LCQ Off-Licence and On-Licence Differences 1 — Questions and Answers
Question 1: Under the Sale and Supply of Alcohol Act 2012, what is the fundamental difference between an on-licence and an off-licence in NZ?
- On-licences allow alcohol to be consumed on the premises; off-licences allow alcohol to be sold for consumption off the premises (Correct answer)
- On-licences are for restaurants only; off-licences are for supermarkets only
- Off-licences may sell alcohol 24 hours a day; on-licences may only trade until midnight
- On-licences cannot sell bottled alcohol; off-licences cannot serve alcohol by the glass
Correct answer: On-licences allow alcohol to be consumed on the premises; off-licences allow alcohol to be sold for consumption off the premises
An on-licence authorises the sale and supply of alcohol for consumption on the licensed premises. An off-licence authorises the sale of alcohol for consumption off the premises (e.g., taken home).
This is the foundational distinction in NZ alcohol licensing. An on-licence covers hospitality premises (bars, restaurants, hotels) where patrons buy drinks and consume them on site. An off-licence covers retail alcohol premises (bottle stores, supermarkets) where alcohol is purchased to take away. Different rules apply to each: on-licences must provide food and water, have certain intoxication management obligations while people are on the premises, whereas off-licences focus on point-of-sale control.
Question 2: Under NZ law, what are the default maximum trading hours for off-licensed premises?
- 7 am to midnight
- 8 am to 10 pm (Correct answer)
- 6 am to 10 pm
- There are no default hours — off-licences can set their own
Correct answer: 8 am to 10 pm
The default maximum trading hours for off-licensed premises under the Act are 7 am to 11 pm. Note: some sources vary — the Act sets 7 am to 11 pm for off-licences.
Under the Sale and Supply of Alcohol Act 2012, the default maximum trading hours are: on-licences — 8 am to 4 am; off-licences — 7 am to 11 pm; club licences — 8 am to 1 am. A Local Alcohol Policy can restrict these hours further. The DLC can grant hours up to the default maximum when issuing a licence. Trading beyond these maximums is not permitted.
Question 3: In NZ, can a supermarket (off-licence) sell alcohol in a designated area separate from general grocery items?
- No — alcohol must be integrated with general grocery items in NZ supermarkets
- Yes — under the Act, off-licences within general retail premises may be required or may choose to restrict alcohol to a designated area (Correct answer)
- Only if the supermarket has a separate entrance for the alcohol area
- Only supermarkets with fewer than 5,000 square metres of floor space can designate separate alcohol areas
Correct answer: Yes — under the Act, off-licences within general retail premises may be required or may choose to restrict alcohol to a designated area
The Act allows and some Local Alcohol Policies require alcohol in supermarkets to be located in a clearly designated area, which can make it easier to control access and comply with age-checking requirements.
Many NZ supermarkets voluntarily locate their alcohol in a separate or gated area of the store. Some Local Alcohol Policies actively require this as a condition of off-licences within general retail stores. A designated area makes it easier to ensure that age verification happens at a single point, and can reduce impulsive alcohol purchases. The Act allows the DLC to impose such conditions on off-licences.
Question 4: Under NZ law, can an off-licensed premises sell alcohol in the same area where children's food or confectionery is sold?
- Yes — there is no restriction on the placement of alcohol relative to other products
- The Act and DLC conditions may restrict alcohol display in areas frequented by children, and off-licences must not display alcohol alongside products that primarily appeal to children (Correct answer)
- Only if a parent is present
- Only if the alcohol section is behind a physical barrier
Correct answer: The Act and DLC conditions may restrict alcohol display in areas frequented by children, and off-licences must not display alcohol alongside products that primarily appeal to children
Responsible retailing principles and some DLC conditions restrict the placement of alcohol away from products that primarily appeal to children, as part of minimising exposure of young people to alcohol products.
While the Act does not contain a blanket prohibition on where within a store alcohol may be displayed relative to other products, responsible retail guidelines and DLC conditions often address the placement of alcohol to minimise its visibility and accessibility to children. Placing alcohol prominently alongside confectionery or children's products would raise concern at any DLC review and could be cited as a failure to meet the spirit of host responsibility.
Question 5: Under NZ law, is a duty manager required to be present in a supermarket when the off-licence section is open?
- No — duty managers are only required for on-licences
- Yes — a certified duty manager must be on duty whenever any type of licence is selling alcohol (Correct answer)
- Only after 9 pm when the risk of alcohol-related issues increases
- Only if the supermarket has more than 100 staff on duty
Correct answer: Yes — a certified duty manager must be on duty whenever any type of licence is selling alcohol
The requirement for a certified duty manager to be on duty whenever alcohol is sold applies to all licence types, including off-licences in supermarkets.
Regardless of whether the licensed premises is a nightclub, a restaurant, a bottle store, or a supermarket off-licence, the Act requires that a holder of a current manager's certificate be on duty whenever alcohol is being sold or supplied. Large supermarket chains must ensure they have sufficient certified managers rostered to cover all trading hours in the off-licence area.
Question 6: In NZ, what is the primary compliance obligation of an off-licence duty manager regarding patron intoxication, compared to an on-licence?
- Off-licence duty managers have no intoxication obligations as patrons consume alcohol off-premises
- Off-licence duty managers must refuse to sell alcohol to any person who appears intoxicated, even though consumption will occur off-site (Correct answer)
- Only the Police can make intoxication assessments at off-licences
- Off-licence duty managers must assess intoxication only if the patron is carrying an open container
Correct answer: Off-licence duty managers must refuse to sell alcohol to any person who appears intoxicated, even though consumption will occur off-site
Off-licence duty managers must not sell alcohol to a person who appears intoxicated, even though that person will be consuming the alcohol off-premises. The prohibition on supply to intoxicated persons applies to both on-licences and off-licences.
While the ongoing management of intoxication on the premises is unique to on-licences (since patrons are not consuming on-site at an off-licence), off-licence duty managers still have a legal obligation not to sell alcohol to a person who appears to be intoxicated at the time of purchase. This reflects the Act's broader harm minimisation goal — selling alcohol to an already-intoxicated person to take away is just as problematic as serving them on-site.
LCQ Off-Licence and On-Licence Differences 1
Under the Sale and Supply of Alcohol Act 2012, what is the fundamental difference between an on-licence and an off-licence in NZ?