despite losing a battle in the Island's highest court.

Giant Foods manager Mr. George Whitecross said he was planning to re-apply for a licence as soon as possible.

But church members, teachers and parents in Warwick were celebrating after the Court of Appeal threw out the store's plea to be allowed to sell alcohol.

The store's application for a licence was refused by the Liquor Licensing Authority in December last year, after objectors said young people would find it easier to get alcohol.

The Supreme Court upheld the authority's decision, and yesterday the three Appeal Court judges also said they could find no grounds for overturning the ruling.

Mr. Kim White, lawyer for the objectors, said: "The decision is obviously very pleasing for the majority of the community who don't want liquor sold at this location.

"We see that this decision supports those in the community who wish to see the sale of alcohol strictly controlled.'' And Mr. Bruce Sharpe, chairman of local community group WARCAG, added: "It's a tremendous accomplishment. We're very pleased and there are many others that equally pleased.'' Objectors to the licence said increased availability of alcohol could lead to more teen drinkers, attract undesirables to the area, and cause litter.

But Mr. Whitecross pointed to increased demand from customers, who had signed a petition supporting the store's application. He promised tight control of sales.

All his competitors had licences, he argued.

The Appeal Court announced: "Because this is an application for a new licence, it is unavoidable that some of the objections will be speculative and will guess at the undesirable results which may follow from the grant of a licence.'' But the Liquor Licensing Authority had local representatives and should take into account local views, the court said.

"It knows better than this court what local feelings are, and its decisions should not be interfered with by us unless they are unreasonable.''