Ready-to-drink cocktails will be cheaper, easier to buy with bill passed by VT Legislature

Brent Hallenbeck, Burlington Free Press
·2 min read
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The Vermont Legislature last week passed a bill that would make it easier for consumers to buy ready-to-drink cocktails in the state.

The idea of pre-made cocktails to-go became entrenched soon after the COVID-19 pandemic began in March 2020. Bars and restaurants were forced to shut their indoor spaces for weeks, making to-go drinks an option for them to bring in money at a time when business was severely curtailed.

As passed by the Legislature, the bill would reduce the tax on spirits-based ready-to-drink products to $1.10 per gallon served. According to the Distilled Spirits Council of the United States, that tax is currently an estimated $7.68 a gallon, which the council calculates by combining Vermont's liquor markup compared to other states plus a 5% tax.

Justin Dain, chef/owner at Oakes & Evelyn, displays one of the Montpelier restaurant's cocktails to-go Feb. 18, 2021.
Justin Dain, chef/owner at Oakes & Evelyn, displays one of the Montpelier restaurant's cocktails to-go Feb. 18, 2021.

The distillers calculate that Vermont's liquor markups as compared to other states, plus a 5% tax, equate a current tax of about $7.68 per gallon.

The bill would also expand access to those products by allowing more than 1,000 private beer-and-wine retailers to sell those products, according to the council. Licenses to sell the products would be contingent upon town or city approval, according to the bill.

The council argues the bill will support Vermont distillers, lower costs for consumers and bring in revenue for the state.

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The bill, passed May 12, has been sent to Gov. Phil Scott to sign. If signed, the law would take effect July 1.

The bill specifies that ready-to-drink spirits beverages contain between 1-12% alcohol-by-volume content (ABV) and cannot be packaged in containers of more than 24 fluid ounces. According to the Distilled Spirits Council, 24 states already have lower tax rates for spirits-based products with lower ABV content.

Contact Brent Hallenbeck at bhallenbeck@freepressmedia.com. Follow Brent on Twitter at www.twitter.com/BrentHallenbeck.

This article originally appeared on Burlington Free Press: Vermont Legislature makes to-go cocktails cheaper with new bill