Robert Joseph Stewart, 19, was convicted of demanding property with menace with intent to steal among a host of other charges in Nowra Local Court.

Court papers said Stewart, another male and two females, arrived at the Australian Hotel bottle shop in a car around 9.45pm on October 26 last year.

Police said as the two women looked around the store to purchase alcohol, Stewart entered the business with green fabric covering his face. His right arm and hand was outstretched covered by a towel.

The male shop attendant believed the man could have been armed with a knife or gun under the towel and that he was attempting to rob the bottle shop.

It was alleged Stewart said "You gunna give me two bottles of Johnnie Walker Red Label".

The startled staff member told the would be thief he was "kidding" and he "wouldn't be handing anything over".

The pair stood facing each other with Stewart telling the man to "come on, hurry up".

Police said at that stage one of the women said "RJ what are you doing?' at which the male ran from the shop.

The attendant closed the shop and alerted his duty manager of the incident, who contacted police.

CCTV footage clearly showed the offender, with police later locating the vehicle in McGrath Avenue, Nowra near Harry Sawkins Park.

Police said Stewart was found in the rear of the car in the same clothes as those the male on the CCTV footage was wearing.

Stewart was also convicted on charges of never being licensed to drive a vehicle on the road and dishonestly obtaining property by deception

A charge of robbery had earlier been withdrawn.

Nowra Magistrate Gabriel Fleming placed Stewart on a 12-month intensive correction order and 12-month community correction order which can both be served within the community.

He has been ordered to attend mental health assessments as directed, and undertake drug and alcohol treatment at the Oolong House rehabilitation program and take medication as prescribed.