Woolworths is planning for a huge shake-up after revealing plans to merge its alcohol and hospitality businesses.

The demerger would see the creation of Endeavour Drinks, which is expected to produce $10 billion in annual sales.

Endeavour Drinks would include Dan Murphy’s, BWS and pubs and pokies company ALH Group.

Woolworths Food Group Managing Director Brad Banducci tells Ross Greenwood it will allow for more growth.

“Splitting Woolworths Group into a food and everyday needs and into a drink and hospitality business, with a strong partnership on a range of shared platforms, made a lot of sense to us.”

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