John Barakat, recently appointed to the new role of Executive General Manager, Retail, dives into the retail division of Metcash Liquor and why Independent Brands Australia (IBA) is set up for acceleration.
Q: There have been some changes within Metcash Liquor, can you share more?
Metcash liquor has a wholesale arm, Australian Liquor Marketers (ALM), which we believe is the engine room for much of the independent market and we have the retail pillar IBA, which drives value for our retailers and shoppers. ALM ensures that our independent customers are competitive with wholesale and logistics, while IBA is our banner network for shopper and retail competitiveness. Recently, we made the reporting lines for both ALM and IBA clearer to set up both pillars for success and demonstrate end-to-end focus.
Q: With a focus on IBA, what does this change mean for you and your team?
One of our key guiding principles is ensuring we are simpler to do business with. The IBA team is now end-to-end, from value creation to value delivery. We believe we will be able to accelerate IBA banners and their growth by increasing speed to market for retailers, retail development and clearer relationships for suppliers. Adrian Ricci in his newly created role as General Manager IBA, will continue to partner with our committees and retailers to execute the best store, right range and experience.
Q: Does this new focus impact any part of your existing retail strategy?
We believe this new focus will only help us deliver the strategy more efficiently and effectively. We are committed to driving brand equity and growth in the market with shoppers through shopper loyalty, technology and data, and the right promotional levers for conversion and trust.
Q: With shopper loyalty a key part of the strategy, how are the loyalty programs and shopper value being driven this year?
We have loyalty programs for Cellarbrations, The Bottle-O and Porters Liquor and we have more than 400 stores on board, making it the biggest loyalty program across independents when it comes to number of stores. Our loyalty member shoppers are rewarded with member prices in-store and points. A key focus of the coming year will be increasing the number of shoppers on the program and giving them more ways to interact.
We also have our shopper value platform, not only have we rewarded shoppers with hundreds of thousands of dollars in gift cards as we all face cost-of-living pressures, but we’ve also had countless stories of impact, including one winner who told us: “We never thought we’d be having a family holiday anytime soon”.
Q: What are the biggest challenges for liquor retailers right now?
We believe shoppers remain value-led and are making more conscious choices when it comes to wellbeing. For IBA it is ensuring we have the right range and offering for all our shoppers. Whether that be the right pack format driving value, ABV for moderation or those high tempo moments – it is ensuring we give shoppers choice with a local range.
This article originally appeared in the June-July issue of National Liquor News.