Dive Brief:
- Pennsylvania’s legislature has passed an amendment to the state’s liquor code that allows for the sale of ready-to-drink cocktails in convenience stores, grocery stores and other retail locations.
- Previously, RTD cocktails could only be sold in state-run liquor stores because the base alcohol is liquor, according to a July 11 announcement from the Pennsylvania Food Merchants Association. If this bill is signed into law, it would allow businesses to obtain ready-to-drink cocktail permits.
- With RTD beverages a popular and growing alcohol category, the updated regulations could give c-stores a new avenue to attract customers .
Dive Insight:
Spirits-based alcohol sales are booming — up over 11% in the month ended June 29, as compared to flavored malt beverages, which grew 3% over the same time, and beer, which saw sales shrink, according to Goldman Sachs data. RTD spirits and liquor were also the only alcoholic category retailers felt upbeat about in an April Goldman Sachs survey that drew responses from about 35,000 convenience stores.
The expansion of RTD cocktail access is widely popular, with the vast majority of even non-drinkers saying the beverages should be available where other canned alcohols are, according to a 2022 study from the Distilled Spirits Council of the United States.
Canned cocktails can be purchased to-go in more than half the country, according to InfoLawGroup, although some of states, like Virginia, restrict sales to places like restaurants, bars and wineries or distilleries. And Pennsylvania isn’t the only state looking to broaden access to these popular alcoholic drinks. Laws have been introduced in major c-store states like Texas and California to boost access.
"[Senate Bill 688] offers consumers greater convenience and choice while supporting local businesses,” said Alex Baloga, president and CEO of PFMA, in the announcement. “We eagerly await the governor's signature to bring this exciting change to our state. This bill not only meets the evolving preferences of our customers but also provides a boost to our economy by opening new market opportunities for retailers."
