South Australian grocers push to sell wine in aisles
A COALITION of South Australian-owned grocers want to sell alcohol in their stores, in a move they are promoting as a boost to the wine industry.
A COALITION of South Australian-owned grocers want to sell alcohol in their stores, in a move they are promoting as a boost to the wine industry.
Foodland and the Independent Grocers Association have approached the State Government and asked it to change existing liquor laws and let them sell bottled wine.
They argue that several other states already allow in-store liquor sales and the move would open up new markets for smaller SA wine makers who currently struggle to make sales to the two dominant supermarket chains.
Both Coles and Woolworths already have their own liquor store chains. They stock wine, champagne, beer, liqueurs and spirits.
These stores are often located adjacent to their supermarkets.
Foodland and IGA operators say the cost and bureaucracy of getting a "full-blown" licence is prohibitive and they have no business interest in stocking products other than quality SA bottled wine.
Business Services and Consumers Minister John Rau says the proposal is worthy of consideration and will release a discussion paper early in the new year seeking feedback on issues, including how to prevent sales to minors.
The move has attracted criticism it will increase under-age drinking.
Foodland Group chairman Roger Drake told The Advertiser that selling bottled wine would open up new options for customers, including the ability to recommend pairings with food.
"It makes sense that if South Australia is to be the wine capital of Australia, at least we have wine within our supermarkets.
"It's a tradition right around the world," he said.
"We approached the government, saying that with Coles and Woolworths having huge dominance in house brands, we believe that it is important for SA wineries to have some representation.
"I think it's going to be the lifesaver for South Australian wine."
IGA chairman Joseph Romeo said the move would allow for hyper-local offerings, such as wine from Stirling being sold in Adelaide Hills supermarkets and McLaren Vale products in the city's south.
"Us as locals, and that's who we are, support other locals," he said. "That's what we're about and the consumer will be the biggest winner.
"It's a big snowball effect to keeping more jobs in SA." Victoria, NSW, the ACT and New Zealand all allow in-store supermarket alcohol sales to varying degrees.
Mr Rau said a scaled-down liquor licence could be created in SA, similar to those planned for small bars.
"What we're discussing is a separate class of licence where if all the person wants to do is sell wine and nothing else, then they apply for this class of licence," he said. "I cannot see why Coles and Woolies should be able to have next door, or even in part of their building, a full-blown wine shop with everything from beer to Scotch and these smaller, independent competitors of theirs are not entitled to have anything."
It is expected the licence would also remove current requirements for the seller to prove there is a "need" to grant the licence to cater for public demand in their area, cutting red tape and cost. Australian Hotels Association SA general manager Ian Horne said the move was "tantamount to complete deregulation" and came amid increased costs for traditional pubs and clubs.
"We've seen in so many other industries now that if you open it up to the power of the supermarket, you just eliminate small and medium business," he said.
SA Network of Drug and Alcohol Services executive officer Andris Banders said in-store sales could increase the risk of secondary sales to young people and normalise alcohol consumption.
"Across society, alcohol is extremely freely available and there is no need to extend that further," he said. "There is an increased risk of people buying in-store and then selling to someone outside."
Winemakers Federation of Australia chief executive Paul Evans said the proposal could provide a "valuable route to market" for small producers unable to crack traditional bottle shops.
"Restricting this initiative to wine is a great vote of confidence in Australian produce and supporting regional jobs and local communities," Mr Evans said.