- Buzz Club founders Edward Eaton and Wilbur Morrison to have their managers licences suspended for 28 days
- The off-licence held by the company will also be suspended for three weeks from 2 December
- Both founders have accepted their supply of this quantity of alcoholic lemonade for promotional purposes was irresponsible
A company which supplied 280 bottles of its BEE Alcoholic Lemonade to a Dunedin flat for Orientation Week, will have its off-licence suspended for three weeks.
The Buzz Club gave the 1.25 litre bottles to Castle Street residents in February 2024. The supply equated to 1300 standard drinks and was part of a promotion.
Founders Edward Eaton and Wilbur Morrison appeared before the Alcohol Regulatory and Licensing Authority (ARLA) for alleged breaches of the Sales and Supply of Alcohol Act.
ARLA found the that "the supply of this quantity of alcohol in these circumstances was grossly irresponsible and, without question, designed to promote a reasonably new product amongst a targeted market of relatively young people.
"It has been accepted by all three respondents that the supply of this quantity of alcoholic lemonade for promotional purposes was irresponsible and that it would accordingly amount to an offence," ARLA said.
ARLA ordered the off-licence held by Buzz Club to be suspended for three weeks from 2 December and both founders' manager's certificates to also be suspended for a period of 28 days from the same date.
The authority noted that the 25-year-olds had demonstrated an entrepreneurial spirit by launching this business, originally for the production and distribution of mead.
"While they both hold excellent tertiary qualifications, it can be accepted that they are both relatively inexperienced in the business world and that The Buzz Club was their first venture into the production, supply and sale of alcoholic drinks," the ruling stated.
Eaton and Morrison accepted they made a serious mistake and that they had learned from it.
ARLA said it has since brought on an independent director who was formerly a marketing manager for one of the largest liquor companies in New Zealand.
It has also implemented an internal policy whereby any sponsorship or promotional opportunities are first referred to that independent director for approval to ensure that no further mistakes are made.