Pennsylvania spirits price rise ‘disappointing’
The Distilled Spirits Council of the US (Discus) has expressed disappointment at a price hike for more than 3,500 brands sold by the Pennsylvania Liquor Control Board (PLCB).
The PLCB gave spirits suppliers 10 days’ notice that from 15 January, the board would be increasing the price of more than 3,500 products by 4%.
“Ten days is not nearly time for spirits producers to plan for and adjust to price increases,” said Andy Deloney, senior vice-president and head of state public policy for Discus. “This last-minute push by an outgoing administration will have implications not only for spirits producers, but for the Pennsylvania hospitality industry and its consumers.
“These decisions should be part of a larger discussion with impacted stakeholders, yet this across-the-board increase was done without any consultation or collaboration.
“We are extremely disappointed in the process by which this increase was determined and hope the PLCB will adjust future plans to include consideration of the partners most heavily impacted by their unilateral decision-making.”
In the PLCB’s annual report, the board’s total sales for fiscal 2021-22 reached US$3.02 billion – a US$109.9 million (3.8%) increase on the previous year.
It was the first time the PLCB had broken through the US$3bn mark.
Deloney added: “Pennsylvania consumers have long travelled to bordering states with more favourable markets for spirits products.
“Increasing prices only exacerbates cross-border sales and continues to drive consumers elsewhere.”
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