Thirty-two New World supermarkets throughout the South Island will have their off-licenses suspended for 48 hours.
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A two-day suspension from selling booze for most New Worlds in the South Island will be a major financial blow, an alcohol watchdog says.
Thirty-two New World supermarkets throughout the South Island will have their off-licenses suspended for 48 hours for breaching online alcohol advertising rules.
The Alcohol Regulation and Licensing Authority (ARLA) released its reserved decision on Friday, ordering a suspension of the supermarkets’ licences to sell alcohol in the South Island.
Three of the police’s applications were dismissed by the authority.
Alcohol Healthwatch executive director Andrew Galloway told Midday Report police deserved credit for how they had handled the process.
“They have been very fair in dealing with both supermarkets on the rules around price promotion and have previously warned this particular supermarket chain,” he said.
“We’re pleased for the result and we commend the police on taking the application and [the authority] for the very good decision.”
Inspector Ian Paulin sought the suspension of liquor licences for the New World stores for an alleged violation of the Sale and Supply of Alcohol Act earlier this year.
The breaches related to the online promotion of DB Export Gold and Ultra Low Carb products on 9 January, that were advertised at a 26.1 percent mark down for club card owners.
Under Section 237 1B of the Act, the promotion of discounts of alcohol products of more than 25 percent is prohibited, unless on licensed premises.
A two-day hearing in front of the ARLA was held in the Christchurch District Court last month. In its decision, the authority found 32 of the stores in breach, suspending their off-licences for 48 hours – most of which will begin at 7am on Tuesday, 8 October.
During the hearing, prosecutors said the facts in the case were “inarguable” and the licence-holders were trying to “shield themselves away from liability by hiding behind a complex corporate structure”.
Prosecutors also sought a five-day suspension for all licensees in their closing remarks.
Galloway said he felt ARLA had taken “the relative factors into account” when handing the punishment down.
“It’s a warning with the promotions you have with alcohol. You have to be really careful.”
During the case, defence lawyers for Foodstuffs South Island (FSSI) argued the breach was at the “lower end of the scale” and the result of “an honest mistake” because a final pricing check was not carried out at FSSI’s end, who were acting as agents for the stores.
When asked if he believed it was an “honest mistake”, Galloway told Midday Report he was unsure.
“I won’t be drawn on whether it was innocent, or otherwise. Supermarkets sell – as evidenced in the decision – 31 percent of all alcohol consumed. That’s a huge amount of revenue and they’ve got the resources to do better.
“There’s no real out for them.”
Foodstuffs said it had since implemented stricter processes.
Galloway said the 48-hour suspension would be a “big financial hit” for the supermarkets.
“Forty-eight hours would be significant. The amount of alcohol that is consumed… you can just imagine. [There’ll be] potentially some reputational damage as well.”