All Night Long Pty Ltd, the licensee of the adjacent premises known as Liquor Barons Perth, sought to overturn the May 2015 decision awarding the West Perth distillery its tavern licence.
The retailer argued before the Liquor Commission of WA that Hippocampus was "motivated by self-interest not by the public interest" and that its tavern licence would cause alcohol-related harm or ill health, as well as annoyance, disturbance or inconvenience to the local community.
Commission Member Helen Cogan this month found that any negative impacts would be minimised by licence conditions limiting the distiller to selling only its proprietary products in packaged form, as well as the prohibition of sales of liquor after 8pm.
"Longer trading hours are permitted under the type of licence for which the licensee applied. However, [Hippocampus] sought more limited hours in its application," she said.
The cellar door will now open in a fortnight, Hippocampus General Manager Jason Markwart told drinks bulletin.
"We were fought every inch of the way on our liquor licence," he said.
Hippocampus GinMarkwart said the cellar door will offer visitors an educational experience, with distillery tours as well as tastings and cocktails showcasing spirits by Hippocampus as well as other Australian distillers.
Hippocampus Gin launched
In recent weeks, the WA distiller has launched Hippocampus Gin, a traditional-style gin using locally sourced ingredients.
"With ten botanicals, including juniper, coriander, oris root, liquorice root, angelica root, almond, cassia bark, orange peel, lemon peel and cubeb pepper, we macerate the botanicals for 15 hours prior to gently and slowly distilling to create a well balanced gin with a lovely smooth mouthfeel and long finish," the company said.
Markwart told drinks bulletin the new gin contrasts in style to the London Dry Gin produced by the UK's Sipsmith Independent Distillers, which is distributed by Hippocampus' distribution arm, Hippocampus Memorable Drinks.
"We do see these two products sitting quite nicely side-by-side," he said.
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