Food Lovers Market

Fruit and Veg buys stake in Diamonds Discount Liquors

Fruit and Veg City and RMB Corvest have announced a deal whereby Fruit and Veg City Holdings would acquire a 50% stake in Diamonds Discount Liquors – and a new brand, Market Liquors, will be sited at exits and entrances of the Food Lover’s Market stores.

With the acquisition was ratified by the Competition Commission at the end of July 2012, the development is reported to be in line with Diamonds Discount Liquors vision of becoming a national chain, and its desire to align itself with a national supermarket retailer – in this instance, Food Lover’s Market stores.

Diamonds Discount Liquors was purchased by RMB Corvest in 2007 and has grown from 20 to 40 stores in 2012, based largely in the Western Cape and Mpumalanga.

Says Paul O’Linn, CEO of Diamonds Discount Liquors: “The new brand, Market Liquors, will be suitably positioned at the entrances or exits of Food Lover’s Market stores to facilitate convenience for consumers.”

“Market Liquors will compliment the unique Food Lover’s Market design. Product innovation and value for money will underpin the offering to consumers.”

The alcoholic beverages industry in South Africa, which is one of the most competitive in the world, has been recently categorised by a period of change in which larger players became more powerful and smaller players battled – in part due to the national retail chains dominating the market and muscling out the smaller retailers.

In addition to this, stand-alone bottle stores have traditionally not been female-friendly and supermarket retail stores offer a safe environment, positioned in key locations with convenient parking.

“It made sense for us to partner with Food Lover’s Market as it will offer more convenience for consumers, affording them the opportunity of shopping for liquor when they purchase their groceries,” concludes O’Linn.

The first Market Liquors will open in Bloemfontein in October.