KEY POINTS:
Grocery giant Foodstuffs' presence in liquor retailing could get a shot in the arm as it looks to swallow Liquorland.
The co-op, which controls around 56 per cent of the grocery retailing sector, is understood to be one of several parties interested in purchasing the 72 stores of DB Breweries' franchise retail chain.
Besides supermarket wine and beer retailing, Foodstuffs also operates the large format liquor store Duffy & Finn's, and the smaller format Henry's.
Success in the Liquorland bid could add fuel to the already intense rivalry with Woolworths.
The Australian-owned supermarket firm is still pursuing Liquor Licensing Authority approval for store-within-store models selling spirits as well as beer and wine - despite being denied a bid to set up in a Christchurch Countdown in what was regarded as a test-case decision.
And success for Foodstuffs could spell trouble for independently owned stores, which cannot compete with the supermarkets' buying power.
Large liquor chains have a slight edge in market share, controlling around 53 per cent, to the independents' 47 per cent.
Foodstuffs was not commenting on speculation of the bid, as was DB, citing confidentiality agreements.
A DB spokeswoman said the company decided to review the option of selling the Liquorland franchise after several unsolicited expressions of interest.
"We're not committed to a sale - we're investigating the possibility.
"We just received a bit of interest and like any business, we evaluate opportunities as they arise.
"Liquorland is a successful asset for DB Breweries, so while we are looking at the option to sell, we will only consider this if a suitable buyer is identified."
Cranleigh Merchant Bankers was appointed last month to evaluate bids and manage the sale process. Evaluation of a possible sale will take place over the next few months.
The spokeswoman said any sale would ensure the future interests of franchisees and staff, and the continuation of the franchise as a whole.
A sale would also need to ensure that DB retained "an excellent relationship" with the franchise, retaining placements for DB products within Liquorland outlets, the spokeswoman said.
