Coles axes Vintage Cellars, First Choice stores in liquor overhaul

Coles will axe its Vintage Cellars and First Choice Liquor Market chains and fold it into the better-known Liquorland brand as it fights to close the gap between bigger rivals Dan Murphy’s and BWS.

From next month, Coles will begin unifying its 984 stores nationwide under one brand, renaming Vintage Cellars and First Choice stores as Liquorland Cellars and Liquorland Warehouse, respectively.

The move marks Coles’ latest attempt to reinvigorate its long-struggling liquor arm and follows a 16-week pilot program trialled at selected stores in South Australia, Victoria and Queensland last year.

Coles expects the rebrand will simplify the customer offer by “aligning product range, promotions, Flybuys loyalty program and omnichannel service”.

For the first time, Liquorland customers will also be able to price match in-store, an offer Endeavour-owned Dan Murphy’s has become known for.

Coles liquor chief executive Michael Courtney said it represented a significant milestone for the business by bringing together the best elements of all three brands across value, range and convenience.

Under the changes, Mr Courtney said pricing, ranges and loyalty programs would be consolidated into one.

“This is the biggest transformation in the history of Coles liquor group, and we believe it will have a meaningful impact on how we serve customers the drinks they want, when they want them, and how we partner with suppliers to deliver value,” he said.

“In terms of range, we are bringing a more tailored and relevant drink selection from the three banners under one roof.

“This means we will be unlocking the best-selling premium drops from Vintage Cellars and great value drinks from First Choice Liquor Market, and making them more accessible to customers through Liquorland across the country.”

Mr Courtney said the pilot delivered a 16 per cent improvement in brand awareness and a 30 per cent lift in customers likely to shop with the brand again.

Coles’ liquor arm posted a 20.2 per cent slump in half-year earnings to $67 million, which group chief executive Leah Weckert blamed on the overall decline in the industry.

“We absolutely are seeing a shift towards cheaper drinks. Think prosecco is all the rage versus champagne,” she told The Nightly last month.

“What we’re finding is that customers have a certain amount to spend each week and what they want to do is be able to buy the same number of drinks . . . and so trading down into cheaper options enable them to do that.”

Around 160 Vintage Cellars and First Choice stores will be transformed, which is expected to be completed by the end of the year. This is set to grow Liquorland’s footprint by 25 per cent.

Since November 2024, Coles Liquor has converted 14 stores to Liquorland Cellars and Liquorland Warehouse, including nine stores in South Australia, three Vintage Cellars stores in Victoria and two First Choice Liquor Market stores in Queensland.

Liquorland first launched in Australia in 1971 and currently has 818 stores across the country.