When buying alcohol, people have two choices: supermarkets or liquor stores. This choice affects what types of alcohol they can purchase. Many people are aware that supermarkets cannot sell spirits or spirit-based beverages, but the range of alcoholic beverages available in supermarkets is more limited than some might expect. Beverage makers experimenting with new and inventive styles of alcoholic beverages may struggle to comply with these limitations.

What are the benefits of selling alcoholic beverages in supermarkets?

Aside from the obvious commercial benefit of having another sales avenue beyond liquor stores, supermarkets also attract a much larger number of customers. More customers mean more potential sales for beverage makers and greater marketability for their products.

What alcohol can be sold in supermarkets?

The restrictions for supermarkets are set out in the Sale and Supply of Alcohol Act 2012. The Act is very prescriptive; if a drink does not fall under the allowed alcoholic beverages, it cannot be sold in supermarkets.

Section 58 of the Act allows alcohol to be sold in supermarkets, provided it contains no more than 15% ethanol by volume measured at 20°C and is:

• beer;
• mead;
• fruit or vegetable wine;
• grape wine; or
• food flavourings for culinary purposes.

The relevant definitions for these terms are set out under the Australia and New Zealand Food Standards Code.

The challenges for beverage makers

Beverage makers, especially those creating inventive new types of beverages, may face difficulties in ensuring their products fit into one of these accepted beverage categories. Compliance with these strict definitions is crucial for gaining access to the supermarket market. With the increasing popularity of drinks such as alcoholic kombucha, alcoholic ginger beer, and seltzers, the drive for beverage makers to produce new and exciting types of alcoholic beverages is higher than ever. However, these innovative beverages often involve variations on traditional alcoholic drinks, making it challenging to ensure the end product still complies with the Act.

Avoiding fines and confusion with your drinks

Therefore, beverage makers who wish to sell their products in supermarkets need to be aware of the legal requirements and implications of their production methods and ingredients. They also need to ensure that their labels and marketing materials are accurate and compliant with the relevant regulations.

If you have any questions or concerns about how to classify your alcoholic beverages or need help navigating the complex landscape of liquor laws and regulations in New Zealand, please get in touch with one of our experts.

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