An Auckland liquor importer and distributor have been fined $244,000 for attempting to sell thousands of bottles of illegal liquor and avoiding the rules to protect consumers.
Importer Golden Grand Trading Limited and distributor Mayajaal Holdings Limited were taken to court by New Zealand Food Safety (NZFS) and sentenced in April, where the former pled guilty to three charges under the Food Act 2014 - including being an unregistered importer - and the latter to one charge under the Food Act.
Judge RJ Collins' reserved decision, released on Monday, saw the importer fined $142,000 and the distributor fined $102,000; both companies were ordered to share the $36,000 cost of disposing of the alcohol at a specialised waste disposal plant.
The companies were investigated following allegations that they were supplying illegal liquor to retailers between 2016 and 2019.
Both companies were found to be in possession of or selling non-compliant alcohol, including some 5534 bottles of imported liquor that either had no lot codes or were stickered with fakes. The liquor had an estimated retail value of $292,526.
The alcohol was seized by compliance investigators from their distribution warehouse. Another 30 bottles were recalled, seven were seized from a liquor store, and two were seized from an online purchase.
Lot codes are unique and either laser-etched into the bottle or printed on the label to ensure traceability in the event of a product recall, NZFS deputy director-general Vincent Arbuckle explained. The codes also assure consumers that the product is genuine and unaltered.
"Label integrity matters and when businesses try to get around the rules, they are at best deceiving consumers, and at worst putting them at risk," Arbuckle said.
"In this case, a sample of the liquor was tested and showed that the product was genuine, but that doesn't excuse the offending. Consumers deserve to know that the product they are consuming is safe and suitable and the lot numbers help provide that assurance.
"Also, if a recall was required, the lack of a lot code would make it difficult for us to trace affected product. We take this type of offending seriously and will take legal action to ensure businesses do the right thing by consumers."
In this case, the importer and distributor attempted to avoid the rules in order to save money, he said.
"Our investigators found the importers bought thousands of bottles of liquor with lot codes removed and that it was cheaper – by nearly 7.5 percent," Arbuckle said.
Golden Grand Trading had already received a warning about importing liquor with non-compliant labelling following another investigation in 2012. A large amount of alcohol was destroyed, and letters were also sent to Mayajaal Holdings about the requirements under the Food Act.
The sentence is part of the wider Ministry for Primary Industries compliance investigation, "Operation Spirit". In 2022, another Auckland liquor importing company was fined more than $150,000 for also importing thousands of bottles of liquor that had lot codes removed or tampered with.
"Our responsibility is to consumers and their safety. People should expect to feel confident that all imported food is subject to consistently high safety standards and is fit for purpose. When we find evidence of non-compliance, such as lot codes being tampered with, we will take action, including removing products from shelves, and in serious cases, placing the offending before the courts," Arbuckle added.
"In August 2023, NZFS strengthened the requirements for all New Zealand food importers. The changes clarify the role and responsibilities of food importers when they bring food into New Zealand, to ensure that the food is safe and suitable for Kiwi consumers.
"We encourage all registered food importers to check the Ministry for Primary Industries website to make sure they are following the updated rules."
The updated requirements can be found in the Requirements for Registered Food Importers and Imported Food for Sale.
