PA State Gov Getting Out of Liquor Pricing?

The AP reports that The Pennsylvania Liquor Control Board may allow stores to set their own prices on liquor. Since Prohibition, the state has required liquor stores to have uniform prices across the entire state
for the first time since Prohibition. Sellers would like the change to enable them to compete with bordering states (a “temporary” 18% tax imposed after a flood in 1936 helps keep prices high and consumers buying in New Jersey and Delware).

Some on the LCB are concerned that buyers in the western part of the state, where there is less competition, would pay more.

For anyone not involved in the alcholic beverage industry, the dizzying array of rules on everything from pricing to channel structure to information sharing, varying from state to state and even county to country, makes this a challenging pricing environment. A minor reduction in (over) regulation would be a small but welcome move.

Comments are closed.