STATE
Booze Business is Booming have to buy it and that applies to everybody. Attorney Ted Zeller, an attorney who reprePennsylvania is out with its annual report of sents Brewers of Pennsylvania, said creating liquor sales across the state and finished 2016- a better distribution channel for beer is always 2017 with record sales that total more than $2.5 something that is on the table. billion, a nearly four percent increase over the “One of the things that we have advocated previous report. for is a study on how the new acts have The Pennsylvania Liquor Control Board regu- impacted sales, not only at the state stores, lates alcohol at more than 600 wine and spirits but at grocery stores and how that has affected stores statewide and licenses 20,000 alcohol shelf space because now you can sell wine producers, retailers and handlers. at a grocery store,” he said. “Did that really While many argue changes to the state’s displace beer at those grocery stores and has liquor laws have been slow, the state recently it impacted sales?” eliminated the requirements that malt beverages Zeller said there’s a grant proposal in disas well as beer — must be sold in minimum cussion to study those very issues. package sizes such as six-packs and cases. “Pennsylvania has maybe the most compliThanks to Act 39, distributors can sell mixed cated liquor laws in the entire United States,” sizes, single bottles and refillable growlers. said Zeller. “There is not one state in the United Many are still arguing for the privatization States that has the volume of regulations, laws of system. and differing opinions like Pennsylvania.” “One of the biggest issues our members “We’re hoping to continue to make changes struggle with is when a restaurant places an to chip away at the system,” said Bova. order for their beer, the distributor sends a truck The report also outlined some of the state’s to the restaurant and they stock it. When they biggest sellers: Barefoot, Sutter Home, Jacneed wine or spirits, they have to get in their quin’s, Captain Morgan and Smirnoff are the top car, drive to the state store, pick up their order five at state stores. and take it to their car and then back to their business,” said Melissa Bova, vice-president of governmental affairs for the Pennsylvania Restaurant and Lodging Association. “And they are getting products that are not even priced to be competitive.” Bova said they support getting the state out of the liquor business — both retail and wholesale. “We want to be able to purchase wine and spirits like we do everything else,” she said. “We buy our food from the companies who have the best prices. We have to buy our liquor at a price the LCB dictates and their sales are going up and they are charging us more. There’s nothing we can do about it.” Pennsylvania House Speaker Rep. Mike Turzai, (R-28), last year introduced a series of bills aimed at privatizing the state’s liquor business, but so far it’s gained little traction. Some democrats argue privatization would raise prices and lower selection. Bova said in many cases, those costs are passed on directly to their customers. “The state currently has five markups on the products that we buy from the state store,” she said. “So there’s five other prices before we
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NORTHEAST PENNSYLVANIA BUSINESS JOURNAL MARCH 2018 9 TS_CNG/NPBJ/PAGES [B09] | 02/28/18
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