Grant of Liquor Store Licence Public Interest Assessment BWS Midvale
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Grant of Liquor Store Licence Public Interest Assessment BWS Midvale 27 October 2020 47695454_7 Contents ABOUT THIS APPLICATION 1 Part 1 - Background Information 2 A. Premises 2 1 The Midvale Shopping Centre 2 2 The Proposed Store 2 3 Development Approval 2 B. The Business to be operated at the Proposed Store 3 1 Background of Endeavour Group Limited 3 2 Overview of BWS 3 2.1 BWS Products 5 2.2 Success of the BWS brand 5 2.3 Responsible management 6 Part 2 – Tests to be satisfied 7 A The Public Interest Test and Packaged Liquor Requirements 7 1 What is the 'Public Interest Test'? 7 2 What needs to be satisfied to meet the Public Interest Test? 7 2.1 Primary and secondary objects 7 2.2 Additional factors 8 3 Packaged liquor requirements 8 4 About this PIA 9 B. Locality 11 1 Defining the Locality 11 2 Location of Proposed Store 11 3 Farrall Road Structure Plan – Movida Estate 12 4 Strategic Planning Framework 13 5 Demographics 13 5.1 Current Population and Forecasts 13 5.2 Age Profile 14 5.3 Migrants 15 King & Wood Mallesons PIA – BWS Midvale i 47695454_7 27 October 2020 5.4 Household Composition 15 5.5 Employment 15 5.6 Socio-economic status 15 5.7 Summary 16 6 Sensitive Premises 17 C. Other Licensed Premises in the Locality 18 1 Licensed Premises 18 1.1 Existing Packaged Liquor Services 18 1.2 Distribution of Existing Premises 25 1.3 Ease of Access to the Existing Premises 26 1.4 Summary 28 D. Consumer Requirement and the Proper Development of the Industry 29 1 Australian Liquor Market 29 1.1 Changes in the way that we shop 29 1.2 BWS Customers 30 2 Community Survey 30 2.1 The Results 31 E. How does the proposal address the minimisation of harm and ill health? 35 1 Current Alcohol Consumption Trends in Australia and Western Australia 35 1.1 Australia 36 1.2 Western Australia 37 2 Alcohol Related Harm 38 2.1 Hospitalisation, Mortality and Alcohol Consumption rates 38 2.2 VicHealth Study 39 2.3 Crime Rates 40 2.4 Community Safety 41 3 Harm Minimisation Management 41 3.1 Effective management 41 3.2 Management practices, staff training and RSA 42 3.3 Environmental factors: Crime prevention through environmental design 43 3.4 Responsible buying 43 3.5 Community education 44 3.6 Community involvement 44 4 Impact on Specific at Risk Groups 45 4.1 At risk groups 45 F. Other Factors 47 1 The amenity, quiet or good order of the Locality – Section 38(4)(b) 47 1.1 Retail Amenity 47 1.2 Quiet and good order 47 1.3 One-stop shopping 47 King & Wood Mallesons PIA – BWS Midvale ii 47695454_7 27 October 2020 1.4 Physical amenity 48 2 Offence, annoyance, disturbance or inconvenience 49 2.1 Trading hours 49 2.2 Traffic 49 2.3 Noise 49 2.4 Security and management 49 3 Tourism, or Community or cultural matters 49 H. CONCLUSION 51 I. FURTHER INFORMATION 53 King & Wood Mallesons PIA – BWS Midvale iii 47695454_7 27 October 2020 ABOUT THIS APPLICATION Endeavour Group Limited ( Endeavour or the Applicant ) is applying for the grant of a liquor store licence for a new BWS liquor store ( Proposed Store ) to be located within the new Midvale Shopping Centre ( Shopping Centre ), which is to be constructed at 227 Morrison Road, Midvale, Western Australia. This Public Interest Assessment ( PIA ) is presented in support of an application to the Director of Liquor Licensing for the grant of a liquor store licence in respect of the Proposed Store. Under section 38(2) of the Liquor Control Act 1988 (WA) (Act), the Applicant must satisfy the Licensing Authority that, on the merits of the application, it is in the public interest to grant the licence (the 'public interest test'). As stated in McKinnon v Secretary Department of Treasury : “The expression ‘in the public interest’ directs attention to that conclusion or determination which best serves the advancement of the interest or welfare of the public, society or the nation and its content will depend on each particular set of circumstances. ” 1 The Applicant submits that the granting of the liquor licence for the Proposed Store will be in the public interest and will contribute to the responsible development of the liquor industry in the locality where the Proposed Store will be located. The Applicant must also satisfy the licensing authority that local packaged liquor requirements cannot reasonably be met by the existing packaged liquor outlets in the locality pursuant to s36B(4) of the Act. The Applicant submits that it has provided sufficient evidence in this PIA to satisfy the packaged liquor requirement threshold test. This PIA is divided into 2 parts: (a) Part 1 outlines the background of the application and the development of the Proposed Store; and (b) Part 2 addresses the elements of the public interest test and demonstrates that the test is satisfied in respect of the Proposed Store. It also demonstrates that the local packaged liquor requirements cannot reasonably be met by existing packaged liquor premises in the locality. 1 (2005) 220 ALR 587, 590 King & Wood Mallesons PIA – BWS Midvale 1 47695454_7 27 October 2020 Part 1 - Background Information A. Premises This section of the PIA summarises the plans for the Proposed Store. 1 The Midvale Shopping Centre The Midvale Shopping Centre will consist of a full-scale Woolworths supermarket (4,000 sqm) ( Supermarket ), the Proposed Store (170 sqm) and approximately 15 specialty/commercial tenancies. The Shopping Centre, including the Supermarket, is expected to open in November 2021. There will be 316 on-grade car parking spaces available at the Shopping Centre. A site plan of the Shopping Centre can be found at Annexure A. The Proposed Store will primarily service residents within the suburb of Midvale. 2 The Proposed Store The Proposed Store will be approximately 170 sqm in size and hold stock worth approximately $240,000. The Proposed Store will be in the typical BWS format and will employ 3 full time staff and 5 permanent part-time/casual staff. A plan of the Proposed Store is attached at Annexure B. The Proposed Store will open at the following times: Monday to Friday 8am – 9pm Saturday 8am – 5pm Sunday 11am – 5pm The Proposed Store will be located adjacent to the Woolworths supermarket to provide the opportunity for single-trolley grocery and liquor purchases. 3 Development Approval Development Approval was granted by the City of Swan on 3 August 2020. The Proposed Store will form part of a new neighbourhood shopping centre that will include a full-scale Woolworths supermarket. The Proposed Store will be adjacent to the Woolworths supermarket. Development Approval has been granted. King & Wood Mallesons PIA – BWS Midvale 2 47695454_7 27 October 2020 B. The Business to be operated at the Proposed Store 1 Background of Endeavour Group Limited On 3 & 4 February 2020, Woolworths Group Limited ( Woolworths ) merged its drinks and hospitality businesses, Endeavour Drinks and ALH Group Pty Ltd (ALH), into a single entity within Woolworths known as Endeavour Group Limited. The merger of Endeavour Drinks and ALH has created Australia’s largest integrated drinks and hospitality business with sales of approximately $10 billion and EBITDA1 2 of $1 billion. Endeavour will have leading market positions, strong cash flow to fund investments in growth and an attractive and resilient revenue and earnings profile. It will comprise highly integrated store-based and online offerings, with over 1,500 BWS and Dan Murphy's retail drinks outlets and 327 ALH hotels. ALH retail drinks outlets currently comprise approximately 35% of Woolworths Group retail drinks sales with 86 Dan Murphy’s and 512 BWS stores owned by ALH at the end of March 2019. Endeavour continues to uphold the strict policies and practices for licensed premises implemented by Woolworths. 2 Overview of BWS BWS stores are liquor stores which provide convenience to customers. Part of the popularity of BWS is the locations of the stores in neighbourhood shopping centres either as stand-alone stores or adjacent to Woolworths supermarkets. After Dan Murphy's, BWS is the second most popular store for purchasers of packaged liquor. 3 Figure 1: Market share over time: supermarket liquor stores’ total alcohol retail share of dollars 2 EBITA – Earnings before interest, taxes, and amortization 3 Roy Morgan (20/03/2017) 'The Australian alcohol retail market in review' - accessed at http://www.rovmorgan.com/findings/7181-liquor-retail-australia-201703201051 King & Wood Mallesons PIA – BWS Midvale 3 47695454_7 27 October 2020 As a dominant player in the alcohol retail industry, Endeavour (formerly Woolworths) has maintained the highest market penetration among alcohol retailers in Australia. Data released by Roy Morgan in September 2019, revealed that 60.7% of Australian alcohol buyers purchased from a Woolworths-owned store in an average four-week period. 4 37% of these consumers purchase exclusively from Woolworths stores (now owned by Endeavour). 5 Figure 2: Cross visitation of alcohol retail consumers Morgan Single Source Australia, July 2018 – June 2019, n=6,829. Base: Australians aged 18+ who had purchased packaged alcohol in the past four weeks. The BWS customer base appears to be increasing at impressive levels. Over a period of 12 months leading to September 2018 BWS increased its customer base by 9.3%. 6 Figure 3: 4 Roy Morgan (02/09/2019) ‘Woolworths bottle shops prove must popular’ – accessed at http://www.roymorgan.com/findings/8114-alcohol-retail-cross-visitation-june-2019- 201908300757 5 Ibid. 6 Roy Morgan (8/11/2018) ‘Supermarkets continue to take alcohol market share from hotel bottle- shops’ – accessed at http://www.roymorgan.com/findings/7753-supermarkets-continue-to-take- alcohol-market-share-from-bottle-shops-201811080408 King & Wood Mallesons PIA – BWS Midvale 4 47695454_7 27 October 2020 Recent Roy Morgan research has found that ‘[for] BWS it is the 845,000 Australians aged 35-49 years of age who comprise the largest share of their customers’ 7 2.1 BWS Products BWS offers a comprehensive range of liquor products, including local and international beer, wine and spirits.