppliers can also play an important role by providing information to their retail partners on the latest trends and innovations occurring in the market place. It is this partnership between retailers and suppliers that will ensure a sustainable alcohol industry in the longer term.