Dear Members of the Pennsylvania Senate:
On behalf of the more than 500 craft breweries throughout the Commonwealth, I am writing to register the Brewers of Pennsylvania’s strong opposition to SB 688, a bill to expand retail access to ready-to-drink cocktails. This legislation, inaccurately promoted as a consumer convenience initiative, benefits multi-billion dollar, out of state manufacturers of spirits at the expense of the flourishing craft beer industry, which has more than 15,000 jobs in the Commonwealth. I respectfully request that you stand with your local craft brewers and oppose this ill-conceived legislation.
As you know, the Brewers of Pennsylvania (BOP) is the state trade association representing the interests of craft breweries across the state. Our industry has been growing consistently for more than a decade, in large part due to the welcoming environment the General Assembly has maintained for new entrants into the brewing industry. And brewers have lived up to our end of the bargain as well, working to make Pennsylvania second in the country in craft beer produced. This equates to more than $5 billion in annual economic activity, also second in the country. Simply put, we are the creators of good paying jobs that contribute heavily to our local and state economies, and this legislation threatens these jobs and will stifle future growth.
A look through the Pennsylvania Liquor Control Board’s (PLCB) product list of ready to drink cocktails provides an interesting look into what manufacturers will be benefitting from this expanded retail access. Specifically, in 2021, 20 of the 22 ready to drink cocktail brands were manufactured by out of state companies that have a combined zero manufacturing jobs in the Commonwealth.
You have likely heard of these companies as they include E.&J. Gallo, Bacardi, Jose Cuervo, Jack Daniels, Jim Beam and Crown Royal. These are the direct beneficiaries of SB 688, and while you may have been led to believe the growth expected in the ready to drink cocktail space will not negatively impact your local craft brewery, consider this:
In late 2021, Britt West, VP and General Manager of Spirits for E.&J. Gallo (maker of High Noon) gave a presentation (I am happy to share the presentation with you if you would like) where he said he believes that spirits based ready to drink cocktails can take ten percent of the current beer market share in the future, equating to $8 billion in lost revenue for beer.
Please have no delusion about the ready to drink cocktails threat to craft beer being nothing short of existential. These are jobs in your community at risk, and I ask that you act to protect them by voting against SB 688.
I appreciate your consideration of this letter, and please do not hesitate to contact me with any questions or concerns you have. I would be happy to arrange a meeting for you with your local brewers as well so you can hear directly from them on this pressing matter.
Sincerely,
Adam Harris
Executive Director
Brewers of Pa (BOP)
