The Mill gulps down liquor rival

Independent liquor retailer The Mill Liquorsave has swallowed fellow liquor chain Birds Liquorsave as it seeks critical mass amid reports that new players are eyeing the market.

The Mill's general manager, Stephen Fromont, said the acquisition, for an undisclosed sum, would give the company the scale it needed to defend and grow its market share if it faced fresh competition.

He said news that The Warehouse had registered "The Warehouse Cellars" as a name for liquor sales, as well as changes in the Australian retail market, had increased speculation that new players would target liquor retail.

"With this purchase, and with us getting our supply lines right, we are ready and willing to stand up for ourselves and box above our weight."

The Birds buy adds seven stores in the Waikato and Bay of Plenty to The Mill, plus a Hamilton distribution centre.

The Mill now has 41 stores from Dunedin to Whangarei and estimates it has 18 per cent of the take-home liquor market.

"This adds about 25 per cent to the size of our business, which means we'll be able to get better value and efficiencies across all our stores," said Fromont.

All Birds stores and staff will be retained, with the outlets to be re-named Mill Birds Liquorsave.

Birds was named for the Hamilton family that owned and managed the business, while The Mill is privately owned by Nyall and Chris Simkin, and Fromont.

The Mill plans to remain privately owned and independent, and continue growing through new stores and acquisitions.