By Deborah Jackson, editor National Liquor News

Allen De Costa, the CEO of Independent Liquor Group (ILG) has told TheShout that the Co-operative will look to expand its reach throughout Australia, as the group reported a 15 per cent increase in revenue for 2016.

ILG has reported an increase in revenue to $372 million for 2016, which marks a $48m revenue increase compared to the previous year, split between Queensland which was up by $31m and NSW up by $17m.

Bottom line profit grew to $3.6m with amplified benefits returned to members in terms of rebates and money into price ahead by 10-15 per cent, and the Co-op reported net assets of $14.9m.

De Costa told TheShout that the net assets of $14.9m leaves the Co-op in a strong position for the future.

“This is my fifth year with ILG and the Co-operative continues to  grow and provide greater benefits to our members.

“This year’s outstanding sales and profit results are due to the hard work performed by all staff and members over the last five years.

"The members have a strong balance sheet with net assets of $14.9m. This will protect the Co-operative for many years to come.”

ILG's Townsville warehouse, opened on 1 March 2016, reached annualised sales of $25m in the first six months of trading and recorded profit in August and September. The property was purchased at $4.5m, with $1.7m paid off the principal as at May 2016 and the remainder $2.7m in June 2017.

De Costa added: “I am very proud that after just six months of opening our Townsville warehouse we are at breakeven stage and will soon be in profit."

The Townsville Warehouse was purchased in order to help ILG service the area from Rockhampton to north of Cairns, including the islands to the east and townships to the west. And ILG says that it is gaining great support from all suppliers with 98 per cent of all wine, spirits and premix offered at the same cost to members along the entire Eastern seaboard.

ILG’s tier one banners, Bottler and Super Cellars maintained dominance in NSW with more than 350 bannered stores as well as second rank in QLD with close to 200 stores.

De Costa told TheShout that the Co-op is looking to expand its operations to reach other regions and states throughout Australia in 2017.

“We are currently looking at further expansion opportunities throughout Australia as the Co-operative model serves its members in the most effective way.”

The Shout Team

The leading online news service for Australia's beer, wine, spirits and hospitality industries.

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