The ACCC has outlined preliminary competition concerns with Endeavour Group Limited’s proposed acquisition of the Rye Hotel in Rye, Victoria. These are published in a Statement of Issues today.
The Rye Hotel includes a hotel and adjoining independent drive-through liquor store operating under the ‘Thirsty Camel’ brand. Endeavour operates BWS Rye, the other major liquor store in the area.
The ACCC is concerned that the proposed acquisition would likely substantially lessen competition in the supply of takeaway liquor in the local Rye area.
“The BWS Rye and the Rye Hotel Thirsty Camel are the two largest liquor stores in the local area with a comparable size and product range, and are likely to be each other’s strongest competitors,” ACCC Commissioner Stephen Ridgeway said.
“We are concerned about this acquisition resulting in a substantial increase in Endeavour’s market share in the local Rye area.”
“Both local residents and holiday makers in the local area around the Rye Hotel benefit from competition between liquor stores. This competition helps ensure different product ranges, promotions and service levels continue to be available,” Mr Ridgeway said.
The ACCC is also considering the impact of the proposed acquisition on the competitiveness of other stores that operate under the Thirsty Camel banner and on the wholesale market for the supply of liquor.
The Statement of Issues can be found on the ACCC’s public register at Endeavour Group - Rye Hotel.
The ACCC encourages local consumers and holiday makers to complete the consumer survey by 6 October 2023. The survey can be found at Endeavour / Rye Hotel Consumer Survey.
The ACCC invites submissions in response to the Statement of Issues by 6 October 2023.
Background
Endeavour is a major Australian alcoholic drinks retailer and hotel operator that operates a portfolio of brands including BWS, Dan Murphy’s, Jimmy Brings, Shorty’s Liquor and Langton’s.
Endeavour also manages over 330 licensed hotels across Australia, through its subsidiary, ALH Hotels. Endeavour currently operates one BWS bottle shop in the local area, BWS Rye. BWS Rye is approximately 900 metres from the Rye Hotel by road and is located adjacent to Woolworths Rye.
The Rye Hotel is located in the bayside town of Rye on the Mornington Peninsula in Victoria. The building houses:
- on-premises food and beverage areas, including function rooms, live entertainment, TAB and gaming facilities,
- an attached drive-through bottle shop which trades under the Thirsty Camel banner, and
- beachfront accommodation.
Peninsula Cellars, trading under the Thirsty Camel brand, is also owned by the vendor but it does not form part of the proposed acquisition.