Private retail sales of ready-to-drink cocktails to go, extended happy hours and more
Harrisburg – Following Governor Shapiro's signing of House Bill 829 and Senate Bill 688 into law as Acts 57 and 86 of 2024, the Pennsylvania Liquor Control Board (PLCB) released summaries of each new law and pledged its commitment to successful implementation of liquor reforms including expansion of the network of retailers allowed to sell ready-to-drink cocktails (RTDC) to go to include restaurants, hotels, supermarkets, convenience stores, beer distributors, and others.
The Summary of Act 86 details all the privileges and obligations of the new RTDC permit, which will authorize permittees to sell spirits-based RTDC ranging from 0.5% alcohol beverage by volume (ABV) to 12.5% ABV in original containers up to 16 ounces for off-premises consumption (to go).
RTDC permits will be available to retail liquor licensees eligible for wine expanded permits (restaurants, hotels, supermarkets, convenience stores, etc.) and to distributors and importing distributors of brewed and malt beverages, all of which must be certified in the Responsible Alcohol Management Program.
Highlights of the new law include the following:
- Retail RTDC permit holders (not distributors/importing distributors) will be able to sell RTDC to go in quantities up to 192 fluid ounces per transaction, and that allowance is in addition to up to 192 fluid ounces of brewed or malt beverages and up to 3 liters of wine per transaction – all three can be maxed out in a single sale, but only to retail customers (not licensees).
- Distributors and importing distributors will be able to offer samples of RTDC and sell RTDC in any quantities to retail customers, but not to licensees. They will also remain prohibited from selling wine or other forms of spirits.
- The PLCB currently has a catalogue of more than 100 RTDCs, but RTDC permit holders are not allowed to procure RTDC through Special Order for sales for on-premises or off-premises consumption. The PLCB will also entertain permittees' requests to bring new RTDCs into the market, if suppliers are willing to make them available through regular product listing processes.
- Pennsylvania licensed manufacturers producing RTDC may sell them directly to retail customers and permit holders, in any quantities, at prices equivalent to or more than what the PLCB charges, if the PLCB carries the same or substantially similar products.
The PLCB is currently working to develop RTDC permits, applications, and regulatory processes. The agency will announce when it will begin accepting applications.
Act 86 of 2024 becomes effective Sept. 16.
The Summary of Act 57 of 2024 includes the following highlights, as well as additional detail. Act 57 becomes effective Sept. 13.
- Happy hours for qualifying retail liquor licensees are extended from a maximum of 14 hours per week to 24 hours per week.
- Quantity discounts, or case discounts are allowed as follows:
- Distributors and importing distributors can offer case discounts to licensees and retail customers.
- Limited wineries can offer case discounts only to retail (non-licensee) customers.
- The Board's authority to issue immediate operating authority for outdoor temporary extensions of premises, which was set to expire Dec. 31, is now permanent. Outdoor temporary extensions can be renewed at the end of validation and renewal periods, with submission of an application and filing fee.
- Pennsylvania breweries, limited distilleries and distilleries can now stay open until 2 a.m. on New Year's Day. Previously they were required to close at 11 p.m. or midnight, depending on the day of the week. They can also pay $50 to stay open until 2 a.m. one additional day each year, with advance notice to police.
- Clubs now have their licenses treated like other licenses (restaurant, hotel, distributor, etc.) for purposes of safekeeping, and they can use an extended hours food permit as often as they want.
- The PLCB can offer additional financial incentive for large-volume licensees selling wine and RTDCs to obtain product from the PLCB by dropping trailers at the PLCB's distribution centers for fulfillment, rather than requiring PLCB delivery. Trailer-drop fulfillment to licensees is currently free, and trailer-drop credits of 75 cents per case or $1.25 per case, depending on order build, will go into effect Sept. 16.
The PLCB regulates the distribution of beverage alcohol in Pennsylvania, operates about 600 wine and spirits stores statewide, and licenses 20,000 alcohol producers, retailers, and handlers. The PLCB also works to reduce and prevent dangerous and underage drinking through partnerships with schools, community groups, and licensees. Taxes and store profits – totaling nearly $20.3 billion since the agency's inception – are returned to Pennsylvania's General Fund, which finances Pennsylvania's schools, health and human services programs, law enforcement, and public safety initiatives, among other important public services. The PLCB also provides financial support for the Pennsylvania State Police Bureau of Liquor Control Enforcement, the Department of Drug and Alcohol Programs, other state agencies, and local municipalities across the state. For more information about the PLCB, visit lcb.pa.gov.
MEDIA CONTACT: Shawn M. Kelly, 717.303.8522
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