New World Gardens sought to renew its off-licence at a hearing of Dunedin’s district licensing committee on Monday.
Their application was met with opposition by police and members of the student community.
Police sought the imposition of two conditions: no single sales of beer or cider 500ml or less (excluding craft beer) and no external advertising on the premises.
Students for Sensible Drug Policy (SSDP) president Jai Whelan said the premises was near student accommodation in North Dunedin, one of the highest areas of alcohol harm in Dunedin, and in proximity to the Dunedin Botanic Garden which was a common location for first-year students to consume alcohol.
Hold On To Your Friends (HOTYF), another student advocacy group, was called as a witness, and spokeswoman Louisa Mason said poor regulation was to blame for a binge-drinking culture.
"It is my firm belief that student culture has become binge-drinking culture and this is purely because of poor regulation of alcohol and the fact that students have very easy access to high-strength, cheap alcohol," Ms Mason said.
"You can’t put a bunch of young adults in an area with easy access to high-strength alcohol that is very cheap and expect them to make the choice to not take it, considering they are a vulnerable population for hazardous drinking."
The 21-year-old had attended Unicol in 2020 and lived in Castle St in 2021.
In her brief of evidence, Ms Mason said her flat stockpiled alcohol and engaged in routine drinking from noon during the Covid-19 lockdown.
"When lockdown was announced, we got in the car and we drove to the liquor store, just like every other student," Ms Mason said.
In her evidence, she said sustaining this routine was only possible due to the accessibility and proximity of New World Gardens.
Basnef Limited counsel Iain Thain noted supermarkets were an essential service, so remained open during lockdown while liquor stores were closed.
But Ms Mason said had other liquor stores been open, her flat would have gone to the supermarket anyway given the price point and selection of products.
Her friend would buy "ridiculously strong" cask wine from the supermarket which contained almost 30 standards for less than $30, more standards than it was per dollar, she said.
A licensing inspector reported the supermarket sold a range of 500ml low-cost, high-strength beers, the strongest being an 8.8% product for as little as $4.99 per unit.
Sergeant Steve Jones said it was undisputed the nearby student population was regarded a vulnerable community with regard to alcohol harm.
Salmond College, Knox College and Aquinas College, homes to about 654 students, were all within 600m of the supermarket.
However, he clarified the supermarket was not the only alcohol vendor within an 800m radius of the area.
Mr Thain said New World Gardens owner Craig Broderick had not owned the supermarket during the period referred to by Ms Mason.
Mr Broderick had acquired the store in April last year, and had made changes in the subsequent years, Mr Thain said.
