McLennan Grocery Store in South Auckland has had its off-licence revoked, just months after it was approved. The Alcohol Regulatory and Licensing Authority (ARLA) found the Papakura shop did not meet the criteria for a grocery store under the Sale and Supply of Alcohol Act, following an appeal against the Auckland District Licensing Committee’s March 2025 decision.
Rebrand and Operational Adjustments Secure Initial Approval
The store’s application for an off-licence, lodged by Baj Holdings Ltd in September 2024, followed a rebrand from McLennan Convenience Store to McLennan Grocery Store. The company proposed limiting alcohol sales to 8pm.
Although the local medical officer opposed the application at first, the objection was later withdrawn after observing more food items on display and the use of shopping baskets.
The Auckland District Licensing Committee granted the licence in March 2025, noting that the store met legislative requirements and was consistent with the object of the Sale and Supply of Alcohol Act, despite six public objections.
Licensing Appeal Challenges Grocery Store Classification
The appeal, filed by councillor Angela Dalton in June 2025, asked whether the Papakura store met the legal test for a grocery shop.
The challenge cited Section 33 of the Sale and Supply of Alcohol Act, which states that grocery stores must emphasise food sales and possess typical grocery characteristics. Convenience stores, as specified in the Act, are not allowed to sell alcohol.
ARLA Identifies Convenience Store Operations During Inspection
ARLA found that the McLennan store failed to meet the operational standard of a grocery store, citing observations from a site visit.
ARLA noted in its ruling, :“The shop certainly had aspects that could be attributed to those expected of a grocery store but those aspects appeared to be secondary to other aspects of the business that appeared to us to be correctly and appropriately those of a convenience store.”
Inspectors reported limited space for grocery staples and greater prominence given to non-food items such as drinks and takeaways. The presence of a vape store and just two shopping baskets further supported the conclusion.
Community Group Supports ARLA’s Enforcement Decision
Dr Grant Hewison, secretary of Communities Against Alcohol Harm, said the decision reflects a clear regulatory stance. “This decision will be welcomed by many in the Papakura community,” he said.
“It’s encouraging to see ARLA taking a firm stance on the difference between convenience stores and grocery stores to avoid alcohol being sold from convenience stores.” He added,
“Parliament made it clear in the Sale and Supply of Alcohol Act that liquor shouldn’t be sold from ‘convenience’ stores.”
The ruling serves as a warning for businesses attempting to rebrand without making substantive operational changes. It reinforces the importance of aligning store functions with the legal definitions under the Act and ensuring transparency during the licensing process.