A Glass Act Retires

Sydney Morning Herald

Tuesday May 13, 2008

Jeni Port

Tony Leon, the man who helped make discount wine retailer Dan Murphy's into a national empire, is moving on.

With Dan Murphy - his mentor, boss, business partner and ultimately bitter foe - Leon gave life to Murphy's philosophy of never being beaten on price but after 23 years with the company, many as general manger, he has announced he is finishing on June 30.

Wine drinkers will mourn, as Leon is the natural-born, fast-talking deal maker who made the company billions simply by being cheap.

And not only cheap but the cheapest in town - a one-dimensional business strategy devoid of any great romance, to be sure, but one that Leon has practised with the precision of a surgeon.

For independent wine retailers, particularly in the company's home base of Melbourne, there won't be a dry eye in the house; their long-time nemesis is finally leaving the building. Tears and champagne will no doubt follow. In a wine deal, Leon was merciless (he considers "shrewd" a better word), frequently sending retail rivals to the cleaners in the process.

It's clear there was always money to be made, even if Dan Murphy's was undercutting everyone else in price. When Murphy and Leon sold their five stores to Woolworths 10 years ago the company's annual turnover was $100 million; Leon continued to work for the company. In 2009, with more than 80 stores nationwide - 27 in NSW and the ACT - turnover will be close to $2 billion. Leon knows his numbers.

"A lot of people thought in Dan Murphy's I didn't make a profit," he says. "I gave liquor away. We made more profit in Dan's than any other retailer in liquor by far.

"If we keep doing what we are doing we will have very strong business in five years' time - untouchable almost. We have 86 stores today and we have a five-year plan that will give us close to 200."

However, in just over a month the "we" will no longer include Leon. After a holiday the 50-year-old will be pursuing other business interests while Dan Murphy's former business development manager, Martin Smith, takes Leon's hot seat. Smith has worked with Leon for six years and, according to Leon, knows "the culture".

"The most important thing in Dan's is the culture," he says.

© 2008 Sydney Morning Herald

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