Booze retailers urged to follow dominant Dan Murphy’s model

Woolworths-owned stores combined, including Dan Murphy’s and First Choice Liquor, accounted for just under half of market spend, according to Roy Morgan Research. 

While Danny Murphy’s took nearly a third of the market, much smaller stablemate First Choice was the best performing bottle shop in the Wesfarmers retail portfolio, having increased its market share to 5% in 2016.

Combined, Wesfarmers owned stores took 15.5 per cent of Australia’s alcohol retail dollar whilst IGA took 3 per cent, hotel bottle shops 12.2%, wine clubs 4.6% and duty free sales 0.5%. 

As they face being crushed by the chains backed by supermarkets, independent alcohol retailers must “understand what it is about Dan Murphy’s that attracts such a large and growing share of the market​” and “emulate​” those qualities, according to Norman Morris of Roy Morgan Research. 

“Our data shows that people who usually shop at Dan Murphy’s place above-average importance on a good range and a well laid-out store where it’s easy to find what they’re looking for​. 

“At the same time, they enjoy having a good look around liquor stores, suggesting a ​willingness to browse rather than just zone in on what they came for and then get out fast,” he added. 

Smaller retailers also need to be aware what their existing customers value in a bottle shop. For instance, Aldi and IGA Liquor customers prefer liquor stores that are close to other shops, while good specials are a priority for First Choice customers. But Morris believes it will be difficult for brands to compete with Dan Murphy’s’ hegemony.

“As with Bunnings in the hardware sector, Dan Murphy’s is such a category killer for the alcohol retail market that it’s unlikely to face any challenges from its smaller rivals in the near future​,” he said.

“But this doesn’t mean the smaller players can’t claim more of the booze market for themselves, by emphasising their unique strengths at the same time as they apply what they can from Dan Murphy’s success to their own business model​.”

More stories from Down under…​

Murray Goulburn hopes new chairman will calm waters​

John Spark has been named to replace outgoing chairman Philip Tracy at beleaguered dairy co-operative Murray Goulburn after weeks of boardroom turbulence.​

Having served as chairman of Ridley Corporation, Australia’s biggest animal nutrition supplier since 2010, and as a non-executive at Newcrest Mining, Spark is a specialist in governing large and complex businesses. 

He will have his work cut out at MG, which has endured a difficult year after his predecessor retrospectively cut farm-gate milk prices. Enraged by the move, many dairy farmers successfully called for Tracy’s departure.

Adam Jenkins, president of United Dairy Farmers, said his members wanted to put all anger behind them following Spark’s appointment.

"This has been an incredibly tough 12 months for MG suppliers and the Australian industry​," he told the ABC.

"The industry has been calling for this change for over 12 months, and its been an extremely challenging period for Mr Tracy and his board. But we respect that he's stood down​.

"It'll restore confidence to MG's suppliers and we can now move forward​,” Jenkins added.

In a statement Spark said it was “a true honour​” to be head the Murray Goulburn board, and made a specific reference to the “proudly farmer-controlled​” nature ofthe co-operative.

“As chairman, I look forward to playing a central role at Murray Goulburn and working closely with my fellow directors and chief executive officer, Ari Mervis, to build a stronger company for the future​,” he added.

Food mould innovator selected to pitch invention to Silicon Valley​

An Australian researcher who has discovered how to stop mould growing on fresh food will join a select group of innovators in pitching pitching to big-name backers.​

Murdoch University plant disease researcher Kirsty Bayliss developed the chemical-free treatment for fresh produce that increases shelf life, prevents moulds and decay, and reduces wastage.

“Our technology will directly address the global food security challenge by reducing food waste and making more food available for more people​,” Dr Bayliss said.

“The technology is based on the most abundant form of matter in the universe: plasma. Plasma kills the moulds that grow on fruit and vegetables, making fresh produce healthier for consumption and increasing shelf-life​.”

After working on preliminary trials for the past 18 months, the team is now preparing to start scaling these up by working with commercial food producers.

Dr Bayliss will travel to San Francisco later this month after being selected by the Nasa-founded innovation platform Launch as part of an annual food innovation challenge it organises.

She said that this was a huge opportunity: “I will be presenting our research to an audience comprising investors, company directors and CEOs, philanthropists and other influential people from organisations such as Fonterra, Walmart, The Gates Foundation, as well as USAID, DFAT and even Google Food! 

“What is really exciting is the potential linkages and networks that I can develop; already Nasa are interested in our work​!”

The technology will also kill bacteria associated with food-borne illnesses, including salmonella and listeria.

Australia gets unified peak seafood body​

The formation of a single national peak body for Australia’s A$2.8bn (US$3.5bn) seafood industry has been completed with the appointment of the inaugural board.​

The announcement has been welcomed by the government of Malcolm Turnbull, whose Liberal predecessor, Tony Abbott, committed to provide A$535,000 to support its establishment ahead of the 2013 general election.

Since a prospectus was released last year to outline the new body’s role, pledges from close to 100 organisations and individuals worth a further A$644,460 have been received.

The chairman of the National Seafood Industry Alliance, a coalition of state fisheries bodies and other stakeholders, announced the board members of the new Seafood Industry Australia.

Johnathon Davey said the selection of “pro tem​" directors was critical for representing the interests of all seafood businesses across Australia. 

“I’m very excited to announce that a talented group of people with a diversity of skills and experience have been selected to lead the next phase of the work to form SIA​,” Davey said.

Anne Ruston, Australia’s federal agriculture minister, said the new body had “widespread industry support​” and would begin work once it selects a chairman and devises its constitution.

“Together with the Commonwealth Fisheries Association and state-based organisations, the SIA provides [Australian] governments at every level a united voice to advocate on behalf of the Australian seafood industry​,” she added.

Board members are: Marshall Betzel, Chauncey Hammond, Dennis Holder, Veronica Papacosta, Mark Ryan, Marcus Stehr and Belinda Wilson.

Rob Scoines appointed GM of Sanitarium NZ​

Sanitarium Health & Wellbeing operation has named Rob Scoines as its general manager in New Zealand.​

A Sanitarium insider, he has worked in the company’s HR and manufacturing departments in Australia and New Zealand. Most recently, he headed Sanitarium’s logistics in Australia.

“I enjoy a challenge and am motivated by Sanitarium’s purpose of sharing health and wellbeing​,” Scoines said in a statement.

“I see leadership as a privilege because it’s an opportunity to positively impact people as they grow and develop, while they in turn make a positive impact on the business and the community. Being the country’s number one breakfast food manufacturer offers us a unique opportunity to make a difference​.”

Sanitarium, which is owned by the Seventh Day Adventist church and is best known for its Weet-Bix breakfast cereal, achieved a turnover of NZ$150m (US$106m) in the last financial year.