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The failure to modernize the Liquor Code will only continue to hurt Pennsylvania and thwart economic opportunities in a commonwealth rich with the tradition of producing craft alcoholic beverages.
The Pennsylvania Liquor Code has been the subject of much debate over decades from the extensive powers of the Pennsylvania Liquor Control Board to the myriad of odd rules and restrictions contained within the Liquor Code. While certain consumer advancements have been made in the last couple of years, the Pennsylvania Legislature has yet to comprehensively address the changing alcohol manufacturing landscape. As a result, the commonwealth is missing out on tax revenues and economic development opportunities in the alcohol manufacturing industry.
Generally, there are three categories of alcohol which are recognized: malt beverage, wine and distilled spirits. Different tax and distribution rules apply to each category. Over the years, the Pennsylvania Legislature has expanded the traditional definition of malt beverage (beer) to include cider, fermented fruit beverages, and mead in order to liberalize the distribution of those products for consumers and rescue them from the confines of the State Store System. This enables consumers to purchase products defined as malt beverages at traditional beer distributors as well as licensed convenience and grocery stores. Wine and distilled spirits products, even ones with the same alcohol by volume as beer, do not enjoy this access. While all wine and distilled spirits made outside of Pennsylvania must generally be passed through the State Store System, innovations in those products have drastically changed the alcohol manufacturing industry and Pennsylvania has failed to address these innovations causing significant consternation by Pennsylvania-based alcohol manufacturers. Some manufacturers have decided to invest outside of the commonwealth and others struggle with needless compliance issues associated with the current state of the Pennsylvania Liquor Code because the manufacturing rules, like the distribution and tax rules, are very different for each category.
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