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Corporate Australia has had its second win over the consumer watchdog in
as many weeks, with Coles Myer given the green light yesterday for its purchase
of the Theo's liquor chain.
The Australian Competition and Consumer Commission had launched an
investigation into the liquor retail industry after small bottleshop owners said
the big supermarkets would drive them out of business. Winemaker Southcorp also
complained of the growing clout of Coles and Woolworths hitting margins.
The ACCC decision will give Coles, which also owns Liquorland and Vintage
Cellars, more than a quarter of the Sydney market in packaged liquor.
The head of the Independent Liquor Stores Association, Warren Bovis, said
Theo's which will retain its name had been the ``last remaining credible
opposition" to the chains, and small stores could not match their buying power.
``The failure of the ACCC to act results in a very significant step towards
complete market dominance by the chains," he said.
But the ACCC said the takeover ``was not likely to lead to a substantial
lessening of competition". The commission's chairman, Professor Allan Fels,
said no submissions were received from winemakers.
Professor Fels said in many instances Coles was buying Theo's to extend its
presence into areas where it did not have a store.
A proposal to force Coles to divest liquor licences in some towns was dropped
because ``the main buyer of the licences would have been Woolworths".
Lance Hogan, general manager of bottleshop Kemeny's, said the chains could
only expand in NSW because independent owners were selling their stores to them.
New liquor licences are only issued if the applicant can prove an area needs
another bottleshop, a rule under review by the State Government.
The decision follows the close of the controversial petrol price fixing
inquiry.
Professor Fels denied any conservatism on the part of the regulator as it
awaits the final report of the Dawson inquiry into the Trade Practices Act.
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