Hundreds of convenience stores are set to lose their liquor licences after a landmark Christchurch ruling.

In a decision released this week, the Liquor Licensing Authority declared its intention to change its nine-year stance and reclassify convenience stores as dairies, which cannot sell alcohol, rather than grocery stores.

A grocery can sell alcohol.

The authority found the Victoria Night "n" Day Foodstore, opposite the Christchurch Casino in Victoria St, was not a grocery store and would probibly have its liquor licence application declined when it came up for renewal in March.

In 2000, an authority decision allowed convenience stores to be included as grocery stores.

In this weeks decision, the authority said that approach was "contrary to the terms" of the Sale of Liquor Act.

It said the 2000 decision saw an influx of inner-city convenience store liquor retailers, some of which operated 24 hours, and was a "genesis" for much of the current alcohol-abuse debate.

Police, councils and anti-alcohol campaigners have criticised the easy access to around-the-clock alcohol from conveience stores, 25 sales were made to volunteers aged 10 to 17.

Some convenience stores tested for age vilgilance were "just horrendous".

"The only criteria for some of those premises is that the person be breathing," he said.

The Victoria Night n' Day decision will likely be appealed.

However, if successful, the decision will set a precedent that will affect stores across New Zealand.

The authority has already stopped issuing liquor licences to new convenience stores.

The authority under new chairman District Court Judge Bill Unwin, said in the Victoria Night n' Day decision, there has been "an unfortunate series of events" that brought the authority to the conclusion that "the way in which certain premises have been licensed must stop".

"The reality is that a large number of convenience stores have joined the bandwagon and obtained licences which should not have been granted."

The authority said the Victoria St store was not a grocery whose principal business was the sale of "main-order household-foodstuff requirements".

A sales breakdown, provided by the company, showed it sold 46.67 percent main-order food lines.

However, the authority pointed out that 18 per cent was confectionery and a further 18 per cent drinks.

Alcohol was 10.39 per cent of the total business, while tobacco was 15.93 per cent.

The authority said the company was not entitled to have its licence renewed but, given the consequences of the decision, it would be granted until its March 5 renewal date.

Counsel for Night 'n' Day Trevor Shiels said an appeal was likely.  "It's unfortunate that the approach seems to have changed."

Shiels said the test of whether a business was a grocery store or not was not clear.

Night 'n' Day Foodstores franchise director Andrew Lane said the company classed itself as an inner-city grocery store.

Lane said the idea that after-midnight sales led to drunken violence was "rubbish". Drunk people trying to buy alcohol were rare, and operators were trained to identify them and refuse sales.

(Source: Ian Steward - The Press, 3/12/2009, www.stuff.co.nz)