By Jessica Yun
Australia’s biggest drinks retailer Endeavour Group is investing $3 million into Sydney’s newest esports, gaming centre as the $12 billion giant covets Millennial and Gen Z customers who are socialising in venues outside traditional pubs and bistros.
The drinks and hospitality business that owns Dan Murphy’s, BWS and a range of pubs and hotels, purchased a minority stake of under 5 per cent in games company Fortress, which is set to unveil its new Chippendale venue to the public on Saturday. Its Melbourne venue opened in March 2020, six days before the pandemic shut its doors.
Gaming and entertainment company Fortress, backed by drinks giant Endeavour, is unveiling its new Sydney venue this Saturday.Credit: Kate Geraghty
Fortress Sydney is based inside Central Park Mall and spans nearly 3000 square metres with a state-of-the-art esports arena for gaming tournaments, video game booths, arcade games, VIP console suites, board game areas, and a Telstra lounge featuring top-range Alienware PC equipment. Like the Melbourne flagship, it is also a licensed venue and contains a fantasy-style medieval tavern.
Endeavour-owned Australian Leisure and Hospitality Group (ALH) interim managing director Paul Walton said the investment in Fortress fits with the company’s strategy to create “pub experiences locals love”.
“I think Fortress is about creating, for us, the hospitality venue of the future,” said Walton, who said many people in the 18-40 year old age bracket enjoyed social games to some capacity.
“They socialise digitally at home at the moment through gaming, but they also socialise in our hotels, and hospitality. This is really a chance for us to invest in a company that’s bringing those two experiences together.”
The arcade in Fortress Sydney.Credit: Kate Geraghty
More than 17 million Australians play video games, with the average age of a typical gamer being 34 years old. Revenue in the esports market is tipped to hit $26.5 million this year and is growing at nearly 8 per cent a year, making gaming one of the fastest-growing sectors of the entertainment industry.
Fortress Australia, which does not have any gambling component, is led by Melbourne tech entrepreneurs Jon Satterley, a former executive at theme park company Village Roadshow, and Adrian Giles, former chairman of ORDER Esports.
Giles said the drinks and hospitality giant was a “great strategic fit” for Fortress, with its fantasy-style taverns in both Melbourne and Sydney seating 240 diners.
“The tavern is as much about eating and drinking as well as board games ... A big part of Fortress is hospitality,” he said. “[Endeavour] also have a focus on social experiences, which is exactly what Fortress offer: a social experience around gaming and games culture.”
Fortress Australia CEO Jon Satterley, executive chairman Adrian Giles and COO Mads Brown during a press conference at Fortress Sydney in Central Park Mall on Tuesday.Credit: Kate Geraghty
The minority investment will give Endeavour some “skin in the game” and a seat at the table of Fortress, Giles added. The two companies are in talks to explore ways to introduce the Fortress experience to patrons at Endeavour-owned pubs, hotels and bistros.
“We can create smaller versions of Fortress that could be relevant inside hospitality venues, and that’s part of the strategic opportunity that’s in front of us with working with Endeavour.”
On top of financial backing, Endeavour will support the Fortress founders by sharing expertise about the hospitality industry, said ALH’s Walton.
The pandemic permanently shaped young adults’ socialising and drinking habits, the ALH managing director added, with young people either choosing to start the night at home or spend the entire night at home. COVID lockdowns also drove the popularity of homemade cocktails and the ready-to-drink market.
Millennials and Gen Z also enjoy having a wide range of options to choose from and are particularly conscious about health and sustainability, observed Walton.
”Another thing we’re aware of [Millennials and Gen Z] is the repertoire they have: experience really resonates strongly with them,” he said. “They tend to have a large repertoire in both venues they like to visit, occasions they like to participate in, and products they like to consume.”
Walton left the door open as to whether Endeavour’s digital and social arm, endeavourX, would make further investments in Fortress Australia or the esports industry more broadly.
“The priority for us is to support the launch, and if it continues to be successful, we’ll definitely be looking at how we continue to support and how we continue in this space.”
Fortress Sydney opens to the public at 12pm on Saturday and will close at 2am.
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