Woolworths and Coca Cola Amatil

How Can Independent Liquor Businesses Compete Against This?

It’s Christmas time 2016.  Nothing was stirring… except the chatter in back rooms between massive market controlling companies Coca Cola Amatil and Woolworths.

There is much talk currently under way in the liquor industry about how independent family run liquor businesses can compete with the supermarket giants Coles and Woolworths.

Both supermarket chains have been heavily fined by the ACCC in the past for deceptive conduct, misleading conduct and anti-competitive behaviour.  But there is another insidious way that Woolworth’s Dan Murphy is reducing competition.

Woolworths colludes with major liquor suppliers such as Coca Cola Amatil to retail a similar but actually much better product for the same or lower price.

Ok so lets play a game of Spot the Difference.

A Maker’s Mark Bourbon Gift Pack supplied to Woolworths by Coca Cola Amatil

Maker's Mark Gift Pack Woolworths
Maker’s Mark Gift Pack Woolworths

A Maker’s Mark Bourbon Gift Pack supplied to Independent Liquor Retailers by Coca Cola Amatil

Maker's Mark Gift Pack Independent Liquor Retailers
Maker’s Mark Gift Pack Independent Liquor Retailers

Notice the difference?  If you said the Woolworths pack had an extra glass and spoon, you would be right.

So whats the problem?  Both packs cost the same.  Really?  How can that be when one has an extra glass and spoon.  How can the cost be the same?

But that’s not the real problem.

The real problem is the better pack was ONLY available to Woolworths.  Poor independents who now retail less than 10% of all liquor in this country got the “povo pack”!

That’s not fair.  It’s un-Australian.  That’s not helping the under dog. It goes part of the way to explain Woolworth’s growing stranglehold on the liquor industry.  Dodgy back room deals between giant companies!

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