Woolworths Limited - proposed acquisition of Liquor Licence at Beverly Hills NSW

Summary

Woolworths Limited proposed to acquire a takeaway packaged liquor licence and associated assets (trading as "Cellarbrations") in Beverly Hills, NSW

Market definition

The proposed acquisition was assessed within the context of the following markets:

1. The local market for the retail sale of packaged liquor for off-premises consumption. The geographic dimension is a 3-5km radius surrounding the target retail liquor business (Market 1) ; and

2. The New South Wales market for the wholesale supply of packaged liquor for subsequent sale in the retail market for off-premises consumption (Market 2).

Competition analysis

On 2 October 2008, the ACCC formed the view that the proposed acquisition was unlikely to substantially lessen competition in the relevant markets. Factors informing this conclusion included:

1. In relation to Market 1, although Woolworths already owned multiple packaged liquor outlets in the market, there were many other packaged liquor outlets in the market that will continue to compete with Woolworths post-acquisition.

2. In relation to Market 2, the ACCC considered that the proposed acquisition would not significantly diminish the market share or buying power of any independent wholesaler (or significantly increase the market share or buying power of Woolworths in the relevant market).