As Australian grocery distributor Metcash this week lost a second supply contract, speculation mounted that it could be a target for acquisition.

South African-owned Metcash lost a contract to supply liquor to Australian Leisure & Hospitality worth some A$140m (US$100.3m). The forfeited contracted was estimated by ABN Amro to represent some 1.9% of Metcash’s group sales of $7.2bn and about 6.4% of its liquor distribution business. Earlier this Metcash lost a supply contract with Franklins.

Perth-based Foodland Associated has been mentioned as a possible bidder as it is believed to have a significant war chest for acquisitions.