High Court rules supermarkets can change liquor display layouts

Tuesday, 29 May 2018

An attempt to clampdown on how supermarkets display alcohol has failed in the High Court.

The case settled a dispute over whether supermarkets must stick with the alcohol-display area layout they had when granted a licence, or if they could reorganise shelving and displays within the same footprint.

MidCentral District Health Board medical officer of health Rob Weir filed the appeal, objecting to a licence renewal application by New World Dannevirke.

Weir said two large shelves at the supermarket had been shifted diagonally, instead of being at right angles to a wall, as in the original licence plan, and three more display plinths replaced one previously in place.

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The boundaries of the alcohol section had not been changed, but the new displays meant more alcohol and signage was visible from other areas of the supermarket, and so did not minimise customers' exposure to it, he said.

When the issue was raised by Weir in 2015, the Tararua District Licensing Committee investigated, but decided to reissue the licence to New World.

He appealed the decision to the Alcohol Regulatory and Licensing Authority, which said the rules in question were about where the alcohol area was in the store.

The High Court hearing was held on October 31 and November 1 last year and justice Karen Clark released her decision this month.

Clark found there was no significant 'error of law' from the committee and authority.

'The description of the alcohol area is not required to include the configuration and arrangement within the area itself… The licensee remains free to rearrange the area without the approval of the licensing body.'

However, the licensing body still had freedom to make rulings to limit exposure of shoppers to displays promoting alcohol, she said.

New World Dannevirke owner operator Garry Hasler said the decision was the right one.

'From my point of view it's good it's all sorted.' 

The case was among a series where liquor sale laws have been tested. In 2015, a decision by the Alcohol and Regulatory and Licensing Authority to allow supermarkets to display alcohol on the ends of aisles was overturned by a High Court Decision.

Away from court, ​Weir said the case had been valuable, as some of its findings could guide future objections by public health officers to licensing. 

About 15 per cent of adults within the MidCentral board's boundaries drink more than six drinks in one sitting at least once a month, and reducing exposure to alcohol reduces harm from it, he said.  

'It has been necessary to use the provisions for appeals to the High Court on questions of law…  to obtain clarification of a number of legal issues as they have arisen.' 

'The decision covers a number of new matters which have not been determined previously. All parties will need to reflect on what they mean for future applications.'