Woolworths tops up Endeavour liquor, hotels arm with Shorty’s stake

Endeavour Drinks takes controlling stake in corporate supplier Shorty’s ahead of a spin-off from Woolworths.

Endeavour Drinks managing director Steve Donohue. Picture: David Geraghty

Woolworths has topped up its drinks and hotels arm Endeavour Drinks in the lead up to a potential demerger or sale later this year, buying a controlling stake in business-to-business liquor and hospitality group Shorty’s Liquor.

Woolworths said Endeavour had entered into a strategic partnership with the Sydney-based drinks specialist to help take the business to more customers across Australia.

Established in 2001, Shorty’s Liquor is a leading drinks retailer servicing corporate customers and on-premise venues in Sydney. It helps to cater for events at corporate locations and other venues.

Shorty’s Liquor also offers online ordering and delivery to corporate offices in Sydney, and its client list includes a number of prominent financial services, legal, and advertising businesses.

Endeavour Drinks has acquired a majority interest in Shorty’s Liquor alongside its founder David Short and will support its growth plans in Melbourne, Brisbane and other capital cities over the coming years. The price Woolworths paid for the majority stake has not been disclosed.

Mr Short will continue to lead the business within the broader Endeavour Group.

Endeavour Drinks managing director Steve Donohue said developing new growth avenues is a key priority for Endeavour Drinks.

“We have a proud track record partnering with innovative players in drinks having successfully integrated the likes of Dan Murphy’s, Cellarmasters and Jimmy Brings into our portfolio.

“Shorty’s has developed an exciting proposition over the years and we’re pleased to be partnering with them to build a bigger presence in the business to business segment.

“We look forward to partnering with David and his team to offer even better value and more convenience to more corporate customers across Australia,’’ he said.

Mr Short added: “We’re thrilled to be partnering with Endeavour Drinks to help fuel our next wave of growth.

“We’ll benefit greatly from tapping into Endeavour’s national supply chain, while also retaining our agility as a distinct business within the group.”

Woolworths in July unveiled its plan to merge its drinks and hospitality businesses - Endeavour Drinks and ALH Group - into a single entity. Last month Woolworths shareholders approved a restructure scheme to combine Woolworths drinks and hospitality businesses to create Endeavour Group. The supermarket giant intends to implement the ALH merger, combining Endeavour Group with the Bruce Mathieson family’s interests in ALH in February.

Woolworths intends later this year to pursue a separation of Endeavour Group from Woolworths by way of demerger or other value accretive alternative, such as a sale or sharemarket float, which will require shareholder approval.