Metcash loses Queensland liquor contract with Woolies

Posted by Editorial on 9th September 2009

Metcash today announced that its liquor division, Australian Liquor Marketers, would cease supplying Woolworths subsidiary ALH Group in Queensland when its existing supply contract ends on 30 June 2010. The widely expected move comes following Woolworths’ commissioning of a distribution centre in Queensland to service its own supply requirements.

It will lead to a loss in sales for FY 2011 of around $420 million for Metcash.

“We have made no secret of the fact that Woolworths would eventually look to service its Queensland liquor business via its own distribution solution,” Chief Executive of Metcash, Mr Andrew Reitzer, said. ” While the loss of the Woolworths volume will have a financial impact on the ALM business and Metcash Group in our 2011 financial year, we have already commenced strategic initiatives to replace some of the lost volume and reduce costs accordingly.”