ACCC delays Endeavour Group’s Beachfront Hotel purchase

The proposed sale of an iconic Rapid Creek watering hole has hit a snag.

The Endeavour Group will proceed with plans to buy Darwin’s iconic Beachfront Hotel despite objections from the national competition regulator.

The Australian Competition and Consumer Commission has released a statement outlining “preliminary competition concerns” with the Endeavour Group’s proposed acquisition of the Rapid Creek establishment.

In addition to the Beachfront and the adjacent Cellarbrations bottleshop, the ACCC raised concerns Endeavour owns another four BWS bottleshops within 5km of the new purchase.

ACCC Commissioner Lizzy Carver said the regulator was concerned at the cluster of liquor outlets owned by the same company.

“We are concerned that this proposed acquisition is likely to substantially lessen competition in the supply of takeaway liquor in the local area,” Ms Carver said.

“It is important that local consumers in the Rapid Creek area benefit from competition between large liquor stores with different promotions, range and service offerings.”

The ACCC is also investigating the impact of the acquisition on the competitiveness of other independent liquor outlets in Darwin.

Happier times: Doug Sallis outside the Beachfront Hotel in 2002.

In particular, the ACCC is investigating whether removing the Beachfront Hotel liquor store from the Cellarbrations network and as a wholesale customer of Metcash-owned Australian Liquor Marketers will impact the efficiency and competitiveness of other stores that operate under the Cellarbrations banner, or receive wholesale supply from ALM.

Endeavour Group announced late last year it was buying the Beachfront from local businessman Doug Sallis.

It is built on a 7500sq m footprint and includes a bistro, public sports bar with TAB, 20 gaming machines and a drive-through liquor store.

In a written statement, the Endeavour Group acknowledged the ACCC action and said it would continue to work constructively with the regulator in the review.

“The Beachfront Hotel is a well-established premium venue popular with families, locals and tourists,” the statement said.

“It is an iconic pub and an important part of the local community. If the ACCC were to approve the transaction, we would look forward to working with the existing team and community to build on the pub’s popularity while maintaining the qualities that make it so well-loved today.”

The ACCC has sought community comment until January 16, pending a final decision scheduled for March 9, 2023.

This is the second time Endeavour, a business that successfully runs bottle shops and venues across the nation, has faced a battle with red tape in the Territory.

In 2016, Endeavour attempted to open a Dan Murphy’s outlet in Darwin, prompting a senior Labor Government adviser to the Chief Minister to describe the chain as a “Bunnings for drunks”.

The company decided against continuing with the Dan Murphy’s proposal in 2020.