Metcash, Bottle-O consider exit from New Zealand

Metcash, the franchise operator of Bottle-O in New Zealand, is considering a complete withdrawal from the market.

Some 110 Bottle-O locations are currently in operation in New Zealand, but a spokesperson for Metcash told the New Zealand Herald that it has formally entered into consultation over the exit of not just Bottle-O, but its Liquor Centre and Tasman Liquor Company operations.

These operations combine to account for around 370 stores in the country.

It comes after Metcash told investors in its recent full-year financial report that operations in New Zealand represent less than 5 per cent of Metcash’s total revenue and assets. The ASX-listed wholesaler also operates Cellarbrations and IGA Liquor in its Australian independent brands liquor portfolio.

Metcash originally entered the New Zealand wholesale liquor market in July 2002 when its liquor division, Australian Liquor Marketers, acquired Allied Liquor. Bottle-O was then launched in 2007 in New Zealand; the parent company went on to acquire the Liquor Centre group in 2020 to expand its operations.

The wholesaler’s wider liquor division accounts for more than $6.4 billion in revenue each year. Despite occupying nearly one-third of the Australian liquor market, Metcash’s presence in New Zealand falls far behind the likes of Foodstuffs and Woolworths.