June 24, 2024

The state House and Senate have returned to Harrisburg for a full week of scheduled legislative session days as the pressure to finalize the budget intensifies. With that, privatizing ready-to-drink (RTD) spirits-based beverages has garnered renewed momentum.

Senate Bill 688 was introduced last year and would privatize RTDs by expanding where they can be sold. As the bill is currently written, the RTDs in play are spirits-based with no more than 4.5% alcohol by volume content. In addition to the FW&GS outlets, SB 688 expands their availability to also include bars, restaurants, supermarkets, convenience stores, and beer distributors making this the first step in privatizing the sale of spirits in Pennsylvania.

Earlier this month, SB 688 passed the full Senate by a vote of 26 YES to 24 NO and was referred to the House Liquor Control Committee (HLCC) which has scheduled a voting meeting for tomorrow, Tuesday, June 25th. If SB 688 is voted favorably out of the HLCC, it becomes eligible for a full vote by the state House. At this meeting, the HLCC is expected to amend the current language in SB 688. Details of what the final version could look like have not been revealed.

ISSU has always opposed the privatization of RTDs. Limiting the sale of these beverages to the state-run retail outlets demonstrates sound alcohol policy while at the same time the state collects the revenue generated by their sale through the agency's own brick-and-mortar stores without further privatization.

TALKING POINTS

Alcohol is not like other commodities and its sale presents unique challenges. Responsible alcohol policy is not selling alcohol wherever, whenever, to whomever. A 2023 national study conducted across the U.S. by the Center for Alcohol Policy found the following:

 82% of those surveyed agree alcohol is different than other commodities and should be regulated differently.

 56% of those surveyed believe increasing the number of outlets selling alcohol would lead to an increase of problems facing a community.

73% of those surveyed said lawmakers should consider protecting public health and safety when contemplating changes to alcohol regulations.

Source: National Alcohol Regulation Sentiment Survey, Center for Alcohol Policy, 2023.

Alcohol remains the overwhelming choice of use among adolescents when compared to tobacco and marijuana. According to the 2022 National Survey on Drug Use and Health, more adolescents between the ages of 12 and 20 reported using alcohol over tobacco or marijuana during the month prior to when they were surveyed.

Alcohol, Tobacco, Marijuana use among 12 to 20 year olds during the month prior:

Alcohol = 15.1%

Tobacco = 5.0%

Marijuana = 11.8%

Source: 2022 National Survey on Drug Use and Health (Tables 2.9B, 2.3B, 1.7B).

The percentages above reflect how adolescents reported their experience in 2022. The report was released November 2023 by the US Department of Health and Human Services through the Substance Abuse and Mental Health Services Administration (SAMHSA) and contains the most current results available.

According to the PLCB’s annual report for Fiscal Year 2023-2024, RTD dollar sales grew 43.3% over the previous fiscal year. (A more than 301% increase over FY 2019-2020.)

                                   Product Category by Dollar Sales: Ready-to-Drink

                                   FY 2022-2023 = $89,150,186

                                   FY 2021-2022 = $62,172,935

                                   FY 2020-2021 = $37,960,009

                                   FY 2019-2020 = $22,182,919

Source: Pennsylvania Liquor Control Board, Fiscal Year 2022-2023 Annual Report.

By the numbers, it is a detriment to the PLCB to siphon sales of one of its top selling product categories to the private sector.

Our Careers --- Preserving and limiting how and where alcoholic beverages are sold in Pennsylvania is vital to protecting our careers in management not just for the short-term but long into the future. Our jobs matter.

Defeating SB 688 requires a collective effort. There is much at stake. The constant erosion of alcohol sales currently allowed exclusively at the Commonwealth’s FW&GS retail locations will deteriorate the control system until there’s nothing left.

Call your state House member, regardless of their past support or non-support of Pennsylvania’s liquor retail system. URGE THEM TO VOTE “NO” on SB 688 should it come before them.

Encourage family, friends, neighbors, community leaders to do the same. Legislators want to hear from constituents. It’s the most important input they consider when casting votes. CALL TODAY! Significant policy changes should not happen quietly without input from the public.

Click on the link below to directly email your local legislators

If you know a fellow ISSU-represented LSAM or GM1A, 1B, or 2A who is not receiving our email updates and alerts, encourage them to email us at issu@comcast.net. Due to time limitations, information may only be provided via email.

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