Woolworths Limited - proposed acquisition of Barossa Cellars


  • Woolworths Limited


  • Barossa Cellars


Woolworths proposed to acquire a retail liquor licence which currently trades as Barossa Cellars and is located at 278 Railway Parade, West Leederville, WA.

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

Competition analysis

On 27 September 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 Coles and a substantial number of independent bottle shops in the local area; and

- In relation to the second market, the ACCC considered that Woolworths' relatively small increase in market share as a result of the acquisition was unlikely to significantly increase Woolworths' buying power or to substantially weaken any competing wholesaler by diminishing its buying power.


17/09/2007ACCC commenced review under the Merger Review Process Guidelines.
24/09/2007Closing date for submissions from interested parties.
27/09/2007ACCC announced it would not oppose the proposed acquisition.