Convenience store operator Coles Myer has put in a A$1.18bn bid for Australian pub company Australian Leisure & Hospitality (ALH) to trump its rival Woolworth’s previous bid of A$969m.
The bid is via a joint venture with Macquarie Bank, and is 6% higher than that by Bruandwo bidding group, on behalf of convenience store chain Woolworths.
Both chains see the bid as a way of tapping into Queensland’s fast-growing off-licence market, in a country where the law stipulates that supermarkets are not allowed to sell liquor in their own stores or through standalone outlets without owning hotels.
In a recent article The Grocer magazine discussed whether we are likely to see the likes of Tesco following the example of its Australian counterpart.
Discussing this issue, Trevor Coates, group md of Foodland Associated, the third-largest supermarket in Australia, said: “The Australian supermarkets have had to diversify even more than the UK multiples. Woolworths now has a standalone electricals chain, wine and spirits store and an office furniture and stationery business.”
Mike Godliman, director at Pragma Consulting believes that it is not impossible that UK grocery retailers may go down this route, but it is unlikely to happen in the near future. “There is not much to stop a supermarket from entering any mid and mass-market category. Supermarket-owned pubs could appear in the UK but it will take a lot of steps to get there. I’m not sure that our supermarkets will have pub chains within the next year.”
ALH owns around 130 pubs and 260 liquor shops across Australia.
The bid is via a joint venture with Macquarie Bank, and is 6% higher than that by Bruandwo bidding group, on behalf of convenience store chain Woolworths.
Both chains see the bid as a way of tapping into Queensland’s fast-growing off-licence market, in a country where the law stipulates that supermarkets are not allowed to sell liquor in their own stores or through standalone outlets without owning hotels.
In a recent article The Grocer magazine discussed whether we are likely to see the likes of Tesco following the example of its Australian counterpart.
Discussing this issue, Trevor Coates, group md of Foodland Associated, the third-largest supermarket in Australia, said: “The Australian supermarkets have had to diversify even more than the UK multiples. Woolworths now has a standalone electricals chain, wine and spirits store and an office furniture and stationery business.”
Mike Godliman, director at Pragma Consulting believes that it is not impossible that UK grocery retailers may go down this route, but it is unlikely to happen in the near future. “There is not much to stop a supermarket from entering any mid and mass-market category. Supermarket-owned pubs could appear in the UK but it will take a lot of steps to get there. I’m not sure that our supermarkets will have pub chains within the next year.”
ALH owns around 130 pubs and 260 liquor shops across Australia.
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