Lion in Australian liquor chain

Press, 27 November 1982, Page 19

Lion in Australian liquor chain

Lion Breweries. Ltd. through its subsidiary. New Zealand Wines and Spirits. Ltd. has played a leading role in the establishment of a new liquor marketing organisation to be launched in Australia early in 1983. Lion Breweries' interest of 14.9 per cent will cost the company about SNZS million. Announcing the move yesterday. Lion Breweries' newly appointed managing director. Mr Douglas Myers, said that the majority shareholder in the new company was Castlemaine Tooheys. Ltd. Australia's leading brewer. It had taken 50.1 per cent of the shares, International Distillers and Vintners. Ltd, of Great Britain, holding the remaining 35 per cent. Mr Myers claimed: "The new company would be the largest liquor marketing operation in Australia, handling a prime portfolio of spirits, liqueurs, imported

and domestic wines. Indeed this new company will be a parallel of the successful New Zealand wine and spirits operation here, which is a major reason for our involvement." A majority of the brands to be handled are currently marketed and distributed in Australia through Castlemaine Tooheys' subsidiary, Allied Vintners, Pty. Ltd, and International Distillers and Vintners, Ltd. wholly-owned subsidiary Gilbeys Australia Pty, Ltd. By combining the considerable marketing and servicing expertise of three major companies with a powerful brand portfolio, the new operation will offer the best agency arrangements in Australia. and the shareholders are confident that further major brand agencies will be attracted. Mr Myers said this would mean real benefits for New Zealand in that the new company would provide a

distribution opportunity for suitable liquor products sources from here. "CER is not something for the future, it is happening right now," declared Mr Myers. The company will operate independently but will have the advantage of a close commercial association with its shareholders, who can provide local and international support. Mr Myers pointed out that “this is not the first time the three companies have combined to form a new company. Their first joint venture was the purchase of the wine and spirits interest of the Challenge Corporation which is now named Tasman Wine and Spirits, a highly successful chain of 18 liquor wholesale stores primarily in the Wellington region. This follow-on venture expects turnover in the first year of operation to be more than $BO million, with sales in excess of 1.2 million cases.