In 1975 there was "just an idea" with the Independent Liquor Group (Suppliers) Co-operative Ltd having, as its genesis, a small contingent of liquor retailers buying as a group.

From what the industry would term modest beginnings, ILG has become a significant player in the business of wholesaling and distribution of wine and spirits, and other merchandise, to members across New South Wales.

When this buying group became a co-operative in 1977, it had 30 members who owned 50 retail outlets consisting of liquor stores, hotels and a small number of restaurants. It began operations with four staff.

In its first year of trading, ILG realised $1 million in sales, with assets of around $300,000 and a market share of one per cent.

Today, 25 years on, the co-operative has 600 members who own 650 outlets. The business is operated by 75 staff. In its most recent financial year, ILG's assets totalled $37.6 million with an annual turnover of $134 million and a market share of 12 per cent.

Helping themselves

In the 1970's, small liquor retailers and hoteliers faced a number of obstacles created by a market that was dominated by a small number of very large wholesalers. The obstacles included restricted marketing opportunities that did not always promote the interests of the smaller retailer and hotelier.

ILG formed a co-operative to provide a vehicle by which small retailers and hoteliers were able to secure a level of protection against the massive buying power of the larger corporations. The co-operative model was chosen because of the benefits derived by the individual retailers and hoteliers. Each member has an equal say in the activities of the co-operative - that is, one member one vote.

The co-operative attributes its success to its members and the realisation that people respond to the idea of helping themselves and other smaller independent operators who have similar experiences. The primary focus of the co-operative model is to respond to members' needs (as distinct from other business models where maximising profits is the goal).

Benefits to members and others

The ILG Co-operative gives its members significant buying power with enhanced marketing opportunities through specific advertising under banner names. They can take advantage of competitive pricing and credit card arrangements, generous trading terms and financial support.

ILG offers educational seminars and conferences to support members and provides up-to-date trading information about the business via the "web".

One unexpected way in which local communities benefited from ILG was through the creation of many distribution opportunities for local carriers.

Where to from here?

ILG's vision for the future is positive. Since incorporation, five separate premises have been used by the co-operative, with the most recent being purpose-built to cater for future expansion. The co-operative has developed a unique computer system that tracks wholesaling activities to greatly improve forecasting and planning.

ILG has recently separated its purchasing and supplying activities to enable a clear focus to be given to each activity. In practical terms, the separation was effected by establishing a new co-operative, called the Independent Liquor Group Distribution Co-operative Ltd. This was registered in July 2000. The original co-operative changed its name to the Independent Liquor Group (Suppliers) Co-operative Ltd.

ILG 's priority continues to be the welfare of its members and managing the ever-increasing competitive pressures in the market place.

ILG's website is at http://www.ilg.com.au.