In its financial statements, the company reconfirmed its decision to wind down its New Zealand wholesale liquor operations, following a strategic review and stakeholder consultation process.<\/p>\n
The Herald first reported in July<\/a> that Tasman Liquor was consulting employees about exiting the New Zealand market.<\/p>\n Tasman Liquor employed about 100 people across what its website described as \u201cfive low-cost distribution centres\u201d.<\/p>\n Tasman Liquor was also a prominent supplier to the hospitality industry.<\/p>\n At the time, a Metcash spokesperson said a sustainable and viable long-term solution for the wholesale arm of the business had not been identified after exploring alternatives over the past few years.<\/p>\n \u201cThe review found that the wholesale business faces ongoing challenges including New Zealand\u2019s preference for a direct-to-store supplier model, significant capital investment requirements and limited opportunities to realise the growth required to improve profitability,\u201d the spokesperson said.<\/p>\n \u201cWe have begun winding down the wholesale liquor business with a view to exiting by December 2026. Our Wellington warehouse will cease servicing customers on September 11, while our Auckland and Christchurch warehouses will cease servicing customers on October 23,\u201d the spokesperson said.<\/p>\n Tasman Liquor\u2019s management said they were still assessing the financial impact of the business wind-down and could not reliably estimate its effect due to the timing and uncertainty of related events.<\/p>\n Speaking to the result, a Metcash spokesperson said excluding the loan which was forgiven, profit for the business fell by roughly 12% despite revenue increasing.<\/p>\n The spokesperson also confirmed that the retail side of the business has historically been more profitable than the wholesale side.<\/p>\n Metcash is Australia\u2019s leading wholesale distribution and marketing company with a diversified business across food, grocery, hardware and liquor sectors.<\/p>\n Brands owned by the group include supermarket chains IGA and Foodland, liquor brands Cellarbrations and the Bottle-O, and the Australian operation of Mitre 10, which is independent of Mitre 10 New Zealand.<\/p>\n The group\u2019s operations in New Zealand represent less than 5% of revenue, results and assets of the wider group, with most of its business focused on Australia.<\/p>\n