Coles Liquor sales up 3.9 per cent to $41 million

Liquor sales at Coles have declined in the first quarter of FY23 by 4.3 per cent to $839m as the business cycles the COVID lockdowns from a year ago when sales were elevated. As customers return to bars, cafes and restaurants in greater numbers, liquor sales are returning to normal, says Coles.

Coles Group CEO, Steven Cain said, “Despite record levels of hospitality expenditure in Australia, we are pleased that a strengthening sales trajectory is being driven by improved availability, new value campaigns and the unwind of local shopping as consumer shopping behaviour normalises.

“Our commitment to providing trusted value, including Australia’s widest range of own brand products and the successful introducing of Dropped & Locked prices, is more relevant than ever with rising inflation placing pressure on many Australian households.”

Coles Liquor added ninety-four exclusive liquor brand products to its range this past quarter, an essential part of its strategy to be able to offer its consumers steady and affordable options this Christmas period. At least two of these brands have been recognised with significant awards. Tinnies Pale Ale won in its category at the World Beer Awards and Coles Liquor’s James Busby ‘Vineyard Series’ Tasmania Pinot Noir 2021 which retails for $30, winning Best Pinot Noir trophy at the Royal Adelaide Wine Show.

Coles Liquor also dropped prices of RTDs in Liquorland and First Choice with sales in this category continuing to be a key driver of growth and thirty new no and low alcohol products were added to the Coles Liquor range.

The quarter saw 58 Liquor banner renewals and seven new liquor stores (including the new Liquorland in Tasmania) completed while six stores were closed. Three hundred Liquorland stores have now been re-branded in black and white - a delight to the eyes - and there are now 934 stores in the Coles Liquor portfolio.

E-Commerce sales continues to grow for Coles and were up up 3.9 per cent to $41 million, even while cycling COVID lockdowns and penetration for liquor sales is now 6 per cent across Liquorland, BWS, First Choice and Coles Online.

Inflationary pressures are expected to continue with prices set to lift given the ongoing level of supplier CPI requests, increased logistics and fuel costs. The business continues to invest in technology and transformation across the group.