8 minute read
Making memories with ILG
THE INDEPENDENT LIQUOR GROUP MADE ITS WAY TO ASIA LAST MONTH TO CELEBRATE THE BUSINESS’ SUCCESSES WHILE CREATING SOME LASTING MEMORIES, AND DEB JACKSON WAS IN ATTENDANCE.
“We’re ahead of the game” was the key message from Independent Liquor Group (ILG) CEO Paul Esposito as he opened business sessions at the 2018 ILG conference in Singapore and Bangkok.
Around 100 ILG members along with their families and key suppliers took to the skies for the Asian adventure of a lifetime. It was an opportunity to not only hear about the strengths and future direction of the ILG business, but to engage and spend time with like-minded business owners and fellow ILG members, who by the end of the week were more like family than friends.
The ILG Group at Singapore Zoo
And that really is what the ILG business is all about and is very much the direction that Esposito has been steering the business since he stepped into the CEO role back in April, 2017. It has been all about getting ILG back to its grass roots and family-orientated cooperative core.
The ‘A Taste of Asia’ conference, co-ordinated by the amazing Maria Limsico and Amanda Jobson from ILG, was filled with money-can’t-buy experiences including a police escorted took took ride around the streets of Bangkok – and if you’ve ever experienced the traffic in Bangkok you’ll understand just how valuable that police escort really was.
Bob McGhee, Sergio and John-Paul Colosimo, Sandy McGhee and Paul Esposito
THE FUTURE OF ILG
This was just the second international conference that Esposito has presided over and in his opening address he was able to share with delegates that ILG is experiencing growth in every category of its business, with an improvement in net assets sitting at $18.7m that puts ILG in a strong position for future growth.
“Every category of our business has good growth. There are some areas that still need improvement but we’re ahead of the game. We all know that in business cash flow can be an issue, however ILG is in a positive cash flow position, giving us the flexibility to be able to do some exciting things.”
Checking out the sights of Singapore
A police escorted took took ride through Bangkok
Fish feeding frenzy on the Chao Phraya River
This time last year ILG reported net assets of $16.8m and this year that balance has risen to $18.7m.
Esposito talked delegates through ILG’s performance, with sales revenue in growth of 13 per cent versus last year. He also said that the Townsville warehouse is now fully-owned by the cooperative. Excess space in Townsville will be leased and will further improve Townsville’s profitability. “My focus over the last 12 months was also to reduce inventory holdings and we’ve successfully reduced this number by 23 per cent, resulting in more efficient practices and improved cash flow.”
Amanda Jobson and Maria Limsico
Paul Dunn, Peta Hemphill, Damien Bottero, Belle Bottero, Lachlan Britt, Dean Kornman
As for ILG’s banner groups, Super Cellars and Bottler Banners are up 13 per cent in value and nine per cent in volume versus a year ago. Esposito told delegates that the reason the value is outgrowing volume is based on the impact of the Container Deposit Scheme (CDS) in NSW and the mix of business shifting to higher value products.
As for moving forward, ILG has some pretty exciting things on the horizon, including a move into retail in Victoria, a concept store in NSW and the launch of a new premium banner.
“Once a year the Executive and Board members of ILG get together to plan what ILG should look at in the next three or four years. Last year we set ourselves an ambitious target, to turn over a half billion dollars in shed sales by 2022, so that is our aspirational target,” Esposito said. To reach that target ILG will be launching a new premium retail banner. The approval process is currently in place for the name to be registered and ILG hopes to have a couple of stores branded with the new banner by November 2018, and a focus on premium products in every category. “We need to be playing at that top end,” he continued.
Another area of focus Esposito spoke about was increasing ILG’s membership base by five per cent year on year.
Esposito also provided an update on the implementation of a new ERP system, which he said is near completion. “We’re in the final stages but it’s a huge investment and we need to make sure it’s a collaborative Executive and Board decision, and that we get it right. I’ve seen some companies over the years invest a lot of money into ERP systems only to fall down at the last minute.
About to kick off our tour through the Tiger Brewery in Singapore
The crew having some fun at the Tiger Brewery
“We’re down to two providers and we’re at the final decision now. It’s going to be about a $3m investment over 10 years. The long-term plan is to provide better efficiencies internally and at membership level, with better response times.
“Behind every decision we make here at ILG, be that moving into the Victorian market place, a new concept store or implementing an ERP system is based on adding value to our membership.”
VICTORIA BOUND
Esposito spoke delegates through the business’ strategy for the move into Victoria and the new retail business in NSW.
Rather than investing millions of ILG members’ dollars in opening another warehouse similar to Townsville, to minimise risk, ILG has instead acquired a sound retail business with the space to operate as a wholesaler in Victoria.
“The Victorian strategy differs from the ILG traditional model. We have formed a new business called ILG Retail, which is 100 per cent owned by the cooperative. Eventually the plan is to build a successful retail business in Victoria, with wholesaling being secondary. The development of ILG Retail gives us the flexibility to provide wholesale services to hotels, bars, clubs and liquor retail in Victoria.”
ILG will soon announce a partnership in a retail business in NSW that will run as a Super Cellars branded store and operate as a concept store with training facilities and tasting rooms for ILG members.
Both stores will give ILG members the opportunity to trial new initiatives such as ‘click-and-collect’ and the opportunity to explore digital with suppliers.
“As a former supplier and being in the industry for over 25 years, the key message from the membership is that ILG needed to expand into other states. We’ve now started the process and we’re in for some exciting times. I plan to give the membership regular updates and I’ll present our strategy at our AGM ‘four in one’ forum in October on the Gold Coast.
“Obviously both properties in Victoria and Sydney are fully-owned, so that’s another branch of ILG itself. ILG Retail will stand alone, with profits returning to the cooperative.”
ALL LIQUOR SEGMENTS ARE IN SYNC
A pleasing finding from the supplier presentations at the conference was seeing that each segment of the liquor industry is heading in a similar strategic direction, sharing common goals to help drive market growth.
During the conference we saw presentations by representatives from Pernod Ricard Australia, Carlton & United Breweries (CUB), Lion, Diageo and Treasury Wine Estates (TWE).
Throughout the course of the presentations it became apparent that each of the different supplier groups had identified similar industry trends and are working towards common goals.
Neville Blair, Shauna Nixon, Michael Lawson, Lloyd Blair and Jason Thomas
These trends included appealing to millennials through targeted innovation and NPD; understanding the ‘connected shopper’ in the digital age; the rise of the health and wellbeing trend and a shift towards low carb and mid-strength beverages; drinking local and the importance of supporting local producers; and of course, premiumisation.
Esposito said that it’s great to see that the industry as a whole is in sync and he thanked the suppliers who presented during the course of the trip.
Sam D'Agostino, Paul Esposito and Deb Jackson
“We’ve all got common goals and we all want growth. It’s a tough market and people are drinking less. The issues that we face and the things we need to focus on moving forward, we’re all in tune and it’s been a pleasure working with you guys.”
Esposito went on to say that the next 12 months are looking exciting for ILG, with the move into retail and into Victoria and the goal to turn over $550m by 2022 – it’s all systems go.
Taking a dip in the infinity pool at the Marina Bay Sands
VIENNA AND BUDAPEST BOUND
The destination for the 2019 ILG Conference was announced at a breathtaking gala dinner held at Sala Rim Naam on The Chao Phraya River in Bangkok. The destination will be Vienna and Budapest and it will be held in July 2019. ILG hopes to get a group of 200 people along for the trip.
“The beauty of these conferences is that friendships are formed and there are stories that we’ll talk about for a long time. Our goal is to get to 200 delegates next year, so please encourage everyone to come along. And bring your families as they’re the next generation of retailers and hoteliers moving forward,” said Esposito.
But of course, what happens on tour stays on tour so if you want to be privy to these stories and create some life-long memories and lasting friendships then you’ll just have to make sure to get along to Vienna and Budapest in 2019.
For more on this story click on the link below.
