Endeavour Group’s proposed acquisition of the Beachfront Hotel red flagged by ACCC
A red flag has been raised over Endeavour Group’s bid to buy a pub in Darwin’s northern suburbs.
The Australian Competition and Consumer Commission (ACCC) fears the purchase could lead to Endeavour Group, which operates Dan Murphy’s and BWS, establishing a monopoly in the local area.
The $12.4 billion Endeavour Group has bid for the Beachfront Hotel in Darwin’s Rapid Creek, which includes a sports bar, a gambling room, and a Cellarbrations bottle shop.
The ACC has been investigating the matter since July and is concerned about the adjoining drive-through bottle shop which Endeavour, already owns.
Endeavour is Australia’s largest drinks retailer and hotel operator, with over 330 licensed venues. The closest bottleshop to the Beachfront Hotel is the BWS store in Nightcliff.
The ACCC believes the acquisition would eliminate its biggest local competitor.
“We are concerned that this proposed acquisition is likely to substantially lessen competition in the supply of takeaway liquor in the local area,” ACCC Commissioner Liza Carver said.
Endeavour already operates four liquor stores within a five-kilometre radius of Beachfront Hotel.
“The proposed acquisition would remove an independent competitor which is able to offer a different price/value proposition and range to Endeavour’s standardised BWS offer,” the statement said.
“As a result of the removal of competition from the Beachfront Hotel Cellarbrations, customers in the local area are likely to be disadvantaged by a reduction in choice of packaged liquor, may be faced with a lowering of service levels and site amenity, and may face less price competition, especially in relation to differentiated promotional activity.”
Reduced brand awareness is a further concern.
The ACCC has called for submissions from interested parties addressing whether the acquisition would lessen competition.
“In particular, we are seeking your views on, how closely Endeavour’s hotels and bottle shops compete with Beachfront Hotel; the availability of other hotels and bottle shops in the area, and whether Endeavour’s increased size would impact the acquisition of liquor products at the wholesale level,” the ACCC stated.
Submissions close at 5pm on 16 January. A final decision is expected by 9 March.
A spokesperson for Endeavour Group said it was working constructively with the ACCC.
“The Beachfront Hotel is a well-established, premium venue, popular with families, locals and tourists. It is an iconic pub and an important part of the local community,” the spokesperson said.
“If the ACCC were to approve the transaction, we would look forward to working with the existing team and community to build on the pub’s popularity while maintaining the qualities that make it so well-loved today.”
Jonathan Jackson - 13-12-22
