Alcohol vending machines put to test

By Karyn Scherer

The much-hyped possibilities of smartcards are about to get one of their toughest tests yet, with the official launch in Auckland yesterday of vending machines for alcohol.

As Australia considers scrapping cigarette vending machines because it is concerned they are being used by teenagers, former All Black Joe Karam believes he has come up with a neat solution for beer and other alcoholic drinks.

For the past two-and-half years, Mr Karam has been working on a machine that uses smartcards to control access. Five prototypoes down the track, he believes he has finally hit on a workable model.

The Liquor Licensing Authority appears to be relaxed about the machines.

Investigating officer Wayne Newall said the authority had met Mr Karam in February to discuss his plans.

"On the surface of it, the explanation he has given seems reasonable, but the proof of the pudding will be in the drinking, I guess."

Mr Karam has worked closely with New Zealand company Cash Handling Systems on his idea. The machines are made in Melbourne and use European smartcard technology.

The cards contain a chip which can be used to set spending limits, and if required, restrict access to non-alcoholic products only.

To get around the Sale of Liquor Act, the machines will be able to be used only in licensed premises. It will be up to the owners of the premises to stock the machines, set prices, and control access.

Mr Karam is no stranger to the vending business. In the early 90s, he founded Vendit Marketing, which became the second-biggest distributor of non-alcoholic drinks in New Zealand. The business, which he sold in 1995, has since gone into receivership.

His new company, which trades under the name Liquorvend, claims to have 60 outlets already signed up for the machines - a third of them in Auckland. Another 60 machines are due to arrive later this year.

He expects demand will be strongest from motels and motor inns, and sports and social clubs.

Beer-vending machines are common in Japan, where liquor laws are extremely liberal, but are not believed to be in use anywhere else in the world.

Lion Nathan last year tested them at a selected number of outlets in Australia, but was disappointed with the results.

Spokesman Graham Seatter said the company had abandoned the idea, and had no plans to introduce them here.

Mr Seatter said the company found people needed additional incentives such as loyalty schemes to persuade them to use the machines.

"In terms of the costs and benefits we just decided it wasn't something we saw value in."