It has now become possible to operate a "fully fledged" liquor store from the comfort of your home, provided the requirements of relevant liquor and municipal planning laws are met.
Digital marketplaces for liquor have enabled new businesses to access a significantly larger customer base than possible with a physical store's geographical limitations.
The low costs associated with this model further serve as an excellent catalyst for opening the liquor industry to new entrants, aligning with the national Liquor Policy's objectives of transforming the industry.
To sell liquor to the public through an online platform, a business will require an off-consumption liquor license from the relevant provincial liquor authority. There is no specific “online” liquor license to conduct the activities as described.
In its simplest form, the online liquor sales model envisages that no liquor will be delivered to, dispatched from or stored at the premises which will be licensed for the sale of liquor for consumption off the premises.
In other words, no movement of liquor actually occurs to or from the licensed premises.
The marketing of products, communication with clients, processing of payments and delivery arrangements all occur through the online platform. This means that only a small office is needed as the licensed premises for conducting the administration relating to those actions.
However, it is important to note that a liquor license can only be granted provided the property on which the proposed licensed premises (the office) is situated has the appropriate zoning rights from the relevant municipality to conduct the administration relating to online liquor sales.
In this regard, it is always advisable to seek necessary advice from a town planner before incurring costs to obtain a liquor license.
The City of Cape Town has taken valuable steps towards recognising the positive impact of enabling technology, like digital marketplaces.
In 2016, they amended the City of Cape Town Development Management Scheme to include a definition of "home occupation" that incorporates the sale of alcoholic beverages via the Internet or any other electronic means.
This amendment allows residents of the City of Cape Town to conduct the administration related to online liquor sales from an office in their home.
It serves as an excellent example of authorities moving in the right direction by acknowledging the potential of technology to foster inclusivity, accessibility, and economic opportunities for individuals, ultimately expanding economic participation and empowering a broader range of people to engage in economic activities.
Contact us for all your liquor license requirements and liquor-related queries to get your business up and running.
Since 1998, Danie Cronjé has been involved in advising key role players in the wine industry on all liquor-related laws. Today, in the heart of the Winelands, Danie continues to streamline all the processes for his clients' relating to liquor licensing and the regulation thereof.