Dan Murphy’s to fight for a store in Daylesford, after it was knocked back in landmark ‘harm’ decision

A landmark ruling to lock Dan Murphy’s out of Daylesford because it could cause harm to kids is being challenged by the liquor giant, which says it will actually bring community benefits.

Dan Murphy's will appeal a ruling that has locked it out of Daylesford. Picture: Aden Stokes

Liquor giant Dan Murphy’s is appealing a landmark decision that has locked it out of Daylesford amid claims “the positive community benefits” of what it would bring to the Victorian town were ignored.

The Victorian Liquor Commission (VLC) last month rejected an application from Dan Murphy’s to establish a store in the small spa town on the basis it posed a public risk and could “cause harm”, especially to kids through the secondary supply of alcohol.

It was the first time the new definition of “harm” under the Liquor Control Reform Act had been used to refuse a licence, with Hepburn Shire Council and community objectors labelling the decision a huge win for the town.

Dan Murphy's says it will bring 30 new jobs to the town. Picture: Aden Stokes

But Dan Murphy’s on Wednesday revealed to the Herald Sun it was now appealing the ruling because it believed “the commission erred in its decision and did not appropriately consider the positive community benefits of having a Dan Murphy’s in Daylesford”.

A spokeswoman for Endeavour Group, representing Dan Murphy’s, said it took particular issue with concerns about underage drinking being one of the main reasons a Dan Murphy’s store was knocked back.

“Like the community, we are concerned about the claimed levels of underage drinking and the alleged provision of alcohol to minors in Daylesford. If these claims are true, we believe that there are a number of opportunities for existing licensees and the community to work together to address this issue,” she said.

“Dan Murphy’s does not sell alcohol to minors and has an industry-leading approach to the requirement for identification to prove that our customers are adults. We run ID25 mystery shopping across our national retail network, and we reached 44m customers nationwide with messaging around responsible consumption in the 2024 financial year.

“We also have a ‘refusal of service’ policy that prohibits sales based on the risk of underage drinking and secondary alcohol supply and we exclude patrons from our premises for problematic behaviour.”

The main street of Daylesford, where Dan Murphy’s is not welcome.

Hepburn Shire Council CEO Bradley Thomas said both the council and community still believed that a Dan Murphy’s store would have negative impacts on the area.

“Council is disappointed by the Endeavour Group (Dan Murphy’s) decision to appeal the Victorian Liquor Commission ruling to refuse a licence to operate in Daylesford, however acknowledge that they have a right to an appeal process,” Mr Thomas said.

“Council and community strongly advocated for the refusal during the submission process and at hearings. We continue to believe that there is a public risk, and any decision to grant a licence would have adverse social impacts.

“Council will seek legal advice and determine what steps it will now take,” he said.

The Dan Murphy’s spokeswoman said the business would support local campaigns like DrinkWise’s ‘it’s OK to say nay’, which aimed to educate parents on the importance of saying ‘no’ to their kids if they wanted to consume alcohol under the age of 18.

The Daylesford community celebrated its win with the Victorian Liquor Commission's landmark decision to block Dan Murphy’s in August..

“We believe the entire liquor industry has a role to play in minimising alcohol related harm and that our experience and knowledge — when applied to Daylesford — could deliver a positive outcome for the community,” she said.

“In addition to lifting community standards, a Dan Murphy’s in Daylesford would create up to 30 new jobs, and will look to range local products that can be enjoyed responsibly by the Daylesford community and tourists alike.”

More than 200 residents of Daylesford — which is set to host filming of reality TV juggernaut The Block next year — objected to an application by the liquor store to establish itself in the town.

Hepburn Shire Council had approved of the use of the proposed Daylesford site for a Dan Murphy’s store in July 2022 and provided a planning permit, before later opposing it, the Endeavour Group spokeswoman said.