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Jonotr0n

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29/04/21

14:13

Post #: 52814350
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Originally posted by steve10: ↑

I have been reading the recent MTS Investor & Trading Update as it is good to know what the big players are doing.

The update mentions that ALM is the second largest player in Australian Liquor market. They supply about 90% of independent liquor stores in Australia & have large supply agreements with contract customers in Retail & 'On Premise' segments.

ALM (Australian Liquor Marketers) supplies ~12,000 hotels, liquor stores, restaurants & other licensed premises throughout Australia and NZ.

ALM also provides wholesale supply to large and small contract banner groups, un-bannered liquor stores, on-premise and eCommerce retailers.

Cost effective and efficient route-to-market through our network of 14 DCs.

On-premise sales adversely impacted by rolling lockdowns and restrictions in Australia and shutdowns in NZ.

Impacted on-premise customers supported through enabling return of stock, payment plans and re-opening deals. On premise in recovery phase.

Here is where things start to get interesting.

They mention looking for growth via significant and largely untapped opportunity in digital.

47 suppliers and ~1900 venues in new Agora platform (Digital communication platform for ‘on-premise’ industry). https://alm.pontoonx.io/#/

MFuture initiatives going foward:
- eCommerce – whole of network solution to drive sales for retailers and ALM
- Partner with key suppliers to realise supply chain efficiencies
- ‘One Delivery, One Invoice’ route-to-market freeing retailers to focus on customers
- Development of ‘ALM Buying Portal’ technology

Digital sales growing rapidly in all our markets, accelerated by COVID. They mention that the Australian Liquor Market size will be $18B & $1.8B will be via online by 2024. They mention that going digital will future proof the business & protect market share.

Their plan:
- Our retailers are well positioned to compete in digital with the locations, customers, strong well-known brands, infrastructure and scale
- Proven ‘off the shelf’ technologies are now available that lower development cost and increase ‘speed to market’.
- They are now seeking digital solutions and we have the opportunity to work with our retailers to address this significant opportunity.
- The ‘last mile’ obstacle is now removed with many new providers available to do this for you, makes this more competitive and economic.
- This requires Metcash to invest in expanding its digital capability to deliver these solutions in our Pillars and at Group level.

METCASH DIGITAL ACCELERATOR
Investment in Group-wide Digital capability to expedite and improve our digital delivery across the Group.
New ways of working with cross-functional, agile, empowered teams – proven methods to accelerate digital solutions.

Additional investment in digital at Group level to support, accelerate and enhance returns <$15m
• Further investment by Pillars of ~$50m, giving total digital investment of ~$65m (FY21-FY24)

We'll wait & see if ALM will partner with DW8 in an effort to lower development cost & increase 'speed to market'. Possibility of blueprints merging together.

Expand

So if a hotel/club/restaurant has a supply agreement with a large player does that mean that premise would be reluctant to test out Wine Depot Marketplace from fear of upsetting the supplier or breaking a contract?

DW8 Price at posting: 14.5¢ Sentiment: Buy Disclosure: Held
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