Premier Mark McGowan says he is "uncomfortable" with ALDI selling cheap wine after the German supermarket giants won an appeal to allow alcohol to be served at its Harrisdale store.
In 2016, the Director for Liquor Licensing rejected Aldi's bid to sell wine as cheap as $2.79 a bottle at the southern suburbs store, despite Woolworths being allowed to sell booze in the same shopping complex.
But the Liquor Commission ruled that ALDI should not have been treated as a competitor to Woolworths and granted Aldi the right to sell its low-priced wine, beer and spirits.
It makes the southern suburbs store the third approved to sell alcohol, while another four store are being considered.
"The Liquor Commission and the Director of Liquor Licensing are independent and make these decisions, but personally I'm uncomfortable with it," Mr McGowan said about ALDI's liquor license.
"The Director of Liquor Licensing takes into account all the community feedback and the like before making these decisions, but personally as I said I don't like alcohol been sold in supermarkets but it's something outside my control."
The premier said he wasn't keen on ALDI selling wine for around $2.80 a bottle.
"I'm uncomfortable with that as well," he said.
ALDI will sell 60 wines, 16 beers, 15 spirits and four cider products on the condition the drinks not be refrigerated and be sold in a separated area from the store's food.
During the appeal the Liquor Commission of WA concluded "there is nothing to suggest that the granting of the licence will result in an increase in harm and ill-health."
"The small size of the proposed premises, the nature of its operation and the limited number of products are significant factors in reaching this conclusion."
The McCusker Centre for Action on Alcohol and Youth, the Director of Public Health and the Commissioner for Police all objected to the liquor licence being granted.