Could NC residents soon buy canned cocktails at the grocery store?
AI-generated summary reviewed by our newsroom.
- Lawmakers discussed allowing premixed cocktails to be sold in grocery stores.
- Proposed bill would tax premixed cocktails at $2.50 per gallon.
- Opponents warned the change could take away local revenue and lead to privatization.
Customers could see premixed beverages from brands such as High Noon or Cutwater Spirits on grocery store shelves in the future.
State lawmakers on Tuesday discussed the possibility of selling ready-to-drink cocktails in commercial retailers, just as beer and wine are sold.
Currently, those types of beverages are sold only in Alcoholic Beverage Control stores, which are operated by local ABC boards.
Supporters of the law change said the drinks are in high demand for customers and hospitality businesses, who right now find purchasing burdensome. Those opposed argued that the change could lead to privatization of all liquor products and take revenue away from local ABC boards.
Rep. Ray Pickett, a Republican representing three northwest counties, brought the potential changes to House Bill 921 to the House ABC Committee meeting. He said another meeting and vote on the changes is coming soon.
The ready-to-drink beverages are often combinations of spirits and drink mixes, like juice or seltzer.
The definition of a premixed cocktail would be limited to a maximum 13% alcohol by volume, according to the proposed amendments.
The premixed beverages would be taxed at $2.50 per gallon. In comparison, beer in North Carolina is taxed at around $0.61 per gallon.
Support and opposition
Andy Ellen, the president of the North Carolina Retail Merchants Association, said allowing premixed cocktails onto grocery store shelves “meets consumers where they are.”
He said the ready-to-drink beverages have lower or comparable alcohol by volume levels to beer and other products currently on the shelf.
“This bill is not a move toward privatization,” Ellen said. “ ... This is an attempt to serve your constituents, your consumers, where they would like to buy alcohol.”
The North Carolina Association of ABC Boards and Rep. Shelly Willingham, a Rocky Mount Democrat, both emphasized that the change could lower local revenue.
Jon Carr, a lobbyist for the association arguing against the bill, said the ready-to-drink beverages represent the fastest-growing alcohol category across the country, and that Wayne and Craven counties make 11% of their sales from that type of drink.
“We also lose ancillary sales from folks not coming into our stores for these products,” Carr said. He said that would reduce revenue that would be going toward local law enforcement, alcohol education and rehabilitation.
Kris Gardner, the executive director of the North Carolina Beer & Wine Wholesalers Association, said the group has historically been against selling canned cocktails out of concern over a bigger push for privatization efforts.
“At the same time, we recognize that the product category for low-ABV premixed cocktails is evolving,” he said. “So, too, is our association’s position.”
Gardner said the association wants funding secured for a new ABC warehouse before legislation governing premixed cocktails is passed. He said the current warehouse is old and won’t meet emerging needs.
