Liquor Store Business Valuation

The liquor store industry in Australia has gone through a lot of interesting changes over the last few decades. This has been brought about by a changing society and numerous legislative amendments introduced over the years. Another major factor in the changes to the liquor store industry has been the influence of the large publicly listed companies (e.g. Woolworths and Coles).

The liquor store industry is a mature industry but has been helped significantly by drink-driving laws and the preference for new packaged drinks (e.g. mixed spirits) by the 18-30 year-old age group.

Drink-driving laws caused the proportion of liquor sold over the bar at hotels to fall significantly. People now buy more packaged alcohol to drink at home. Also, the swing away from beer to wine has accentuated this movement to packaged alcohol as most wine sales are packaged.

Independent liquor stores fall into two categories. In the past, the bulk of liquor stores were independent stand-alone operators. However, the number of these liquor stores has fallen significantly as they have joined buying or marketing groups. This became necessary to obtain exposure in the marketplace and to compete on price with the two major players.

The bottle shop and supermarket stores generally differ somewhat from the stand-alone liquor stores. In general, these liquor stores have a limited range of alcohol, concentrate on high turnover products, have limited service, and compete on price.

Stand-alone liquor stores generally survive the best on convenience; have a wide range of products and importantly product knowledge and service. One of the major advantages of any liquor store is its location.

Read other articles

Rent Roll Valuations

Rent roll valuations are one of the most common valuations done by Business Valuer Network members. We value many real estate practices each year and have a broad database of

Real Estate Agency Business Valuation

Real estate agents often sell their business or sell the rent roll which forms part of their real estate agency business. They sell their rent roll because they take the

Trades Business Valuation

Trades businesses are commonly bought and sold in Australia, but with some difficulty and at low price-earnings multiples. Why? Well, there are some barriers to entry to ownership of a

Medical Business Valuation

Medical businesses are a specific niche area of business valuation and there are very few business valuers in Australia who specialise in medical. Businesses which are deemed to come under

Cafe Business Valuation

Cafes are one of the most popular business categories in Australia. There are thousands of cafes sold every year. They are sold in such numbers because there are so many,

Mortgage Broker Business Valuation

Mortgage brokers have enjoyed a decade of prosperity in Australia with a booming housing construction market together with handsome trailing fees being paid to mortgage brokers by the banks and


The contents do not constitute legal advice, are not intended to be a substitute for legal advice, and should not be relied upon as such for any purposes. You should seek legal advice or other professional advice in relation to any particular matters you or your organisation may have.