Canned cocktails are coming to restaurants, grocery stores, and gas stations near you

With the Pa. Senate’s approval, a bill that expands the availability of canned cocktail drinks beyond state-run Fine Wine & Good Spirits stores, now heads to the governor’s desk. Under the legislation, Pennsylvanians will be able to purchase ready-to-drink cocktails at their local restaurants, grocery chains, and beer stores.

The legislation amends the state liquor code to allow ready-to-drink beverages , also known as “canned cocktails,” to be sold in nearly 13,000 retail locations with liquor licenses, provided they obtain an additional license for RTDs. The Senate bill passed July 11 by 32-17. A spokesperson for Shapiro’s office confirmed to The Inquirer that the governor plans to sign the bill into law.

“Here’s a reform that folks will like. Thanks to this budget, you’ll be able to get your High Noons and your Statesides — made right here in Pennsylvania — at your local grocery store or your local gas station. That is real freedom,” Shapiro said July 11, after signing a $48 billion state budget for the 2024-25 fiscal year.

The law stipulates that canned cocktails must be under 12.5% ABV, cannot be sold after 11 p.m., and their sale is limited to 192 fluid ounces, or about 16 cans, per transaction for off-site consumption.

State Sen. Mike Regan, the prime sponsor of the canned cocktail bill, looks forward to seeing Pennsylvanians have more options to buy these spirit-based drinks in-state.

“The passage of this bill is monumental, for the first time in 91 years, Pennsylvania consumers will be able to buy liquor-based alcohol to-go at their local grocery store, convenience store, beer distributor, or restaurant. For years, Pennsylvanians have been traveling across state lines to buy RTDs and this will certainly help stop some of the border bleed,” Regan said.

Canned cocktails are the fastest-growing category of spirits in the U.S., with sales increasing by more than 25% year-over-year to $2.8 billion in revenue in 2023, according to the Distilled Spirits Council of the United States. The council’s surveys indicate that adults increasingly prefer spirit-based RTDs over malt- and wine-based options, said Ainsley Giglierano, Distilled Spirits Council vice president of public affairs and state policy.

“It’s a great move to increase consumer convenience and choice. This bill would allow ready-to-drink cocktails in an additional 13,000 private outlets, on top of the 600 state stores,” Giglierano said. “That increase in adult consumer access is really great for Pennsylvania consumers. They seek out these products because of their fresh ingredients and real spirits in these ready-to-drink cocktails.”

Alex Baloga, president of the Pennsylvania Food Merchants Association, which represents local grocery and convenience stores, said this new law is driven by consumer demand. In a recent study of more than 2,000 U.S. adults — both consumers and nonconsumers of cocktails — 86% believed spirit-based RTDs should be sold where other RTD drinks are available.

“Like when wine was put into retail stores, this is another seismic shift in the beverage landscape, bringing Pennsylvania in line with pretty much everybody else in the rest of the country,” Baloga said. “This is a step in the right direction. This makes consumers’ lives easier. They can go to a grocery store, get what they need, and avoid making a second or third trip.”

However, the fees for the RTD liquor license present a hurdle for some smaller and more rural retail locations, said Chuck Moran, president of the Pennsylvania Licensed Beverage and Tavern Association, which represents smaller, family-owned establishments.

“I heard from a restaurant owner who owns several restaurants in the Philadelphia area, and he said the $2,500 fee and yearly 2% fee on total sales of these products bought from the Pennsylvania Liquor Control Board doesn’t benefit the smaller businesses and bars,” Moran said. “It’s nice to have this option, but we just don’t think you’re going to see the amount of sales coming out of restaurants that you’ll see from beer distributors and grocery stores.”

The expanded canned cocktail sales will go into effect 60 days from when Shapiro signs the bill into law.