Many New Zealand businesses profit from the sale of liquor to the public. This includes grocery stores, liquor stores and other businesses that serve food and beverages. In order to do this, each individual business must obtain a liquor licence from their local council. The license that is granted will have specific stipulations and conditions regarding the sale of alcohol, such as where it can take place and to whom.
In 2012, the Sale and Supply of Alcohol Act (also referred to as the Act) outlined these two main parameters regarding the sale and consumption of liquor:
- The sale, supply and consumption of alcohol should be undertaken both safely and responsibly
- The harm that is caused as a result of the consumption of alcohol should be minimized as much as possible.
These new guidelines help form the criteria for which each application for a liquor licence is assessed.
Types of Licences
There are four types of liquor licences offered in New Zealand:
- On-licence: Allows for sale and consumption of alcohol on the premises. This would include restaurants, pubs, bars, planes, trains, entertainment venues and hotels.
- Off-licence: Supermarkets and liquor stores are required to have this type of licence, as it allows for the sale and consumption of the liquor off the premises. In other words, customers purchase it to drink at home or a neighbour’s house, etc.
- Club-licence: This applies to sports clubs, men’s clubs, etc. The licence allows for the consumption of alcohol on the premises to registered members of the club or organisation and their guests.
- Special licence: This type of licence is granted for one-time events, such as beer/wine festivals or weddings. It allows the sale or supply of alcohol to anyone of age attending these functions and special events. These types of licences specify whether it can be consumed on-site at the event or taken off-site, to be consumed elsewhere.
The first three types of licences listed above are generally granted for one year and have to be renewed each year. The last type, the special licence, is granted for a single event or series of events.
Applying for a Liquor License
Individual District Licensing Committees, or DLCs, process applications for each territorial authority. The Alcohol Regulatory and Licensing Authority (ARLA) may also be involved in the application process as well, especially if an application is contested. Both the DLC and ARLA use default guidelines outlined in the Act to help them arrive at a decision. When considering a license, both the DLC and ARLA consider numerous other factors, including:
- Any existing, relevant local alcohol policy in the area where the licence is to be granted
- The days and hours of sale
- The design and layout of the business where the alcohol is to be sold
- Whether or not the business sells other goods besides alcohol
- Whether or not the good order or amenity of the area would be reduced
The Health Promotion Agency (HPA) of New Zealand offers a guide for business owners interested in applying for a liquor licence. It details the process and outlines a general time line for applying if you’re starting a new business that might need a liquor licence.
With this information in mind, businesses can make informed decisions when applying for a liquor license. While it is a multi-faceted, involved process, the benefits are many, including increased profit and more customers.
Many New Zealand businesses profit from the sale of liquor to the public. This includes grocery stores, liquor stores and other businesses that serve food and beverages. In order to do this, each individual business must obtain a liquor licence from their local council. The license that is granted will have specific stipulations and conditions regarding the sale of alcohol, such as where it can take place and to whom.
In 2012, the Sale and Supply of Alcohol Act (also referred to as the Act) outlined these two main parameters regarding the sale and consumption of liquor:
- The sale, supply and consumption of alcohol should be undertaken both safely and responsibly
- The harm that is caused as a result of the consumption of alcohol should be minimized as much as possible.
These new guidelines help form the criteria for which each application for a liquor licence is assessed.
Types of Licences
There are four types of liquor licences offered in New Zealand:
- On-licence: Allows for sale and consumption of alcohol on the premises. This would include restaurants, pubs, bars, planes, trains, entertainment venues and hotels.
- Off-licence: Supermarkets and liquor stores are required to have this type of licence, as it allows for the sale and consumption of the liquor off the premises. In other words, customers purchase it to drink at home or a neighbour’s house, etc.
- Club-licence: This applies to sports clubs, men’s clubs, etc. The licence allows for the consumption of alcohol on the premises to registered members of the club or organisation and their guests.
- Special licence: This type of licence is granted for one-time events, such as beer/wine festivals or weddings. It allows the sale or supply of alcohol to anyone of age attending these functions and special events. These types of licences specify whether it can be consumed on-site at the event or taken off-site, to be consumed elsewhere.
The first three types of licences listed above are generally granted for one year and have to be renewed each year. The last type, the special licence, is granted for a single event or series of events.
Applying for a Liquor License
Individual District Licensing Committees, or DLCs, process applications for each territorial authority. The Alcohol Regulatory and Licensing Authority (ARLA) may also be involved in the application process as well, especially if an application is contested. Both the DLC and ARLA use default guidelines outlined in the Act to help them arrive at a decision. When considering a license, both the DLC and ARLA consider numerous other factors, including:
- Any existing, relevant local alcohol policy in the area where the licence is to be granted
- The days and hours of sale
- The design and layout of the business where the alcohol is to be sold
- Whether or not the business sells other goods besides alcohol
- Whether or not the good order or amenity of the area would be reduced
The Health Promotion Agency (HPA) of New Zealand offers guides for business owners interested in applying for a liquor licence. It details the process and outlines a general time line for applying if you’re starting a new business that might need a liquor licence.
With this information in mind, businesses can make informed decisions when applying for a liquor license. While it is a multi-faceted, involved process, the benefits are many, including increased profit and more customers.
For further information about this article, contact your nearest LINK Business Broking office
