ACCC flags competition worries over Endeavour acquisition

The news: The ACCC has outlined competition concerns with Endeavour Group's proposed acquisition of the Rye Hotel in Victoria, saying it would likely substantially lessen competition in the supply of takeaway booze in the local area.

The numbers: Endeavour operates a portfolio of brands including BWS, Dan Murphy’s, Jimmy Brings, Shorty’s Liquor and Langton’s. Endeavour also manages over 330 licensed hotels across Australia, through its subsidiary, ALH Hotels. Endeavour currently operates one BWS bottle shop in the local area, BWS Rye, which is approximately 900 metres from the Rye Hotel by road and is located adjacent to Woolworths Rye.

The context: The ACCC is also considering the impact of the proposed acquisition on the competitiveness of other stores that operate under the Thirsty Camel banner and on the wholesale market for the supply of liquor.

What they said: “The BWS Rye and the Rye Hotel Thirsty Camel are the two largest liquor stores in the local area with a comparable size and product range, and are likely to be each other’s strongest competitors,” ACCC Commissioner Stephen Ridgeway said.

“We are concerned about this acquisition resulting in a substantial increase in Endeavour’s market share in the local Rye area."