Endeavour Group makes 14-day payment terms permanent

Liquor retailing giant Endeavour Group has announced that it will make permanent the 14-day payment terms it originally instituted for small suppliers as a COVID measure in 2020.

The payment terms apply to suppliers who receive payments from Endeavour Group of less than $1 million and with less than $10 million in annual turnover.

Endeavour Group CEO and Managing Director Steve Donohue said recent years have presented a range of challenges for small suppliers across the industry.

“In March 2022 we announced that we would extend 14-day payment terms until June 2023, but in response to supplier feedback over the last year, we are pleased to have made the decision to keep them in place for good,” Donohue said.

“While lockdowns seem like a distant memory now, the flow-on effects for our small suppliers cannot be underestimated.

“In order to have a vibrant drinks industry, it is important these businesses are given every opportunity to succeed. And our ability to provide customers with the most extensive range of drinks – to suit all tastes and preferences – depends on them.”

The move comes as the Australian Small Business and Family Enterprise Ombudsman Bruce Billson has maintained the office’s advocacy about payment terms, penning an opinion column in February highlighting that retail was one of the worst performers in payments to small businesses.

The article called out “woeful” figures that revealed only three out of 10 big businesses pay their small business customers within 30 days, while almost a quarter take more than 120 days to pay up.

“Making small businesses wait four months or more to be paid is nothing more than a crude display of power imbalances,” Billson wrote.

“When big businesses take so long to pay it can cause needless harm and cashflow challenges for small and family businesses.”

Endeavour Group is Australia’s largest retail drinks and hospitality business, owning the Dan Murphy’s and BWS chains.  It operates more than 2,000 retail outlets and hotels across the country, operating more than 12,000 poker machines. It recently reported a first-half net profit after tax of $364 million, an increase of 17 per cent.

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