A Queenstown-based company which found itself the "guinea pig" of new legislation under the Sale and Supply of Alcohol Act has been allowed to keep its off-licences.
Beaver Liquor Ltd owns five Betty’s Liquor stores in Queenstown and Wanaka but found itself under the microscope last year and at risk of losing its licences
because its stores were not selling enough alcohol in comparison to other products, for example, tobacco.
Under the legislation, at least 85% of annual sales revenue for a bottle or liquor store must come from alcohol sales.
Before a hearing last year, the company was asked to provide annual sales revenue for each of the Betty’s stores, but instead gross profit figures were pro
vided.
According to the gross revenue figures, all five stores would fail to meet the 85% rule, based on the high cost of cigarettes, attributable to Government excise
and taxes.
However, if the cost of sales including taxation was deducted, Betty’s stores would be compliant.
Following an initial hearing in August last year, the committee issued an interim decision calling for a new business plan from the applicant.
That was provided, but when the hearing resumed in December, committee chairman Judge Bill Unwin said the plan was not "helpful" and lacked detail.
At that hearing, board chairman Russell Gray said the company intended to revert to a former business model.
Under that, Queenstown’s Cow Lane store was to be used as the "flagship distributor" where supply was bought in and then distributed to other trade customers, including bottle stores and Good Group Ltd.
The company also planned to reduce the number of tobacco products by a third in each store.
Combined with increasing online sales it hoped to lift alcohol sales to at least 85%.
The company was given six months to meet its obligations in all five outlets, with figures to be audited or verified by McCulloch and Partners.
In his decision, commissioner Lyal Cocks said Beaver Liquor Ltd director Ferg Spary provided verified figures on June 6, show ing all five now met the legal
obligations.
"Now that we have been presented with the verified out comes of a new business model resulting in the sales of alcohol achieving the 85% threshold in
all five outlets, we have decided to make the interim decision final without a further public hearing."
The off-licences were renewed.
