North Carolina and Pennsylvania pass RTD-friendly bills

Last week, the North Carolina Senate passed SB 527, which contains a number of pro-consumer measures, including lowering the tax rate on ready-to-drink (RTD) cocktails, allowing to-go cocktails and mixed drink delivery, and allowing holiday sales.

The bill now heads to Governor Roy Cooper for his signature.

“North Carolina spirits consumers are one step closer to enjoying greater convenience with the passage of SB 527,” Andy Deloney, senior vice president and chief public policy officer for the Distilled Spirits Council of the United States, said in a news release. “Lowering the tax rate for ready-to-drink spirits cocktails, allowing to-go cocktails and enabling holiday sales are all measures that will benefit local hospitality businesses and the consumers they serve.”

“Many states have already modernized their markets, and it’s time for North Carolinians and the tourists who visit them to enjoy them. We urge Governor Cooper to sign this consumer- and business-friendly measure into law.”

Even though many ready-to-drink alcoholic beverages have the same or lower alcohol by volume (ABV) than their beer and wine-based counterparts, they are currently taxed at a much higher rate. SB 527 defines a “pre-mixed cocktail” and sets a maximum ABV of 13%. It exempts these low-ABV products from the state’s mixed beverage tax of $20 per gallon paid by holders of a “mixed beverage permit” for on-premise consumption.

SB 527 authorizes cocktails to-go and delivery by mixed beverage permit holders or delivery service permit holders. Cocktails to-go orders must be placed with the purchase of food and placed in tamper-proof containers. Current law does not authorize cocktails to-go, as the previous, temporary cocktails to-go measure is set to expire in June 2021.

Since the start of the pandemic, 28 states and the District of Columbia have enacted laws to permanently allow to-go cocktails.

SB 527 authorizes local ABC stores to sell on New Year’s Day, July 4th, and Labor Day.

Read more: Distilled Spirits Council Honors Industry Leaders

RTDs approved for sale alongside wine and beer in Pennsylvania

The Pennsylvania House Alcoholic Beverage Control Committee has approved Senate Bill 688, a bill to allow the sale of low-alcohol-by-volume (ABV) spirits ready-to-drink (RTD) cocktails at certain retail outlets that already sell beer and wine of the same or lower alcohol content. The bill now heads to the full House for consideration.

“Allowing adult consumers to purchase their favorite ready-to-drink alcoholic beverages in the same places where they already purchase beer and wine just makes sense,” Deloney said. “These products contain the same amount of alcohol as products already sold in supermarkets and convenience stores, so consumers should not have to make an extra trip to purchase them.. “We urge the House to pass SB 688 in support of Pennsylvania consumers and businesses.”

A survey showed that consumers support greater access to these products, including in grocery and convenience stores, and 86% agree that ready-to-drink alcoholic beverages should be sold in the same places where beer and wine can be purchased. Despite having exactly the same alcohol content as beer- and wine-based R&D alcoholic beverages, R&D alcoholic beverages are at a disadvantage of more than 10,000 stores in the state.

Pennsylvania is one of many states taking a closer look at this issue to ensure that producers of ready-to-drink alcoholic beverages are treated fairly, recognizing that treating beverages differently based on the myth that some alcoholic drinks are “softer” than others sends a dangerous message to consumers.