The ACCC has published a Statement of Issues outlining preliminary competition concerns with Endeavour Group Limited’s proposed acquisition of the Prince Consort Hotel in Brisbane’s Fortitude Valley.
The Prince Consort Hotel includes a hotel and associated liquor store, Prince Cellars, that operates under the ‘Fleet Street’ banner. Endeavour already operates two liquor stores within 300 metres of Prince Cellars: BWS Valley Central and BWS Fortitude Valley.
The ACCC is concerned that the proposed acquisition would be likely to substantially lessen competition in the supply of takeaway liquor in the local Fortitude Valley area.
“We are concerned that this acquisition will remove the strongest and closest independent competitor to the two nearby Endeavour-owned BWS stores in the local area,” ACCC Commissioner Stephen Ridgeway said.
The entertainment district of Fortitude Valley is characterised by heavy pedestrian traffic and limited parking options. This acquisition will result in three Endeavour-owned liquor stores within a short walking distance of each other, with limited alternatives for pedestrians.
“Local residents and visitors to Fortitude Valley benefit from competition between liquor stores, including different product range, trading hours, pricing and promotions and store quality,” Mr Ridgeway said.
The ACCC is also considering the impact of the proposed acquisition on the competitiveness of other stores that operate under the Fleet Street banner, the impact on the market for the wholesale supply of liquor, and the impact on the supply of hotel and hospitality products and services.
The Statement of Issues can be found on the ACCC’s public register: Endeavour Group Limited - Prince Consort Hotel.
The ACCC invites submissions in response to the Statement of Issues by 25 January 2024.
Background
Endeavour is a major Australian alcoholic drinks retailer and hotel operator that operates over 1,700 retail liquor stores under the BWS and Dan Murphy brands, as well as online sites Jimmy Brings and Langton’s, wineries under Paragon Wine Estates and as a corporate liquor supplier under Shorty’s Liquor. Endeavour also manages over 330 licensed hotels across Australia, through its subsidiary, ALH Hotels.
Endeavour currently operates nine liquor stores within a 1.5km radius of Prince Cellars. BWS Valley Central is approximately 130 metres from Prince Cellars, and BWS Fortitude valley is approximately 230 metres from Prince Cellars. Endeavour also operates two hotels within two kilometres of Prince Cellars, the Brunswick Hotel and Hello Gorgeous.
The Prince Consort Hotel is located in the entertainment precinct of Fortitude Valley in Queensland.
The hotel offers:
- on-premises food and beverage consumption, live music and entertainment, gaming and wagering, function services and retail liquor
- an associated bottle shop (Prince Cellars), and
- studio rooms and office suites.
Prince Cellars operates under the Fleet Street banner owned by the Independent Liquor Group, which also operates Super Cellars and Bottler banners.
Figure 1: Local area map around Prince Cellars – 1 km and 1.5 km radius
