A South Australian supermarket appears to have done the unthinkable — banning free handouts of the iconic smiley fritz to children because it is a "slipping hazard".

The Tanunda Foodland, in the world-renowned food and wine destination of the Barossa Valley, posted the sign at the store's deli counter.

"Due to slip hazards, we are no longer able to give out any smiley fritz to children," it reads.

This sign has been put up in the store to let shoppers know it will no longer hand out smiley fritz. ( Instagram: adams_wine_cider )

The ABC contacted the owners of the Tanunda Foodland — Eudunda Farmers — for more information.

Barossa winemaker James Adams posted a photo of the sign online and told the ABC he was "shocked Tanunda Foodland would succumb … to over-the-top measures".

"I would imagine 99.9 per cent of South Aussies have a childhood memory of getting fritz at a supermarket," he said.

"It's worse than the onion saga at Bunnings."

Last year, a Queensland farmer said he was injured after slipping on a piece of onion in Bunnings three years ago and had signed a non-disclosure agreement after being compensated following the accident.

Smiley fritz — the sausage made from beef, lamb and pork trimming and served with a smiling face pattern — is a South Australian tradition.

It is known as devon and polony in other Australian states.

Barossa Fine Foods owner Franz Knoll said he sympathised with the business taking measures to protect the safety of shoppers and workers.

"Everyone has to be very aware — and certainly if it is a problem, do what you need to do," he said.

"We're here to benefit our community and not create any hassles."

The South Australian Bung Fritz is a popular choice at the supermarket. ( ABC Radio Adelaide: Brett Williamson )

Mr Knoll wryly suggested the issue might have something to do with smiley fritz being manufactured in Victoria.

"If you eat it, then it's obviously not going to be anywhere other than your stomach … rather than being a slipping hazard," he said.

He said it was a practice at his business to offer handouts of a variety of goods — not just smiley fritz.

"We ask what would you like, and they can have a bit of a choice … but fritz is a staple when you go to a butcher's shop or a specialty food store."