Distributors, small-volume retailers deal with new beer laws
Changes in Pennsylvania’s beer laws, which take effect today, give distributors the freedom to sell brews in any quantity. These high-volume retailers, who traditionally sold by the keg and case before adding 12-packs two years ago, now also can sell six-packs, growlers and individual 32-ounce bottles.
This will provide beer-buying customers with another option, and distributors with an opportunity to increase sales. Smaller-volume stores – the so-called six-pack shops – which are limited to selling no more than six quarts at a time, could view that as a threat to their operations. But the owners of two such local locales plan to go with the flow.
“I’m not sure what’s going to happen,” said Jay Amin, co-owner with Mark Italiya of 6-Pack Charlies on Jefferson Avenue, Washington. “But I’m thinking there won’t be much of an impact here. (Sales at) grocery stores will have a bigger impact on distributors.”
That was another statewide change in alcohol policy. A bill that took effect Aug. 8 enabled expansion of wine and beer sales in grocery stores, hotels, bars and licensed restaurants.
Up a nearby hill to the west of Charlies, Tony Mirisciotta and his wife, Teresa, own West End Bottle Shop. Tony isn’t happy with the legislation that became law in mid-November, objecting that an operation such as his doesn’t have the latitude that distributors have. He’d like to sell beer in larger volumes.
“The idea that (distributors) can have single sales is kind of a blow to me,” he said Tuesday, inside his shop on Cumberland Avenue, just off West Chestnut Street. “Distributors can sell in any amount they want. They have no limits now. But I can’t sell over 192 ounces?
“This will provide more outlets for people, but it will cut into us. But what are we going to do?”
There is a measure of uncertainty over what distributors might do. The Observer-Reporter contacted four of them for this article — three in Washington County, one in Greene — without getting a response.
Some distributors who plan to sell six-packs and brews in other small volumes will have to make modifications to their stores. Their shelves, in many instances, are set up for heavier 24- or 30-unit cases. And at established distributors with larger clienteles, those shelves may be stacked high with cases.
Amin, whose Jefferson Avenue shop started wine sales two months ago, questions how much some distributors will push the lower-volume sales. He said it is a mix of economics and math.
“Most distribution stores are not going to sell in smaller quantities,” he said. “Why sell something (like a six-pack) for $10 when it could be $30 (for a case). That’s going to decrease your sales.”
In the meantime, Amin pledges to remain loyal to those who shop in his shop.
“You have to know your customer base. No matter the changes, they’ll come here. We have to pay close attention to what they want.”
Mirisciotta likewise said there is a need for his type of beer establishment.
“If there’s a big football game or big event, people will go to a distributor,” he said. “But other times, people may want a six-pack.”
The co-owner of West End Bottle Shop has been in the beer profession for more than three decades. He laughs while lamenting that “politicians are running things. I think we need people who know the (alcohol) business to help make laws.”
Because of that, he said, he expects more changes — like, hopefully, selling 30-packs.
“In all honesty, things will change by summer,” Mirisciotta said. “If we can sell 30-packs, I will make room. I won’t put 1,000 in, but I will put 100 in.”