An Auckland Liquor importer and distributor have been fined a combined $244,000 for trying to sell thousands of bottles of illegal alcohol.
Importer Golden Grand Trading Limited and distributor Mayajaal Holdings Limited were both sentenced at the Auckland District Court in April. Earlier, Golden Grand had pleaded guilty to three charges under the Food Act, while Mayajaal pleaded guilty to one charge.
The sentencing and fines followed an investigation by the Ministry of Primary Industries (MPI) that probed allegations the companies had been 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,” MPI said.
MPI said the liquor had an estimated retail value of $292,526.
All bottles were seized by investigators from the distribution warehouse, with 30 bottles recalled and seven seized from a store. Another two that had been bought online were also seized.
NZ Food Safety deputy director general Vincent Arbuckle said lot codes were used to ensure traceability in case of a recall and assure customers products were genuine – which is why the offence was taken “seriously”.
He said the companies tried to avoid compliance so they could 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%,” Arbuckle said.
Golden Grand was fined $142,000, and Mayajaal Holdings Limited was fined $102,000. Both companies were ordered to share costs of $36,000 to destroy the alcohol.
“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.
He said the liquor was genuine in this case, but consumers “deserve to know that the product they are consuming is safe and suitable”.
“Also, if a recall were 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.”
MPI said Golden Grand had previously received a warning about non-compliant labels following an investigation in 2012. A large amount of alcohol was destroyed following that investigation, and Mayajaal Holdings was also sent letters about its 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.”
The investigation was part of a wider effort by MPI dubbed “Operation Spirit”.
In 2022, another Auckland importer and two managers were fined for similar offences.
“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,” Arbuckle said.
“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.”
