Coles Group is pushing for a combined front across its liquor sales, rebranding a number of its Vintage Cellars and First Choice storefronts to Liquorland bottle shops, which the company states has greater recognisability across the country.
Beginning in November, the pilot program will rebrand nine stores across South Australia, Victoria, and Queensland – with Vintage Cellars being converted to Liquorland Cellars, and First Choice Liquor Markets to become Liquorland Warehouses. If the trial is a success, Coles plans to roll it out Australia-wide.
Coles Group reached a two-year high in FY24, reporting an 8.2 per cent rise in earnings to $3.65 billion and a 4.4 per cent rise in revenue to $43.7 billion. Supermarket earnings rose 10.5 per cent, to $3.5 billion, and profit increased 8.3 per cent, to $1.1 billion.
However, the company’s liquor sales profit increased only 0.5 per cent, rising to $3.7 billion. FY24 marks the lowest growth year in over 30 years for the company's liquor category, as customers grapple with the increased cost of living.
Coles Group head of liquor, Michael Courtney, said the current market conditions required the company to strengthen its offerings, and focus on its customer base. As the three brands are differentiated by price and promotions, the rebrand will allow Coles to have consistent marketing strategies.
“It allows us to move to one loyalty program across all three of the banners,” said Courtney.
“We’re confident that in terms of making this change it will lead to not only a stronger Liquorland, but also that it will lead to more customers in our current First Choice Liquor Market and Vintage Cellars locations.”
In February, Coles Liquor acquired 20 bottle shops from Federal Group in Tasmania, including hotel attached and stand-alone stores, where previously the company only had two Liquorlands in the state. This brings the total number of liquor stores to over 990 across the country, with the majority being Liquorlands.
The rebranded stores will share a core range of products, introducing products based on customer relevance. Liquorland Cellars will target upmarket shoppers, while Liquorland Warehouse will be the largest format, and carry the widest range.
