Residents in the South Wales town of Trehafod appealed to the council after a six-metre long Booze Busters sign was erected on the side of a store bought by the company.
Local councillor Christina Leyshon said: "To have a big illuminated sign saying Booze Busters is irresponsible. I know that it's only a sign, but we need to face the fact we have to stop alcohol getting to youngsters."
A letter from the council to local residents said that the "disrespectful" sign "fuelled the drink culture that blights many communities" and undermined the town's tourist strategy. It was also described as a traffic hazard.
The council has since ordered the sign to be reduced to 2.5 metres in length.
Last month residents and historians in the North Somerset town of Portishead campaigned for the removal of a large Booze Busters sign.