Woolworths Group has announced plans to merge its hospitality and drinks units and then market it as a separate entity in the upcoming financial year. The company has been under immense pressure regarding its gambling operations and believes that this move will help ease that pressure, but also allow it to focus on its food chain. Woolworths Group is New Zealand’s second largest retail company by revenue.
The merger includes Endeavour Drinks, as well as hotel and gaming unit ALH Group, which will be one unit by the end of the current calendar year. This new partnership will be called Endeavour Group. The financial return of this new partnership, based on estimated annual sales, is expected to be about AU$10 billion (NZ$10,5 billion), while its gross earnings before interest, amortization, depreciation and tax will amount to AU$1 billion (NZ$1,05 billion).
Endeavour Group Makeup
The merger between the two units is expected to form one of the largest integrated drinks and hospitality businesses in the country. Together they will offer 1,500 retail outlets for their drinks division, and 327 ALH Hotels. The merger will also see the inclusion of other beverage brands like Pinnacle Drinks, as well as fine wine businesses Cellarmaster and Langton.
Woolworths Group’s joint venture partner The Bruce Mathieson Group, otherwise known as “BMG” will swap its entitlements in ALH for a a 14,6% stake in the new business and will continue to serve on the Board. Bruce Mathieson of BMG said in a statement: “Woolworths Group and BMG have enjoyed a long and successful partnership in ALH since 2004 which has created significant value for both sets of shareholders. This transaction is the natural evolution of the partnership and will allow Endeavour Drinks and ALH to reach their full potential. We look forward to continuing the partnership for many years to come.”Woolworths Group will retain a minority shareholding in the new business.
The merger will also lead to a few management changes. David Marr, the groups current CFO will assume the new role of Chief Operating Officer and is responsible for overseeing the merger. The current Finance Director will take over from him.
Woolworths Group Gambling Division Under Criticism
The company has received mounting pressure and criticism from anti-gambling organisations in Australia, urging it to stop operating its poker machines in the region due to the rise of irresponsible gambling practices and addiction. The most recent backlash was in June this year when regulatory bodies of a state in Australia took disciplinary action against two pubs in the area, managed by the ALH Group. The action was based off suspicions of unethical and illegal behaviour by Woolworths Group. Nobody from the company has directly commented on these claims. Woolworths Group Chairman, Gordon Cairns was however quoted saying that the move is in “shareholders’ best interests and will benefit customers and team members of both groups”.
Taralynn Engels is a seasoned casino news writer with a passion for keeping her readers up-to-date with the latest happenings in the gambling industry. With over five years of professional writing experience, Taralynn has developed a deep understanding of the casino industry and a knack for delivering engaging and informative content. Aside from her in-depth knowledge of the casino industry, Taralynn possesses excellent writing skills that allow her to craft captivating narratives that keep readers hooked until the last word. Her ability to simplify complex concepts and present them in an accessible manner guarantees that her articles are enjoyed by both seasoned casino enthusiasts and newcomers alike.
Recently updated on March 31st, 2019The New Zealand Department of Internal Affairs (NZDIA) has taken action against a gambling venue manager. An NZDIA spokesperson has confirmed that the accused was employed at a gambling venue and not a casino. Under the 2003 Gambling Act, the manager is facing a fine of NZ$5000 and a criminal […]
Recently updated on October 23rd, 2020If you’re looking to get into the spooky spirit, then we’ve got some Halloween bonuses for you. These offers are exclusive to NZ players, so grab them while you can! All of the bonus money offers we’ve found are exclusively available for brand-new Halloween slots. With that said, let’s get […]
Recently updated on August 11th, 2019Recent inspections into Star Entertainment junket operators has prompted the CEO to speak out. According to recent reports, Star Entertainment’s junket operators have become the subject of public inquiry. Since Crown Resorts’ own troubles with authorities overseas, the sector has been extremely sensitive to legal backlash. In 2017, Star Entertainment’s […]
Recently updated on November 20th, 2020November tournaments are starting on the Playson and Wazdan networks, with $50 000 (each) in prizes waiting to be claimed. The Wazdan Cash Drops will start on 19 November, while the Playson Cashfalls start on 20 November. If you want to enter, you can sign up at King Jonnie Casino or […]
Recently updated on July 16th, 2019The World Poker Tour in partnership with the Star Gold Coast Casino in Queensland has announced the first WTP poker tournament in Australia. The festival is set to take place from 27 September to 7 October. There have been a total of 7 events scheduled for the day with buy-ins […]
