The Alcohol Regulatory and Licensing Authority (Arla) has banned 32 New World stores, including nine in Otago, from selling alcohol for 48 hours.
The affected stores are in Dunedin, Wānaka, Oamaru, Mosgiel, Queenstown, Alexandra and Cromwell.
On January 9, South Island branches promoted DB Export 24 packs of beer online, which were discounted by 26.1% for customers with a loyalty card.
The discount breached the Sale and Supply of Alcohol Act, which states it is an offence to promote or advertise discounts on alcohol of 25% or more.
Alcohol harm prevention team leader Sergeant Ian Paulin applied to have the premises banned from selling alcohol for five days.
The supermarkets involved argued the promotion was online and therefore not on a licensed premises.
Sgt Paulin submitted that police had issued guidance regarding online advertising last year following another Arla decision.
He said police had been fair, clear and transparent through the process and regularly updated the supermarket industry.
The authority said, “we do not consider that the conduct of a licensed premises should be confined to the physical building or footprint of the licence”.
The supermarkets argued they should not be suspended from selling alcohol as it would cause financial loss and might make customers stop shopping with them.
“Suggestions by the respondents that customers may be induced by a suspension to take all their shopping elsewhere are no more than speculative and irrelevant,” the authority said.
While Sgt Paulin sought a five day ban for each outlet, the authority enforced a 48 hour suspension.
“It was a very strong decision by the authority that certainly re-enforced to us the importance of taking these cases of this magnitude to the authority,” Sgt Paulin said.
“It sends a clear message that no one’s above the law and police won't hesitate to take action in cases like this.”
For all but three of the stores, the suspension would begin at 7am on October 8.
A Foodstuffs spokesperson said the issue occurred due to an “inadvertent process failure”.
“Foodstuffs South Island and its stores take their responsibility for the safe advertising, sale, and supply of alcohol very seriously,” the spokesperson said.
“Since then, we’ve implemented stricter processes to ensure this doesn’t happen again.”
They said all affected New World stores will comply with the Arla ruling.
