ALM CEO Chris Baddock talks record sales, successful retail and the drinks industry post-COVID

On the heels of another record year of sales for Metcash, Chris Baddock, CEO of Australian Liquor Marketers (ALM), a division of Metcash, talks on keys strategies for their FY23 triumphs, insights in championing successful independents and the the future outlook for the drinks industry. 

Guest speaking at a networking breakfast hosted by the Drinks Association on a grey morning at Sydney's Kirribilli Club, Baddock, who has over 20 years' experience in the drinks industry, said: "We've had a stellar year as a group across our hardware, food and liquor business."

Unprecedented gains for liquor during the pandemic had shareholders and analysts concerned that the kick from COVID was over this year, leaving everyone wondering if the customers gained over the past three years would stick around for more. 

Revenue growth of 8.3 per cent suggests the customers are here for the long haul, with Baddock confident there's more growth to come, gaining loyalty with consumers "because they like what they see, they liked the range, they liked the fact that when they walk into the store, they have the same person behind the counter and generally, it's the owner of the store," he said. 

Metcash's liquor revenue grew to 8.3 per cent this year. "It's the first time we've been over $5 billion," said Baddock. "To give you an indication of just how much we've grown. That was $3.6 billion four years ago when I started in this business."

Looking ahead, he said: "The market is tough. There's no doubt about it. Interest rates have gone through the roof. We don't know what this economy is going to bring. Inflation hit us last year. How quickly is that going to run out? How much do we have to tighten monetary policy to slow down that inflation in the economy? We really don't know. 

"My only advice to people in the room who are worried about what's happening in the economy is to look after the things you can look after. That's the only thing you can do. 

"If you spend your energy thinking about things that you can't control, guess what, you won't be able to control it, and other things will go by the by," he said. 

In a time when consumers are seeking value for money, Baddock said engaging your customers and pricing according to the current market is critical. 

"One thing that I didn't think I'd ever see - cask wine is in growth. If that's not an indication that the consumer is looking for value, then I don't know what is," he said.  

Knowing what your business is at its core and your purpose and passions are is critical to moving forward with purpose and creating a company that isn't just good but great, said Baddock.

For ALM, the purpose is clear. "We are truly passionate about championing successful independents," said Baddock, who clarified what he classifies as "successful". 

"They're the ones who believe in retail standards and believe that the customer is number one. They're the ones who don't sit behind the counter and wait for the customer to come in. They're the ones who believe in the best store in town and make sure that they invest in their store. 

"They train their people. They believe in the partnership. They listen to suppliers, and they work on their business every day, and that's what championing successful independents means to us," he said. 

Once your vision is sorted, everything else falls into place, including strategy, which for ALM is "pretty damn simple," said Baddock, as he outlined their famous, frictionless and sticky approach. 

"Sticky in regards to the retailer not being able to leave us because we offer them so much, and therefore, they can offer the consumer so much," he said.

Concluding with a note on leadership as the head of Australia's largest broad-range wholesaler, Baddock said if suppliers focus on partnerships, they're sure to be successful. 

"The best of the best suppliers talk we/us/our," he said. "If you can get your leadership and those leaders in the room to think like that, you'll have an amazing business with the independents, and you'll probably go okay with the others too," he concluded. 

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