KEY POINTS:
A Liquor Licensing Authority decision to prevent a Christchurch supermarket from opening a bottle store on its premises has been welcomed by charitable trust Alcohol Healthwatch.
Supermarket giant Progressive Enterprises had sought to open a bottlestore within the building footprint of its Countdown store on Moorhouse Avenue, in
central Christchurch.
The application was based on a "store within a store" concept, where customers would enter the bottle store via a foyer accessed through the main Countdown entrance.
Supermarkets are prohibited from selling alcohol other than wine, beer and mead.
Progressive argued two of its competitors - The Warehouse and Foodstuffs - had made the transition from selling only wine and beer to selling all types of liquor.
The Warehouse had established a "store within a store" concept at several of its outlets, and Foodstuffs had established stand-alone bottle stores known as "Duffy and Finn" and "Henry's".
The company acknowledged the sales of liquor other than beer and wine had been identified as an area the supermarket chain could expand its sales and profit growth.
The District Licensing Agency inspector, police, the Medical Officer of Health, the Alcohol Advisory Council, and the Hospitality Association all opposed the application, primarily on the grounds it went against the intent of the Sale of Liquor Act, and it would set a precedent for other supermarkets.
It was also argued the supermarkets' buying power could lead to heavy discounting on youth-targeted alco-pops. This had already happened with wine and beer in supermarkets.
The authority said the application marked a test case.
In turning down the application, the authority said the meaning of the law was "unequivocal".
Supermarkets were authorised only to sell wine, mead and beer.
The authority said there may be a case for reviewing the licences given to The Warehouse, if it emerged the principal business of The Warehouse Cellars was not selling liquor.
It said the bottle stores operated by Foodstuffs were stand-alone shops and there was nothing to stop supermarkets from opening bottle stores providing the business was separate and distinct.
By contrast, the Countdown proposal was for a store within the same premises, using the same branding and colour scheme.
Progressive had argued customers would see two different businesses.
"We respectfully disagree...the company has been unable (or unwilling) to achieve realistic separation."
The authority said if Progressive was granted a full licence, it was likely to lead to discounting of alco-pops.
"That commercial initiative will, in turn, be unlikely to contribute to the reduction of liquor abuse."
Alcohol Healthwatch director Rebecca Williams said the decision brought "huge relief to those with an interest in alcohol-harm prevention and put the brakes on the continuous undermining of the Sale of Liquor act by industry players".
Since supermarkets had been allowed to sell wine and beer, price competition had been fierce, Ms Williams said.
Price was a key influencer of the amounts of alcohol people consumed, Ms Williams said.
- NZPA