Auckland Council will investigate whether a duty-free retailer breached alcohol legislation during its closing sale. Photo / Annaleise Shortland
Auckland Council will investigate whether a duty-free retailer breached alcohol legislation during its closing sale. Photo / Annaleise Shortland
Auckland Council will investigate whether a shuttered duty-free retailer breached alcohol legislation during its closing-down sale.
Last week, T Galleria by DFS, a luxury duty-free retail store in downtown Auckland, closed its doors, with shelves left bare by shoppers who had earlier snatched up heavily discounted items.
Promoting their “appreciationsale” on Instagram, the business posted photos that showed displays of 750ml bottles of Villa Maria, Pyramid Valley and Esk Valley wines priced between $4.40 and $7.80 each. A sign displayed amongst the bottles advertised discounts being “up to 90% off”.
The post has since been removed.
DFS Galleria promoted duty free wine for as little as $4.40 a bottle. Photo / DFS New Zealand Instagram
The caption of a separate Instagram post, published on August 22, listed amongst other “exclusive offers” that the retailer had “Spirits & Wine (duty free only): 60% - 80% off”.
Veronica Lee-Thompson, Auckland Council’s acting manager of licensing and environmental health, told the Herald that promotion of an alcohol discount exceeding 25% outside the licensed premises is a breach of the Sale and Supply of Alcohol Act 2012.
“We will be investigating this alleged breach and will decide on appropriate action once the investigation is complete.”
Pyramid Valley managing director Steve Smith said the brand was “incredibly disappointed” to discover its wine was discounted to such a degree by the retailer.
“This is a small production wine that has been tightly allocated to a select number of fine wine merchants and restaurants in New Zealand and Australia.”
A screenshot of DFS Galleria's Instagram post from August 22. Photo / Instagram
The North Canterbury winery noted that bottles of its chardonnay, which DFS was selling for $4.40, have a normal retail price of $50.
“DFS received no special pricing on this product and sold it for significantly less than the cost to them.”
Smith MW said Pyramid Valley was “encouraged to hear that the local licensing bodies are investigating this alleged breach of advertising and host responsibilities with respect to the sale of alcohol”.
DFS has been approached for comment about the alleged breach and its pricing policy.
