Endeavour Group - Rye Hotel

Summary

Endeavour Group Limited (Endeavour) proposes to acquire the business and assets of the Rye Hotel (the Target) in Rye, Victoria, from a family-owned business operated through the entity, Myndit Pty. Ltd. 

Endeavour is a major Australian alcoholic drinks retailer and hotel operator. It operates a bottle shop (BWS Rye) near the Rye Hotel. Rye Hotel consists of the hotel and an adjoining drive-through bottle shop which trades under the Thirsty Camel brand.

Market definition

The ACCC considered the effect of the proposed acquisition on:

• a local market for the retail supply of packaged liquor for off-site consumption in the area surrounding the Rye Hotel
• a market for chain-on-chain competition between retail liquor brands on a regional, state or national level
• a wholesale market for the supply of liquor and
• other markets in the local area surrounding the Rye Hotel including the provision of accommodation, liquor for on-site consumption, gaming and meals/entertainment.

It was not necessary for the ACCC to form a concluded view in relation to the precise scope of these markets.

Competition analysis

The ACCC concluded that the proposed acquisition is not likely to substantially lessen competition in any market in Australia.

In relation to competition for the local retail supply of packaged liquor, the ACCC had identified preliminary concerns in the Statement of Issues, but concluded that the proposed acquisition would not be likely to result in a substantial lessening of competition. Factors informing this conclusion included:

• the Rye Hotel Thirsty Camel is not strongly competitive on price or range, and mostly attracts customers due to the drive-through convenience, and
• consumers would continue to have access to different promotions, pricing, ranges and service offerings in the local area, including at two nearby Thirsty Camel branded stores, Peninsula Cellars and Tootgarook Fine Wine Cellars.

The ACCC also concluded that the proposed acquisition is unlikely to materially reduce the competitiveness of other stores that operate under the Thirsty Camel brand or weaken the overall strength of independent wholesalers.

The ACCC also found that the proposed acquisition is unlikely to materially reduce competition in relation to other markets for the provision of accommodation, liquor for on-site consumption, gaming and meals/entertainment in the local area surrounding the Rye Hotel.