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| Column - F&B Magazine Supermarkets Revisited Supermarkets’ involvement in liquor retailing seems set to go up another level with applications for full liquor licences to be considered shortly in Christchurch, Lower Hutt and Porirua. These applications are for a full liquor licence to sell beer, wine and spirits from what constitutes a store within a store. Based on the current practice of supermarkets using alcohol as a loss leader, a wave of discounted spirits and RTDs can be expected as a result. While some supermarkets are already selling spirits, this has been through the establishment of stand alone businesses such as Duffy and Finns. This new wave by Progressive Enterprises stretches the letter of the law and certainly pushes the spirit of the law, with access to the liquor store available through the supermarket. Simply having a liquor store alongside the supermarket proper, accessible only across the same site, means effectively that the supermarket is able to achieve a full off-licence, something contrary to the spirit and policy of the Sale of Liquor Act. Parliament, in agreeing that beer and wine can be sold in supermarkets, did so explicitly on the basis that they were an adjunct to mainstream household food products. Furthermore, Parliament explicitly determined that supermarkets can not sell spirits. This latest aggressive approach by supermarkets invites politicians to revisit the law to ensure their original intent is upheld, being that supermarkets may sell beer and wine in a responsible way as an adjunct to food products, while spirit sales are the preserve of specialist liquor retailers in separate retail outlets. This ensures that retailing of spirits and high alcohol products occurs in a responsible way. It appears likely that these recent applications are all going to be considered by the Liquor Licensing Authority. The Liquor Licensing Authority will have the opportunity to rule on just what constitutes a separate retail operation and whether a store within a store meets Parliament’s wishes. Depending on the outcome of those hearings, it may be no surprise if politicians take another look at supermarkets and the Sale of Liquor Act. Bruce H Robertson |
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