By Ian Neubauer
Australian Liquor Marketers (ALM) — the wholesaling arm behind Thirsty Camel, Cellarbrations and IGA Plus Liquor stores — has reported a 5.1 per cent increase in sales for the six months ended October 31.
Cellebrations was the star performer of the group, reporting 30 per cent sales growth, with IGA Plus Liquor also reporting 17 per cent growth.
Beer volumes across all three banner brands grew 28 per cent while spirit sales lifted 19 per cent. Sales of RTDs decreased 11 per cent in the period, which ALM attributed to April’s RTD tax hike.
Metcash CEO Andrew Reitzer, whose company owns ALM and the IGA grocery chain, attributed the result to competitive pricing and the tightening of business costs.
“Australian Liquor Marketers generated good sales growth. This was especially pleasing in view of the continued push by the two national chains to increase their share of the liquor retail market with very aggressive pricing,” he said.
“Another pleasing aspect of the result has been a 3.68 per cent cut to 64.3 per cent in the cost of doing business as a percentage of gross profit, as a result of supply chain improvements and our investment in facilities and technologies to lower the cost of warehousing and distribution.”
Reitzer said sales for November continued to be satisfactory despite the economic downturn.
“Whilst the trading environment remains volatile, given the company’s focus on selling everyday consumer essentials, no likely weakening is expected in the markets served by Metcash,” he said.