Independent Liquor Group

Providing choice and flexibility.

The extended version of this case study is presented in T Mazzarol, Australia’s Leading Co-operative and Mutual Enterprises in 2018, which is part of the CEMI Discussion Paper series.

Established in 1975 by a group of independent hotel and bottle shop owners, Independent Liquor Group is now a major business comprising two separate but related co-operatives with a combined annual turnover of just over $773.5 million.

The overarching member value proposition (MVP) for the ILG Group is the ability to work collectively to secure and maintain a competitive position in a marketplace dominated by a few very large investor-owned firms.

The management of two separate but interrelated co-operatives with suppliers and distributors in membership may appear to pose potential managerial challenges, this is not the experience of the ILG Group.

The ILG Group focuses on ensuring that the margins made by all members are su cient for them to stay nancially viable in a highly competitive, oligopolistic market.

As they operate in a highly competitive market environment, the members of ILG Group understand that they are better o working within the co-operative than they might be trying to go it alone.

Despite its success, the ILG Group is not complacent and recognises the need to adapt to changes in the market.