Aldi’s supermarket booze bid rejected by independents, winemakers
German supermarket chain Aldi believes it has the support of the public to sell alcohol in its SA supermarkets – but it faces stiff opposition from local independent supermarkets and winemakers.
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Independent supermarkets and local winemakers are vowing to fight Aldi’s contentious plans to sell alcohol in its SA supermarkets.
The South Australian Wine Industry Association (SAWIA) and Australian Hotels Association have both lodged formal objections to the German chain’s application for liquor licences at six stores, while independent retailers say approval would result in an uneven grocery playing field.
Aldi has applied for a “producer’s licence” at its Newton, Blackwood, Aldinga, Adelaide Airport, Hawthorn and Victor Harbor stores.
While packaged liquor licences specifically prohibit supermarkets from selling alcohol, a producer’s licence allows its holder to sell alcohol it produces, similar to the conditions under which cellar doors operate.
If approved, the licence would allow Aldi to sell its private label range of wine, beer and spirits.
SAWIA chief executive Brian Smedley fears that would drive down retail wine prices and hurt the state’s wine tourism industry.
“It would be limited to their own labels and so the number of winemakers to benefit from that is probably going to be small,” he said.
“The issue for us is what does it do to our pricing mechanism? In South Australia we’re trying to premiumise our product offering and this would send a message that’s inconsistent with that whole philosophy.
“I know some people would like the convenience of being able to put it (alcohol) in their shopping trolley rather than having to go to an extension of the shop with a separate checkout, but we do have to take cognisance of the prospect of people under the age of 18 being even more exposed to alcohol.”
However, Aldi Australia SA managing director Viktor Jakupec said the retailer “strictly observes all regulations for the purchase of alcohol” in Australia, and partnered with DrinkWise Australia as part of its commitment.
“What we are hearing is that the public of South Australia strongly supports Aldi operating its liquor service in SA,” he said.
“(Aldi’s) range is carefully selected and limited to a small segregated and clearly delineated area within store, approximately one quarter of the size of a standard bottle shop.
“This means that the liquor area is covered by excellent surveillance, alcohol purchases must be made during the limited opening hours of the store, and customers must enter the Aldi supermarket environment to purchase liquor.”
South Australia and Queensland are the only states where supermarkets are prevented from selling alcohol.
In 2013, Drakes Supermarkets owner Roger Drake supported a failed campaign to allow bottled wine to be sold in South Australian supermarkets.
While he objects to Aldi’s bid to secure a producer’s licence, he said the time was right for a fresh debate on the state’s restrictive liquor licensing rules.
“I believe we should have bottled wine and beer in our supermarkets,” he said.
“There’s no doubt that if you go to New Zealand or other states you can see wine and food do go together.
“But we can’t let one chain do something and others not.
“We’re (South Australia) famous for some great wines, and if we want to stay famous for something then we should sell branded wine (in supermarkets) and put SA on the map.”
Recent liquor licensing changes have replaced a “needs test’ – which put the onus on the licence applicant to demonstrate why a licence is necessary in the area – with a less onerous test based on community interest.
Foodland chief executive Con Sciacca warned other major supermarket chains could follow suit if Aldi’s application was successful.
“If they are a producer they’d have to own the manufacturing site and my understanding is that they (Aldi) don’t – it makes a mockery of what’s been done to date and I don’t think government would fall for something that I’d say is quite cute,” he said.
“If the precedent’s set then no doubt other retailers – you just have to look at Woolworths which does actually own production sites – would be contemplating any benefit of seeking similar opportunities.”
In a statement, Romeo’s Retail Group said approval of Aldi’s application would hurt independent liquor stores and local wine producers.
“We feel there is already a big enough liquor market in South Australia to be sustainable and support local producers, without another foreign owned business entering the local market,” it said.
In each of Aldi’s six liquor licence applications, it proposes to establish separate display areas adjacent to the store’s check-outs.
A decision on Aldi’s application is expected in the new year.