Woolworths Limited - proposed acquisition of a dormant liquor licence in Tweed Heads, NSW.

Summary

Woolworths Limited proposed to acquire a dormant liquor licence that was attached to the premises at Shop 8, Panorama Plaza, Scenic Drive, Tweed Heads West. A Bottlemart store currently trading at that address under a different licence was NOT acquired, and will continue to trade under its current owners.

Market definition

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

1. the market for the retail sale of packaged liquor for off-premises consumption. The geographic dimension of this market is a 3-5km radius surrounding the target business; and

2. the NSW market for the wholesale supply of packaged liquor for subsequent sale in the retail market for off-premises consumption.

Competition analysis

On 16 July 2007, the ACCC formed the view that the proposed acquisition was unlikely to result in a substantial lessening of competition in the relevant markets. Factors informing this conclusion included:

- In relation to the first market, the ACCC concluded that post-acquisition, Woolworths Limited will be constrained by competition from at least seven independent bottle shops; and

- In relation to the second market, the ACCC considered that the the acquisition of one retail licence is unlikely to significantly increase Woolworths' market share (or buying power) or to substantially diminish the buying power of any competitor.