Metcash, the franchise operator of Bottle-O in New Zealand, is considering the complete withdrawal of its wholesale liquor business from the market.
Some 110 Bottle-O locations are currently in operation in New Zealand, with the wholesaler also operating Tasman Liquor and Allied Liquor. These operations combine to account for around 370 stores in the country.
A Metcash spokesperson told Inside Retail that the plans wouldn’t affect its retail footprint in the country.
“Metcash has recently completed a routine review of its New Zealand liquor operations and is proposing to exit its wholesale liquor businesses, Tasman Liquor and Allied Liquor, while continuing to operate Allied Retail Group, its retail business which includes The Bottle-O, Liquor Centre and Merchants Liquor brands,” they said.
It comes after Metcash told investors in its recent full-year financial report that operations in New Zealand represent less than 5 per cent of Metcash’s total revenue and assets. The ASX-listed wholesaler also operates Cellarbrations and IGA Liquor in its Australian independent brands liquor portfolio.
Its wholesale liquor business in New Zealand was found to have not been as successful as the direct-to-store model in the country, a review found, with the investments required to rectify this deemed too great.
“As of July 23, we have entered a consultation period with our Tasman Liquor employees. “Our focus is on supporting our people through this process and providing professional guidance through access to our employee assistance program,” Metcash added. “We will carefully consider all feedback before our final determination is reached.”
Metcash originally entered the New Zealand wholesale liquor market in July 2002 when its liquor division, Australian Liquor Marketers, acquired Allied Liquor. Bottle-O was then launched in 2007 in New Zealand; the parent company went on to acquire the Liquor Centre group in 2020 to expand its operations.
The wholesaler’s wider liquor division accounts for more than $6.4 billion in revenue each year. Despite occupying nearly one-third of the Australian liquor market, Metcash’s presence in New Zealand falls far behind the likes of Foodstuffs and Woolworths.
