1 00:00:00,040 --> 00:00:02,640 Speaker 1: We know that the A Triple C has well backflipped 2 00:00:02,640 --> 00:00:06,760 Speaker 1: on its concerns about Endeavor Group acquiring the Beachfront Hotel 3 00:00:06,880 --> 00:00:11,440 Speaker 1: in Rapid Creek, which currently operates under the Celebrations banner. Now, 4 00:00:11,520 --> 00:00:14,640 Speaker 1: after conducting consultation, it has found that there'd be no 5 00:00:14,880 --> 00:00:19,600 Speaker 1: adverse impacts when it comes to competition independent operators and 6 00:00:19,640 --> 00:00:22,720 Speaker 1: the like and the supply of takeaway grog. Now joining 7 00:00:22,760 --> 00:00:25,680 Speaker 1: me on the line to explain the decision further is 8 00:00:25,760 --> 00:00:29,040 Speaker 1: Mick Keo, who is the A Triple C Acting chair. 9 00:00:29,120 --> 00:00:33,120 Speaker 1: Good morning to you, Meck, good morning. Now tell me 10 00:00:33,880 --> 00:00:37,240 Speaker 1: what were the A Triple C's initial concerns. 11 00:00:38,479 --> 00:00:43,199 Speaker 2: Well, we had two concerns. One is in relation to 12 00:00:43,320 --> 00:00:54,240 Speaker 2: the local market for takeaway alcohol. The outlet, the Celebrations 13 00:00:55,800 --> 00:01:00,720 Speaker 2: outlet associated with the Beachfront Hotel is a very big 14 00:01:00,760 --> 00:01:04,680 Speaker 2: outlet and we were concerned that Endeavor, who were purchasing it, 15 00:01:05,240 --> 00:01:10,080 Speaker 2: also owns several other outlets in the area and therefore 16 00:01:10,160 --> 00:01:13,959 Speaker 2: that might lead to a reduction in competition. The second 17 00:01:14,000 --> 00:01:17,400 Speaker 2: issue that was of concerns in relation to the wholesale 18 00:01:17,480 --> 00:01:23,560 Speaker 2: market and whether the removal of Endeavor Beachfront, sorry, the 19 00:01:23,640 --> 00:01:29,039 Speaker 2: removal of Beachfront from the existing wholesale which is a 20 00:01:29,120 --> 00:01:33,560 Speaker 2: met cash operation, whether that would adversely affect the overall 21 00:01:33,600 --> 00:01:38,520 Speaker 2: wholesale market in Darwin. So they were both considerations that 22 00:01:38,640 --> 00:01:40,160 Speaker 2: we had to look into. 23 00:01:40,600 --> 00:01:44,280 Speaker 1: And so what consultation or investigation then was done to 24 00:01:44,360 --> 00:01:45,440 Speaker 1: make you change your mind. 25 00:01:47,480 --> 00:01:54,360 Speaker 2: We heard from quite a few consumers and participants around Darwin. 26 00:01:54,480 --> 00:02:00,680 Speaker 2: We also had staff visit the outlets and we got 27 00:02:00,800 --> 00:02:07,920 Speaker 2: a fairly detailed data regarding their sales as well, so 28 00:02:07,960 --> 00:02:12,720 Speaker 2: that putting all those together gave us a much better 29 00:02:12,800 --> 00:02:17,919 Speaker 2: picture of what the market looks like in Darwin more generally, 30 00:02:17,960 --> 00:02:23,200 Speaker 2: but also specifically in the suburbs around Beach Front, and 31 00:02:23,320 --> 00:02:27,240 Speaker 2: that sort of reassured us that there was a reasonable 32 00:02:27,240 --> 00:02:30,840 Speaker 2: amount of competition there and this wouldn't dramatically change that 33 00:02:31,000 --> 00:02:31,960 Speaker 2: level of competition. 34 00:02:32,480 --> 00:02:35,359 Speaker 1: So even though I suppose, as you've touched on, they 35 00:02:35,360 --> 00:02:38,040 Speaker 1: do have a number of other outlets, you don't feel 36 00:02:38,080 --> 00:02:40,880 Speaker 1: as though it's going to have a big impact on competition. 37 00:02:42,040 --> 00:02:45,280 Speaker 2: Within the five kilometer zone that we typically focus on. 38 00:02:45,520 --> 00:02:51,840 Speaker 2: There was two other quite large takeaway alcohol outlets. There's 39 00:02:51,880 --> 00:02:55,720 Speaker 2: also four or five other smaller ones. When it comes 40 00:02:55,800 --> 00:03:01,280 Speaker 2: to drinking in the pub itself, there's two or three others, 41 00:03:01,320 --> 00:03:06,280 Speaker 2: including sports clubs and others that will also provide competition. 42 00:03:06,440 --> 00:03:10,040 Speaker 2: So although Endeavor does have several other outlets not too 43 00:03:10,080 --> 00:03:14,880 Speaker 2: far away, we still felt with enough competition there that 44 00:03:15,200 --> 00:03:18,320 Speaker 2: it won't be harmed by this particular transaction. 45 00:03:18,840 --> 00:03:21,239 Speaker 1: So do you foreesee that there will be sort of 46 00:03:21,280 --> 00:03:26,840 Speaker 1: any flow on effects of independent operators stemming from the change. 47 00:03:27,919 --> 00:03:33,160 Speaker 2: No, There's still a large number of independent operators in Darwin, 48 00:03:33,360 --> 00:03:36,080 Speaker 2: and some of them are aligned to different liquor outlets, 49 00:03:36,120 --> 00:03:41,120 Speaker 2: so they're different branded in different ways. But certainly the 50 00:03:41,160 --> 00:03:44,839 Speaker 2: evidence we have is there's enough of them. There are 51 00:03:44,960 --> 00:03:51,360 Speaker 2: some unique issues in the territory due to a couple 52 00:03:51,440 --> 00:03:54,720 Speaker 2: of laws. One is the law that limits the amount 53 00:03:54,760 --> 00:04:00,720 Speaker 2: of proceeds that a grocery retailer, for example, can pick 54 00:04:00,800 --> 00:04:03,720 Speaker 2: up from alcohol, and the other is the minimum pricing 55 00:04:03,800 --> 00:04:06,720 Speaker 2: requirements of the types of alcohol. So we had to 56 00:04:06,760 --> 00:04:09,560 Speaker 2: have a look at those as well. But again we 57 00:04:09,640 --> 00:04:13,760 Speaker 2: came to the conclusion that in this particular situation, even 58 00:04:13,800 --> 00:04:17,040 Speaker 2: though it is a pretty significant outlet, there is still 59 00:04:17,400 --> 00:04:21,120 Speaker 2: good competition in the area and therefore we didn't oppose it. 60 00:04:22,120 --> 00:04:25,000 Speaker 1: What does the change mean for the beachfront venue itself? 61 00:04:25,120 --> 00:04:26,960 Speaker 1: Or is it just going to affect the bottle shop. 62 00:04:28,920 --> 00:04:33,440 Speaker 2: It shouldn't make well, it's up to the buyer whether 63 00:04:33,480 --> 00:04:37,080 Speaker 2: they want to, for example, revamp or upgrade the Beachfront itself. 64 00:04:37,680 --> 00:04:41,760 Speaker 2: In terms of the bottle shop, it will probably be rebranded, 65 00:04:43,040 --> 00:04:48,919 Speaker 2: but basically it would continue on as it has in 66 00:04:48,920 --> 00:04:52,120 Speaker 2: the past, from what the new owners told us. 67 00:04:52,000 --> 00:04:55,080 Speaker 1: And so obviously the Ahrible C is not opposing now 68 00:04:55,120 --> 00:04:58,760 Speaker 1: and DEVA group proposed their acquisition of the Beachfront hotel, 69 00:04:59,080 --> 00:05:01,000 Speaker 1: do you have any idea where and exactly that's now 70 00:05:01,040 --> 00:05:01,960 Speaker 1: going to take place. 71 00:05:03,279 --> 00:05:06,920 Speaker 2: No, that's up to the vendor and the purchaser become 72 00:05:06,960 --> 00:05:11,000 Speaker 2: to their own commercial arrangements. It was a condition on 73 00:05:11,480 --> 00:05:16,440 Speaker 2: the transaction that we gave approval, so that step has 74 00:05:16,480 --> 00:05:20,400 Speaker 2: now occurred and it's really up to the participants in 75 00:05:20,480 --> 00:05:23,000 Speaker 2: the deal to work out what happens next. 76 00:05:23,680 --> 00:05:27,039 Speaker 1: Well, Acting Chair of the A Triple C, Mick Keo, 77 00:05:27,160 --> 00:05:29,159 Speaker 1: we really appreciate you having a quick chat with us 78 00:05:29,200 --> 00:05:31,080 Speaker 1: this morning. Thanks so much for your time. 79 00:05:31,760 --> 00:05:33,360 Speaker 2: No problems at all. Thank you.