Woolworths Limited - proposed acquisition of Liquor Licence in Kurri Kurri NSW

Summary

Woolworths Limited proposed to acquire the takeaway packaged liquor licence and goodwill associated with the Kurri Liquor Barn and Fine Wines retail liquor outlet, located in Kurri Kurri NSW.

Market definition

The proposed acquisition was considered in the context of two markets:

1. The local market for the retail sale of liquor for off-premises consumption, with a geographic dimension of 3-5km surrounding the target liquor outlet. (Market 1)

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

Competition analysis

On 1 December 2008 the ACCC formed the view that the proposed acquisition would be unlikely to substantially lessen competition in the relevant markets. Factors informing this conclusion were:

Market 1
Woolworths does not currently own any takeaway packaged liquor outlets in the relevant market and so the proposed acquisition would result in a bare transfer of market share and no aggregation of market power in the local retail market. After conducting market inquiries staff formed the view that Woolworths would also likely continue to be constrained by a number of other retail liquor outlets in the relevant market.

Market 2
After conducting market inquiries, the ACCC considered that the proposed acquisition would not significantly increase Woolworths' buying power or substantially weaken any competing wholesale purchaser by diminishing its buying power