Liquor (Photo/Supplied)
Liquor importer and distributor fined $244,000 for trying to sell product without legitimate bottles labels
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 in place to protect consumers.
Importer Golden Grand Trading Limited and distributor Mayajaal Holdings Limited were sentenced in the Auckland District
Court in April following a successful prosecution by New Zealand Food Safety (NZFS). Golden Grand Trading pleaded guilty
to three charges under the Food Act 2014, including being an unregistered importer, and Mayajaal Holdings pleaded guilty
to one charge under the Food Act.
The Judge’s reserved decision has been released. In the decision by Judge RJ Collins, Golden Grand Trading Limited was
fined $142,000 and Mayajaal Holdings Limited was fined $102,000. Both companies were ordered to share costs of $36,000
for disposal of the alcohol.
The companies were investigated after allegations they were supplying illegal liquor to retailers between 2016 and 2019.
The offending included both companies recklessly possessing for sale or selling non-compliant alcohol involving some
5534 bottles of imported liquor that had either no lot codes or were stickered with a lot code that was not genuine. The
liquor had an estimated retail value of $292,526. All liquor was seized by compliance investigators from their
distribution warehouse. Another 30 bottles were recalled, 7 were seized from a liquor store and 2 other bottles from an
online purchase were also seized.
NZFS Deputy Director-General Vincent Arbuckle said lot codes were unique and laser-etched into the glass of the bottle
or printed on the label. They ensure traceability in the event of a product recall and assure consumers that the product
contents are genuine and have not been changed in any way.
“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.
“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.”
He says the companies tried to avoid being compliant with the rules to save money.
“Our investigators found the importers bought thousands of bottles of liquor with lot codes removed and that it was
cheaper – by nearly 7.5%,” Mr Arbuckle said.
An aggravating feature of the offending was that Golden Grand Trading had in 2012 received a warning about importing
liquor with non-compliant labelling following an investigation. It resulted in a large amount of alcohol being
destroyed. Letters were also sent to Mayajaal Holdings about requirements under the Food Act.
As the liquor was non-compliant, an application to the court will be made to have the liquor destroyed at a specialised
waste disposal plant.
Today’s sentence is part of a wider Ministry for Primary Industries compliance investigation called “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,” says Mr Arbuckle.
“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.
Food importers with any questions can contact New Zealand Food Safety on 0800 00 83 33 or info@mpi.govt.nz.