INDEPENDANT LIQUOR GROUP

ILG family heads south for 2022 study tour

Independent Liquor Group gathered in Tasmania recently to connect, learn and celebrate together.

Independent Liquor Group (ILG) has ticked another major success off its social calendar recently, holding its first annual study tour since the pandemic began.

More than 120 delegates descended on Tasmania to experience the drinks the state has to offer (which you can learn more about for yourself from page 54), while also networking, learning valuable industry insights and celebrating together as a collective. The last time the group was able to get away together on such a scale, with a format that combines business and pleasure, was Vienna and Budapest in 2019.

Paul Esposito, Mario & Kamelia Tevanian and Luke Multari

“We are seeing that consumers are being cautious and there are changes in their buying patterns.”

-Paul Esposito CEO ILG

At this year’s conference, more than 80 per cent of delegates were members, a higher proportion than is usual at such trips. This shows the great demand in the ILG family for such events that allow retailers the unique chance to connect directly with the brands and styles of the beverages they sell in-store.

In the meantime, highlights of the Tasmanian trip were plentiful. Delegates were based in Hobart, which enabled visits to the likes of Frogmore Creek Winery, Cascade Brewery and Lark Distillery.

Following a more normal return to social events this year, ILG is coming into summer strong, especially ahead of its annual AGM and conference, slated for mid-October in Brisbane. ILG is expecting close to 600 people at that conference, which will also present a lot of the group’s ideas and plans in the digital and e-commerce space.

The current strength of ILG

National Liquor News’ Shane T Williams was along for the ride at ILG’s Tasmanian conference to capture all the best moments. He also sat down with Paul Esposito to hear about the current performance of the group and its members.

Q: It’s great to see ILG back hosting its study tour again after the pandemic. What has it been like for the company in the time since the last one?

The whole COVID period has been unsettling for all of us, and there was feeling of uncertainty in our industry. As a business, our role was to support our members to ensure that they would survive and continue to trade. Interestingly enough, it was the members’ support that kept ILG alive.

The period during the pandemic also allowed independent retailers to evaluate their current situation and many decided that they needed change. During this period ILG welcomed over 250 new members to the cooperative.

Wayne McConnell, Mel Khoury, Nick Arcer, Sandra Christour, Luke Van Staveran, Kam Tavenian, and Ripple Parekh

ILG’s continued focus is member recruitment and we are receiving enquiries daily. Independent members are tired of being told what they can and cannot do in store. The major difference between ILG and other independent banners is we recognise that the cookie-cutter approach adopted by other banners does not resonate with most independent retailers. ILG’srole is to help you build your business and not dictate terms.

During this period, we also had two record years in sales revenue, new members and more importantly, member benefits. This result was huge considering 45 per cent of our members were on-premise and were impacted with shutdowns and restricted trading for most of the two years.

Q: How do you see the key end of year trading period going this year?

At the moment, the growth momentum continues with the on-premise on track to reach pre-pandemic numbers. Weare 47 per cent up compared to last year in the first two months of the FY23.

Trying to predict the next six months will be difficult with the current economic climate. The impact of inflation versus near-zero unemployment, global uncertainty in regards to supply chain and not to mention conflict in Europe, will understandably take a toll.

Tracey Rushton (ILG)

We are seeing that consumers are being cautious and there are changes in their buying patterns. There is a demand for smaller pack formats and bundle offers and more interest around certain price points in different categories.

Q: Are there any notable trends you’re seeing in the industry right now that might impact this period?

New product development still plays a huge role and represents a large portion of growth. We are seeing strong growth in all categories, in particular RTD, driven by the bourbon and whisky segments. Seltzers and new-age beverages are also in huge demand and we expect this will continue to grow leading up to summer.

The non-alcoholic market will be an interesting category to watch. How the suppliers handle pricing when it comes to supermarkets will determine our level of engagement. At the moment, most of our engagement is aroundFebFast and Dry July.

The feedback from our consumers is that they want more activity around the $40 price point for full bottle spirits, full cases of beer $50 and under, wine bundles under $20 and more smaller pack formats.

Q: What do you predict these trends will mean for ILG in the next 12 months?

We will adapt to what our members require to drive foot traffic ande-commerce to their stores. Our strategy for the next 12 months is growth, and we can do this by a more de-centralized approach to allow our members to support their communities. We forecast that the next 12 months will be exciting with the launch of our B2B platform and the continued growth we are experiencing in all our retail banners.

Michael and Tania Thomas

We are expecting our member recruitment to continue on the back of providing free e-commerce platforms, freight rebates and no hidden or monthly membership fees. Not to mention that being part of a cooperative will futureproof each member’s business, we also do not support independent hardware or grocery stores.

Q: How is ILG going with expansion into Victoria?

We have 22 active members/customers and a good pipeline in Victoria. It is fantastic to see that some have joined us on the study tour.

Ivan See, Carolyn West, Jason West and Gina Bai

The feedback from our Victorianmembers has been fantastic and they have really embraced ILG. They enjoy the freedom to trade independently and not have programs forced upon them by their banners and suppliers. Victoria is a priority for ILG and I welcome more Victorian members to be part of our family.

Q: Are there any key issues or initiatives that ILG is helping its members deal with at the moment?

Nearly all of our members areexperiencing staff issues which impactordering and deliveries. My warehouseteams have been sympathetic andflexible to their needs.

We are now in the position to offeran e-commerce solution to all ourmembers, free of charge. In some casesfor some of our members, e-commercerepresents around 14 per cent of theirturnover which is all incremental.

Paul & Suzanne Esposito, Brooke Knight, Alisha Clifford, Cody Coulton and Shaughn Muller

We are close to securing a new warehouse in Queensland. It has been a difficult process as the current economic environment is really hindering this process. The subcommittee on the board is working hard on securing a site so we can have a new home for our Queensland family.

There are many more initiatives we will be presenting at our AGM/Brands Conference in Brisbane in October, including the launch of the ILG foundation. I recommend if you can get away for a few days, join us, it will be worthwhile and it will be good to see you all again.