Kemenys' thumbs up for online offer

Kemenys, run by Emma Kemeny and her two sons, Andrew and Gabor, celebrates 50 years this year and unlike other smaller retailers, has escaped being swallowed by bigger players.

The business has survived with only one store, in Bondi, a warehouse in Waterloo and its mail-order catalogue that is finally joining the digital age.

In figures lodged with the Australian Securities and Investments Commission for June 2009, Kemenys showed sales of $46 million and an after-tax profit of almost $1 million. In comparison, the Woolworths group - including Dan Murphy's and BWS - reported liquor sales last year of $5.6 billion.

Kemenys' chief financial officer, David Reberger, said there are more than 100,000 customers on the Kemenys database, many drawn through newspaper advertisements, and the bulk of sales come from catalogue phone orders. Kemenys expects to see about 10 per cent of its trade go online initially.

While Woolworths and Coles push more of their own wine brands, Kemenys pitches itself as going the other way: maintaining a strong offering of genuine labels. Its "cleanskins" also reflects this. Kemenys' Hidden Label is designed to move good-quality wine at excellent value, like a chardonnay for $35 that might usually sell for more than $100.

Its website will list all 2000 lines that it carries in store and an in-house panel that rates wines by quality and value will later be extended to include ratings by shoppers.

The chief executive of the Australian Liquor Stores Association, Terry Mott, said an increasing number of liquor licences have been given to online merchants - but many of them sell only online and compete solely through price. About 80 per cent of the market is still at a convenience store level - though some are now part of bigger chains, Mr Mott said.

Andrew Kemeny said the business was founded on competitive prices, good relationships and high-quality product. The catalogue includes a thumbs-up rating system many customers rely on. On the rare occasion a wine is awarded three Kemenys thumbs, it sells in a flash, he said.