👉 Background: Endeavour Group is the ASX-listed company that was spun out of Woolworths back in 2021. It not only owns Dan Murphy's and BWS, but it also owns 354 pubs and pokies facilities around Australia.

👉 What happened: Now, Endeavour Group has just released its quarterly sales, which saw a growth of just 2.1%. But more interestingly, they have seen a major switch to frugal shopping habits, like VB and Tooheys over craft beers. Also, we're talking cheaper rosé rather than champagne.

👉 What else: But Endeavour faces other challenges too - its largest shareholder Bruce Mathieson, who owns 15% of the company, has been pushing hard for leadership change because of the company's (under)performance.

What's the key learning?

💡A company's success is often closely tied to the happiness of its most influential shareholders.

💡With a 15% stake in Endeavour, its biggest shareholder has significant voting rights. And when key investor aren't happy, their influence has the potential to destabilise a company:

• They can convince shareholders to change their votes on board remuneration
• They can demand new board members and undermine leadership
• They can even significantly hurt the share price

💡Right now, Endeavour is walking a tightrope between satisfying its biggest shareholder and doing what it thinks is best for the company's future.

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