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ADELAIDE RETAILER SPOTLIGHT
Shining a light on Adelaide’s liquor retailers
Six independent retailers reflect on the highlights and challenges of operating in the South Australian liquor market, and the unique qualities that give them a point of difference.
With its strong focus on local products and proximity to some of Australia’s most respected wine regions, the South Australian liquor market is a unique one.
As with many places throughout the country, the market has changed in recent years in South Australia, with shifting customer preferences, cost-of-living pressures, and a growing food and wine culture in Adelaide all affecting the way that retailers orient to consumers.
Last month, six retailers spoke to National Liquor News about the challenges, opportunities and innovations in the retail liquor space in South Australia.
Drakes Cellarbrations leans into locality
South Australia has a very competitive liquor retailing landscape, with ongoing CPI increases, less consumer spending and rising business costs challenging retailers to fight for market share.
Independent retailer Drakes currently operates a total of six Cellarbrations stores in South Australia, each attached to its supermarket stores.
Offering a one-stop-shop model where consumers can purchase food and alcohol in one location, with a special focus on local produce, the Drakes Cellerbrations offer is very attractive to the South Australian consumer.
Despite Endeavour Group dominating market share in South Australia, Joanne Elson, Category Manager SA & QLD at Drakes says growth for independent liquor channels in the last three years has been significant.
“We find the consumer enjoys shopping in a family-owned business where the service is always high, and the competitiveness of our pricing is strong.
“In South Australia our customers love ‘local’. We have some of the best wine producing regions in the country from the Adelaide Hills with the cooler climate famous for our Sauvignon Blanc and sparkling, the Barossa with our historic vineyards and full-bodied reds, and the Clare Valley for our world class Rieslings just to name a few,” she says.
Beyond South Australia’s famed winemaking, the state also has many established local beer producers such as Coopers and Pirate Life, and local spirits distilleries producing exceptional products. For Drakes, it is this love of local that allows the retailer to create a point of difference.
“As a family-owned business we focus heavily on supporting local suppliers. We have worked hard to get unique products into stores to help drive sales.
“The added benefit of having superior supermarket stores gives our liquor stores an edge and our customers confidence. Our social media presence is also growing and we drive sales through our local area marketing.
“We can offer high quality food and liquor all in one location that resonates with our customers, with our staff having strong knowledge of their respective stores and what suits their demographics. We also help our local suppliers to get noticed in the market and drive economic growth for South Australia,” added Elson.
Speaking about shopper behaviours and category trends, Elson says Drakes has a high wine mix in its stores, predominantly driven by local, and like many other retailers across the country, RTDs are big movers.
“With cost-of-living pressures we’re seeing the $1525 wine price performing well. Our stores offer a wide varying range of wine in over 10 subcategories from reds to whites and fortified wines,” she says.
“We see the consumer moving toward the six-pack and 10-pack offer across the RTD market, getting strong growth, and high ABV is a big consumer trend taking off with increased volume in this space.”
Spirits-wise, Elson notes that gin, particularly local, has seen growth in recent years along with increased interest in tequila. More than anything, she believes that shopping behaviours are currently being influenced by a dip in discretionary spending.
“We see the shopper seeking value and moving away from big packs to smaller pack options. The Cellarbrations program is competitive and keeps us relevant with the consumer and ongoing challenges.”
East End Cellars reaches for Riesling
Opened in 1998 by wine fanatic Michael Andrewartha, East End Cellars is home to an array of local and international wines, often purchased in smaller quantities due to limited storage space, and so what you see on the shop floor makes up most of the total stock.
Shaughn Jenkins, Assistant Manager at East End Cellars, says: “We have a lot of wines that the larger bottle chains don’t carry, because of their quantities, and we have a lot of great local producers, which make up 50 to 60 per cent of the wine we sell.
“The vault in particular is key to this, because the wines are all under six bottle quantities in there. Some of them go way back in time or into tiny allocations that even we, after nearly 30 years, still have to fight for, to try and get the wines out of the hands of Sydney and Melbourne.
“It can be challenging, because a lot of those wines would sell in a weekend in those cities. But in a town of 1.5 million, with 55 per cent of the nation’s wine being made in our state, there’s no shortage of wine, so we have to make sure we get them all into the right hands.”
One of the notable wines stocked by East End Cellars is the Kanta Riesling by Egon Müller, the result of a unique winemaking partnership in which German tradition meets the premium, cool climate fruit of the Adelaide Hills.
“The Kanta wine is something special, it’s actually our own Riesling and we work on that with a very famous German winemaker, Egon Müller,” says Jenkins.
“Egon comes over every year and works with Michael and the team. At Adelaide Hills we’ve got a couple of blocks that we source from, and we make a Riesling each year, which retails around $35 to $40.
“We started working with Egon 20 years ago, so it’s been quite a long time, and he is considered to be one of the top Riesling minds in the world. That was a very fortuitous friendship forged many years ago, and to be able to have someone of that knowledge come and work with us is very special.
“We always have our current vintage on by the glass so that people can get a taste for it, and jump straight into it without having to pay a hefty cost,” he concluded.
50 years of family at Fassina Liquor
The Fassina Liquor story begins in 1975, when father and son duo Joe and Ross Fassina bought a liquor wholesaler, then shortly after a bottling hall operation in Adelaide, bottling local and imported products such as Heaven Hill Bourbon, Clan Stuart Scotch Whisky, and Zhivago Vodka.
In the 1980s, the opportunity arose to expand into liquor retailing, and the family jumped at the chance.
Today, there are seven Fassina stores in Adelaide and one in Whyalla, as well as a large warehouse. Third generation retailer Elise Fassina spoke about how the family business honours its heritage.
“Our store name has changed a couple times over the last almost 50 years, and since 2004 we have operated proudly under our family name, Fassina Liquor. I’m told we are South Australia’s longest running familyowned wine store and the second oldest in Australia,” she said.
Now, the business is run by the second and third generation, with Elise’s father Ross as Managing Director, her aunt Eleanor as Finance Director, her brother Adam as Operations Manager, and herself as Marketing Manager.
“With both second and third family generations working side by side in the office every day, we are still truly a family business in every sense of the word,” says Elise.
The market for South Australian liquor retailers is increasingly challenging, especially due to competition from Endeavour and Coles Group. Being independently owned and operated is an important point of difference for Fassina Liquor.
“It gives us a distinct advantage of being more flexible and able to execute a quicker turnaround time for rolling out new products and promotions. We also stand apart by acknowledging each store has a different customer base and working closely with each store’s manager to modify their range, along with maintaining a heavy focus on showcasing local products,” Elise said.
Over the coming months, Fassina Liquor is upgrading its systems and preparing to celebrate a major milestone next year.
“We are about to embark on a significant whole of system upgrade this year which, once completed, will enable us to offer our customers more convenience options, including click and collect and a unique customer-focused loyalty program,” added Elise.
“We are very excited to be celebrating the company’s 50th anniversary next year. While currently in the planning stage, our customers can expect big competitions, special tastings and sale events to mark our half a century as a South Australian family company.”
Hurley Cellars sees success with flexible ranging
Hurley Cellars, the retail wing of Hurley Hotel Group, comprises five stores in Adelaide and two in regional South Australia. Hurley Hotel Group’s Retail Liquor Manager, Tony Hurley, explained that being a South Australian owned and run business is a key point of difference for the stores.
“Compared to the national retailers, we’ve got a much better ability to market ourselves to our demographic here in South Australia. I think some of the national banners struggle with that because South Australia is only eight per cent of the population, so a lot of the national statistics are based on Melbourne, Sydney, and other bigger cities. We can target our offering to what our customers really want when they come into our store,” Hurley said.
Local South Australian products are a favourite across the stores, but preferred categories differ from location to location.
“At Panorama Cellars, wine seems more popular, and we’re not far from McLaren Vale and the Adelaide Hills. Other venues have a focus on premium spirits, like at Marion Cellars,” Hurley said.
Three Hurley Cellars locations feature tasting rooms, including the recently opened Panorama Cellars. These tasting rooms provide a space for staff, customers, and suppliers, to learn about and experience the products on offer.
“A tasting room provides an opportunity for our customers to sample a variety of wines, spirits or other beverages. Our tasting room can also serve as an educational space where customers can learn about different types of beverages, including their origins, production methods, and flavour profiles,” Hurley explained.
One of the main uses for these tasting rooms are regular masterclasses, which are led by local producers.
“Hosting masterclasses attracts customers who are specifically seeking out a unique and immersive tasting experience. These masterclasses add a distinctive element to our brand identity and aim to attract both local customers and individuals seeking a tasting experience,” Hurley said.
Masterclasses also have a positive effect on sales, more so than other events like wine dinners.
“The masterclasses are shorter, and they attract people who have a passion for wine or for that particular producer. We also usually have competitive pricing or a value add to go along with the masterclass offering,” Hurley said.
Hurley emphasised the importance of flexible ranging to providing a quality customer experience.
“I would hate to think that any of our retail managers wouldn’t stock something that was really popular, that the consumer wants, just because they didn’t like it. You’ve got to be adaptable, to range the things that the market wants.”
Edinburgh Cellars ups the ante with fine wine focus
Since 1997, Edinburgh Cellars has operated as an independent liquor retailer from a heritage listed sandstone shopfront in the historic Mitcham village. Since then, there have been various incarnations of the shop, but it has always stood as an icon thanks to its connection to the wine industry and trade.
Offering a unique selection of fine, rare and carefully cellared wines, Edinburgh Cellars makes use of its surrounding wine regions and relationships with international wine importers. Sam Taylor, Cellar’s Manager at Edinburgh Cellars, says the store
Surrounded by the Adelaide Hills, McLaren Vale, the Barossa Valley and the Clare Valley, Taylor says Edinburgh Cellars is in a prime position to attract prestigious players in the South Australian wine industry, and a number of notable names have worked in the shop while obtaining winemaking degrees.
“Nick Ryan worked here in ’05, and Adam Wadewitz of Shaw + Smith,” said Taylor. “Many of our casuals come through here while they’re doing their wine degrees, and it’s always a bit of fun.
“We’ve got a giant wall of great people, from those who have either worked here, or winemakers who have visited over a long period of time and hosted tastings and masterclasses.”
Parade Cellars encourages industry collaboration
Parade Cellars aims to engage consumers with a diverse and unique selection of products. Ashely Sinclair, Parade Cellar’s Fine Wine Expert, explained that providing this experience requires both quality products and quality customer service.
“Our ethos is to provide our customers with an exciting range of local and international wines, spirits and beers. Our experienced team aim to provide a high level of customer service and expertise, in order to ensure our customers leave the store with a product that fits their needs and that they feel excited about,” he said.
Parade Cellars includes a fine wine room, which is separated from the main body of the store both for security reasons and to create an atmosphere.
“It’s part of the experience. People who drink these types of wines, they like to come into the room, to feel special. They generally like to grab one of the staff members and have their attention for a while. We have a very high standard of staff, and if it gets them over the line to buy something, it’s part of what we want to do more of,” Sinclair said.
Consumer preferences for wine have changed significantly in recent years, especially during and following the pandemic. Sinclair pointed especially to a shifting interest in natural wine for the off-premise.
“When everything was locked down, the bar is the place where people would normally drink out, but they had nowhere to source their wine. We had an influx of customers chasing it, and an influx of winemakers wanting to sell their wines,” he said.
However, as venues reopened, this trend reversed, and consumers returned to the onpremise for their natural wines. In Sinclair’s opinion, these unique wines are easier to promote in the on-premise because consumers are more willing to allow servers and bar staff to guide their drink choices. However, Sinclair sees more opportunities for collaboration between the on- and off-premise.
“I don’t think we talk about the relationship between the on- and offpremise enough. We’ve got Arkhé, one of the most respected, most booked-out restaurants in Adelaide, just down the road from us, and their wine list and our selection has a lot of crossover,” he said.
“There’s room for everyone, and I think we could do a better job at interacting more and being more tolerant of our competition. We might as well find areas where we can prop each other up.”
