The business began when the young, ambitious Dan Murphy leased a licensed grocery store at 290 Chapel Street, Prahran, Melbourne, in 1952. It was less than a kilometre from, and deliberately in competition with, the business run by Dan’s father, Timothy, known as T.J. or Ted Murphy, on Commercial Road.

Dan Murphy claimed the Murphy name has been synonymous with liquor retailing since his grandfather, Daniel Murphy, established a business in 1878 and, using that date in the marketing of his new venture, he began trading his life’s passion—fine wine.

Dan immediately began doing things differently. He bought in bulk and sourced many of his wines directly from overseas. He wrote stories and reviews about his wines, he held social functions and started a wine club.