Pennsylvania Lawmakers Expand Access to Ready-to-Drink (RTD) Cocktails
Across the United States, the Ready-to-drink (RTD) cocktail industry has exploded into a multitude of canned cocktail options that satisfy almost every consumer preference. According to some reports, RTD sales are expected to eclipse $250 Million in 2024 and more than double by 2030.[1] Most Pennsylvanians are familiar with the popular brands like High Noon, Stateside, and Jack Daniels, but there are so many more brands that exist in the market that are relatively unknown to us in Pennsylvania.
Despite high consumer demand for RTD cocktails, due to distilled liquor being a component of canned cocktails, Pennsylvania restricts the availability of and access to RTD cocktails because they must be purchased from the PLCB-operated state stores. While state stores have certainly come a long way in the past few years in terms of increasing the brands and varieties they carry, given the limited shelf space in those stores, there is only so much that can be offered. However, that is likely to change in the coming months.
Pennsylvania may have finally joined the party when it comes to the availability and popularity of RTD cocktails within the industry. Beginning on September 15, 2024, Pennsylvania will allow RTD cocktails to be sold in beer distributors, grocery stores, and convenience stores that are licensed to sell alcohol, provided they obtain a RTD permit. As a result, it is likely that Pennsylvania will begin to have access to a larger selection of RTD cocktails.
To be eligible for the RTD permit, the licensee’s location must be RAMP certified. That process takes time, so licensees are advised to start working on that certification now in advance of the permits becoming available. The PLCB began accepting permit applications on August 28th.
According to the PLCB, they anticipate that allowing the applicable licensed establishments to sell RTD cocktails will generate $137 Million in tax revenue over the next five years.[2] This is a significant boost to both the Commonwealth and its consumers.
Pennsylvania lawmakers are listening to consumers and liquor licensees and are beginning to take the steps necessary to move closer to matching the availability and selection of alcoholic beverages accessible in the surrounding states.
If you are a liquor licensee interested in learning whether your license qualifies for a RTD permit or need assistance in applying for the permit, please contact our office.