Pa. Senate bill would relax purchasing law on ready-to-drink cocktails

May 10—HARRISBURG — State lawmakers remain divided about whether to allow sales of ready-to-drink cocktails — think canned whisky sodas and the like — beyond Pennsylvania's system of Fine Wine and Good Spirits stores.

The Republican majority on the Senate Law and Justice Committee carried a 6-5 party-line vote Wednesday advancing Senate Bill 688 for further consideration in the upper chamber.

The bill would permit sales of the spirits-based, pre-mixed, pre-packaged cocktails at licensed establishments like bars and restaurants, distributors and grocery stores for off-site consumption.

Such licensed venues are permitted to sell malt- and wine-based ready-to-drink beverages including hard seltzers.

Under the bill introduced by Sen. Mike Regan, R-Cumberland/York, the committee's majority chair, the spirits-based drinks could be sold in containers up to 16 ounces and like beer, sales would be restricted at restaurants and bars at up to 192 ounces, or the equivalent of two 6-packs, for each purchase.

The drinks themselves would be limited to 12.5% alcohol by volume, which is the highest amount allowed outside the state system.

Volume and alcohol limits wouldn't apply to the state stores.

Pennsylvania Capital-Star reports that Regan's brother-in-law is the president of a Harrisburg-area beer distributor.

Regan said the change would generate between $150 million and $200 million in tax revenue for Pennsylvania. However, Sen. James Brewster, D-Allegheny, said the state system would lose profits from retail sales revenue.

Sen. Christine Tartaglione, D-Philadelphia, said critiques noted by Regan — that the state system didn't have the shelf space and refrigeration to support expansive ready-to-drink products — have been improved upon since 2021 when debate on the topic last heightened.

Tartaglione and Regan agreed that fresh discussions are needed with the state Liquor Control Board, to which Sen. Jimmy Dillon, D-Philadelphia, also agreed.

"I think we could all agree that we would like to see a greater retail access for these products but we must give careful consideration to the LCB employees and families and sustaining jobs of that nature," Dillon said.

A complicated attempt to marry the legality of ready-to-go beverages and cocktails-to-go in the 2021-22 session fizzled — the latter being alcoholic drinks mixed and packaged on-site.

Opponents included former Gov. Tom Wolf along with the International United Food & Commercial Workers Local 1776 which boasts 3,500 state liquor store workers as members. That same union also represents workers in other sectors that might benefit from the bill including, as Regan pointed out, at grocery stores.

Trade associations including the Pennsylvania Restaurant & Lodging Association and the Pennsylvania Chamber are supporters. Six such associations founded the collaborative Coalition for Convenient Sales in support of the measure.

Regan noted industry market data that found ready-to-drink cocktails are the fastest-growing sector within the alcoholic beverage industry.

The Distilled Spirits Council of the United States, which supports the measure, found that despite the growing popularity among consumers, 62% of craft spirits distillers aren't producing the product because of market barriers.