Gadoochi Brewery owners Nicola McGilvray and Chris Ellenden will appeal the decision from the Invercargill District Licensing Committee (DLC) which allowed them to sell their own products as well as cider and beer from Southland and Otago.
But the committee chairman said the decision had nothing to do with ILT and they were just following the rules of the Sale and Supply of Alcohol Act 2012.
Ms McGilvray said in 2019 they applied for an off-licence for their business, Tuatara Cafe, where they also run a brewery.
At the time, their application was denied due to the fact their premises did not yet qualify in a trust zone.
They were advised to establish a standalone business that manufactured alcohol first and foremost.
This led them to build an 1800-litre brewery which "pretty much" copied the business model of a previous brewery in Invercargill.
"We felt safe in the knowledge they [the previous brewery] had been granted an off-license with no restrictions.
"Adding to that, two other off-licences with no restriction have already been granted to individuals in the Invercargill trust area."
Ms McGilvray was then surprised with the decision from the licensing committee to grant them a licence with the condition they could only sell products they manufactured on their premises and craft beer and cider from the Otago-Southland area only.
"That doesn’t fit in our business structure, which is designed to support those breweries that support us.
"Most of our affiliations are with breweries outside of this regional limitation.
"I don’t think there would be much of a future for Gadoochi if we were to be confined to the Southland-Otago region.
"It makes it extremely difficult to structure a business when the goal posts keep moving."
The owners said they were not against ILT, but believed it was becoming hard to start a business in a trust area.
Mr Ellenden believed their business could operate without such restrictions in Invercargill, which is a licensing trust area, as there were five other breweries in West Auckland’s trust area which were granted off-licences with no restrictions.
They would appeal the decision.
Invercargill District Licensing Trust chairman Darren Ludlow said the off-licence that they applied for in 2019 was for their own product and, initially, for this new one application, the same thing happened.
But after a conversation with the licensing inspector, they said they wanted to be able to sell other products as well, he said.
ILT chief executive Chris Ramsay said it made a submission to their application, but it did not object to their licence application and did not attend their liquor licence hearing.
"They have received a liquor licence for the manufacture and sale of their own products, and the DLC has generously allowed them to sell other craft beer products on top of this.
"So, I believe their brewery and products would be a great addition to the Invercargill craft beer scene — and even the tourism sector if they chose to also include brewery tours and other related activities."
