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Coles looks to drown its liquor woes

Days before Woolworths is due to announce its profit results, with its liquor business expected to produce another solid performance, Wesfarmers is restructuring its liquor business to stop the drag on its revenue.

It could be the start of a bloody war as both supermarket giants slug it out for the billions of dollars in revenue that is spent each year in liquor stores. But unlike most wars, the ones in the crossfire will be the suppliers of liquor, rather than the supermarket giants.

Coles heard the wake-up call when its latest results showed liquor slicing at least 0.5 percent off its supermarket revenue. In sharp contrast, Woolworths is getting a lift of at least 0.5 percent from its liquor business.