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Home / Business / Companies / Retail

Supermarket companies lose legal battle over late night alcohol sales

John Weekes
By John Weekes
Senior Business Reporter·NZ Herald·
5 May, 2023 05:35 AM4 mins to read

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The beer aisles at Auckland supermarkets could be off-limits after 9pm, but don't expect changes immediately. Photo / Natalie Slade

The beer aisles at Auckland supermarkets could be off-limits after 9pm, but don't expect changes immediately. Photo / Natalie Slade

Campaigners against alcohol abuse say a new Supreme Court ruling on booze sales is a relief but eight years have been wasted on arduous court battles.

After today’s legal setback, one of the supermarket giants said it simply appealed previous court decisions for the sake of its customers.

Foodstuffs and Woolworths New Zealand have lost the legal fight to stop Auckland Council from imposing stricter sale times for alcohol.

“For us it’s a ‘phew’ rather than a ‘woohoo’,” Alcohol Healthwatch acting executive director Rebecca Williams said.

And Friday’s court decision would probably embolden other councils previously too scared of legal risks and costs to enact reforms, Williams added.

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“It’s been a tiresome, frustrating process, undermining local democracy as far as we can see.”

Williams said ratepayers had clearly indicated a desire to cut back liquor sales hours.

The Supreme Court said elements under challenge in the case included 9am to 9pm maximum trading hours for all Auckland off-licences instead of the default hours of 7am to 11pm.

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In 2015, Auckland Council introduced a policy to limit alcohol sales but legal challenges followed, going all the way to the country’s highest court.

Williams said the community had missed out on eight years of benefits from reduced alcohol harm, and ratepayers and taxpayers had to pick up legal costs too.

“Reducing trading hours is shown to be effective at reducing alcohol-related harm,” she told the Herald.

She said corporate interests and lobbyists fought back against attempts to cut trading hours.

But today people will still be able to buy booze at supermarkets up to 11pm - and they will tomorrow as well.

“There’s still a journey to go through,” Williams added. “It will come back to the Alcohol Regulatory & Licensing Authority.”

Foodstuffs, whose brands include New World, Pak’nSave and Liquorland, said it appealed because customers wanted freedom to buy alcohol at the same time groceries were bought.

“We’re naturally disappointed by the result, but respectful of the decision made by the Supreme Court and pleased with the clarity provided on the legal principles,” Foodstuffs spokeswoman Emma Wooster said.

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She said the motivation behind appealing was to serve Auckland customers, who wanted to buy beer and wine, and wanted certainty around these products being available at the same time they did their supermarket shop.

“We acknowledge the clarity provided by the Supreme Court and we’ll continue to focus on serving our local communities responsibly,” Wooster said.

Auckland Council chief of strategy Megan Tyler said the proposed local alcohol policy (PLAP) had faced legal challenges since 2015.

“While these appeals before the Supreme Court are now exhausted, this decision does not mean that the PLAP can immediately come into force.”

The council said the supermarket company arguments focused on maximum trading hours for the sale of alcohol, decision-making on where new off-licences might go and discretionary decisions on alcohol licences.

The council’s regulatory and safety committee chairwoman Josephine Bartley welcomed the decision.

”At the heart of the council’s policy approach has been the reduction of alcohol harm in our communities.”

She added: “While the changes won’t happen overnight, we look forward to seeing alcohol suppliers reflect on the ways the policy will allow them to supply alcohol responsibly and where they can do their bit to mitigate the worst impacts of alcohol on their communities.”

Green MP Chlöe Swarbrick of Auckland Central says retail intransigence has cost ratepayers more than $1 million. Photo / Alex Burton
Green MP Chlöe Swarbrick of Auckland Central says retail intransigence has cost ratepayers more than $1 million. Photo / Alex Burton

Auckland Central MP Chlöe Swarbrick said special appeal rights meant a thoroughly consulted community process to develop a local alcohol policy was stymied for years and cost more than a million dollars in ratepayer money to implement.

“It’s precisely why I drafted the first half of my Alcohol Harm Minimisation Bill to remove these special, unique rights corporations have to hold up implementation of community willpower,” Swarbrick added.

“These special appeals don’t exist in vaping, tobacco, pokie or any other form of social harm regulation.”

She said the Government “effectively nicked” that part of her bill but it was encouraging to see the proposed reforms progressing now through a select committee.

“In future we won’t see more of these farcical, expensive and outrageously time-consuming court processes drag the chain on basic policy settings built on thorough community consultation.”

The supermarket companies did have some previous court successes.

The High Court found the local licensing authority made an error of law by failing to provide appropriate reasons regarding the 9pm closing time and the new off-licence restrictions.

Then the Court of Appeal reinstated the licensing authority decision in relation to the 9pm closing time and new off-licence restrictions.

The Supreme Court allowed Woolworths and Foodstuffs to appeal but reached a unanimous decision today dismissing the appeals.

Some campaigners against alcohol abuse have broadly argued later trading hours enable problem drinkers and exacerbated alcohol-related harm.

- Additional reporting by Amy Williams of RNZ

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