ACT 86 Update: What You Need to Know About Ready-to-Drink Cocktails
The recent passage of Act 86 has introduced significant changes in Pennsylvania’s liquor laws, specifically concerning the sale of ready-to-drink (RTD) cocktails. After attending a PLCB seminar, we’ve received clarification on information that will help you navigate this new landscape. Here’s a quick rundown of what you need to know.
If you’re looking to sell RTD cocktails, the application process is now open on the PLCB website. However, even if you apply now, approvals won’t be issued until September 16th. With the anticipation of hundreds to thousands of applications, it’s wise to get a head start. Remember, the initial permit fee is $2,500, with renewals costing 2% of your canned cocktail sales. Additionally, you must be RAMP (Responsible Alcohol Management Program) certified to qualify.
Sales Restrictions for Distributors: Distributors holding the RTD permit can only sell these products to non-licensed individuals. This means you won’t be able to distribute RTD cocktails to restaurants or bars. This limitation is important for distributors to understand when obtaining the RTD permit.
Uniform Discount Rates: All retail and wholesale licensees will receive the same discount of 10% from state stores.
Opportunity for Restaurants: Now this is just an idea, and we recommend you do your research, but there’s an interesting opportunity for restaurant owners with liquor licenses. If you also establish a limited distillery, you can produce and sell your own canned cocktails directly. These drinks must be pre-made and pre-packaged on-site at your premises before being sold. This setup allows you to capitalize on the RTD trend, but it would require strategic investment in both a distillery and the necessary permits.
For more information or assistance with your application, don’t hesitate to reach out. Our team is here to help guide you through the process and ensure you’re ready to take advantage of this new market opportunity.
You can learn more by going to the PLCB website and reading Act 86 of 2024. As a reminder, we are not attorney’s so this blog post, or our Youtube video is for informational purposes only.
