Two women ended up in hospital with burns after being served drinks with "contaminated salt" coating the rim of the glass at the Fraternity Club in Fairy Meadow.
A police spokesperson said the incident was "accidental", while the NSW Food Authority is investigating the matter.
A source told the Mercury that two women were at the club on Thursday, October 18, and ordered margaritas at the bar.
Tasting what a Fraternity spokesperson later said was "contaminated salt" on the rim of the glasses, one woman spat it out immediately.
The other swallowed some of the contaminated salt and has reportedly been left with internal burns.
A member of the public called an ambulance and the pair were taken to the Wollongong Hospital emergency department.
The spokesperson for the Fraternity Club confirmed the incident took place.
"We can confirm that last Thursday evening two women sustained burns after drinking margaritas salted with contaminated salt," the spokesperson said."
"The club has been working with police who have informed us that the matter has been ruled an 'accidental drink contamination'.
"We take this incident very seriously and have engaged an independent work, health and safety organisation to review our processes and fine-tune staff training, to ensure it is not repeated.
"We deeply regret this occurred and have attempted to offer our support and assistance to the women.
"We have since been informed that, thankfully, they are expected to make a full recovery."
Police and the NSW Food Authority were in the club on Friday investigating the incident.
A police spokesperson had confirmed the incident was "accidental".
"Following enquiries it appears to have been deemed accidental, with no criminal offences identified," the spokesperson said.
A NSW Food Authority spokesperson said its investigation was continuing.
"An incident is under investigation by authorised officers from the NSW Food Authority, following a report that two patrons were taken to hospital after consuming drinks at a licensed venue in Fairy Meadow on Thursday evening," the spokesperson said.
"The NSW Food Authority was notified of the incident on October 20 and immediately attended the venue to investigate the circumstances surrounding the incident, where they were assisted by NSW Police. The investigation is ongoing."
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