Liquorland (Qld) Pty Ltd - proposed acquisition of Hotel HQ and three detached bottleshops

Summary

Liquorland (Qld) Pty Ltd (Liquorland), part of Coles Group Ltd, proposes to acquire Hotel HQ (Kuraby Hotel) in Underwood Qld, as well as three detached bottle shops: Station Road Cellars in Woodbridge, Centrepoint Cellars in Woodbridge and Mt Warren Park Cellars in Mt Warren Park.

Market definition

This proposed acquisition was assessed within the context of the following markets:

1. A local market for the retail sale of packaged liquor for off-premises consumption. The geographic dimension is a 3-5 kilometre radius surrounding Hotel HQ, which includes Centrepoint Cellars and Station Road Cellars (Market 1).

2. A local market for the retail sale of packaged liquor for off-premises consumption. The geographic dimension is a 3-5 kilometre radius surrounding Mt Warren Park Cellars (Market 2).

3. A local market within a 3-5 kilometre radius of Hotel HQ for the sale of liquor for on-premises consumption, gaming and live music (Market 3).

4. The Queensland market for the wholesale supply of packaged liquor for subsequent sale in the retail market for off-premises consumption (Market 4).

Competition analysis

On 7 March 2008, the ACCC formed the view that the proposed acquisition was unlikely to substantially lessen competition in the relevant markets. Factors informing this conclusion included:

1. In relation to Markets 1 and 2, Liquorland will continue to face significant competition, from both Woolworths and independently owned outlets.

2. In relation to Market 3, there will continue to be a significant number of competing hotels venues near Hotel HQ which are likely to impose a competitive constraint on the target business.

3. In relation to Market 4, the ACCC considered that the proposed acquisition was unlikely to significantly affect the market share or buying power of Liquorland in the Queensland wholesale market.