Paul Esposito, CEO of Independent Liquor Group (ILG) spoke about the group’s growth in Queensland and Victoria, and its unique member offering.
Q: How has 2024 been so far for ILG?
Year to date, we have growth in both pillars value and volume. ILG is up 6.5 per cent in value, and up 4.8 per cent on volume. Revenue was up about four per cent in the first quarter of this year and we’re just about flat when it comes to volume. As forecasted, growth is slowing down in this current economic environment.
Victorian independent members have welcomed ILG and excitingly we are recruiting around five to six members a week. Our strategic partnership with BAM Logistics in Dandenong provides our Victorian members an alternative to existing wholesalers. This collaboration not only enhances our distribution capabilities but also ensures we can offer exceptional service and support to our growing Victorian member base. The potential for ILG in Victoria is immense and we are committed to making this region our primary focus for the next 12 months.
Some of our members are experiencing reductions in basket sizes and consumers focusing on promotional price points. All categories are impacted by the current economic climate, with consumers seeking out value lines and pack sizes or trading down to smaller pack configurations.
Q: How is the rollout of Liquorstop Warehouse going?
We’ve launched Liquorstop Warehouse in NSW, and we will soon launch the platform
in Queensland and Victoria.
This platform has been designed specifically for the on-premise sector and is gaining traction in NSW. Industry data revealed significant leakage to the supermarkets within the on-premise channel. Liquorstop Warehouse addresses this issue by providing the convenience of online trading with retail benefits for more savings and margins. It also aims to help operators and suppliers connect and conduct business via a simplified online ordering system.
Q: Last year you said you expected Queensland to overtake NSW in volume. Is this still your expectation?
The Queensland market is growing, and we distribute beer for both breweries in Queensland, which inflates the Queensland numbers. Both States are performing well but Queensland is on track to exceed NSW volume.
Q: How does ILG make a difference to its members?
The difference is the importance of cooperatives. They keep industries alive by safeguarding the future of their members. ILG was formed 49 years ago for that same reason. ILG gives independent retailers the ability to compete effectively through better buying power.
Australia’s retail landscape is dominated by three major players that report to shareholders. The ILG shareholders are member-owners with equal rights, and our dividends are distributed within the membership. The risk we face with the ‘big three major players’ is their dominance on pricing and supply.
The best way to safeguard independent retailers is for more independent retailers to join the Independent Liquor Group cooperative.
This Q&A was originally published in the June/July edition of National Liquor News.
