In addition to a happy New Year, there is about to be an unlimited amount of “happy” at many Pennsylvania alcohol manufacturers! Recently, the Pa.L.C.B. released a Legal Advisory Opinion addressing several questions on brewery pricing to consumers. In doing so, the Pa.L.C.B. stated that, because a brewery is not a retail licensee and is considered a manufacturing licensee, it would not be subject to the Pa.L.C.B. regulations on discount pricing practices and Liquor Code’s happy hour restrictions. This was answered in the context of whether a brewery could offer a different pricing scheme to licensees and non-licensees, which the Pa.L.C.B. answered in the affirmative.
Although the question was asked and answered on behalf of a brewery, this same opinion would apply to other Pennsylvania manufacturing licensees. That means that, in addition to breweries, this applies to limited wineries, wineries, and limited distillery and distillery licensees selling from their manufacturing license. This does not apply if the manufacturer is selling its products in a couplet scenario, with a corresponding Restaurant, Brew Pub, or Eating Place Dispenser license. Therefore, if you operate your tasting room under your manufacturing license only, you no longer need to worry about complying with the Liquor Code’s happy hour restrictions or the Pa.L.C.B.’s regulations pertaining to discount pricing practices. Therefore, you are free to discount direct sales to consumers in whatever manner you see fit.
For information regarding national and state liquor law matters or general manufacturing and distribution advice, please contact our Liquor Law, Licensing, Manufacturing, and Distribution Practice Group: Liquor Law Department Chair Theodore J. Zeller III, Esquire (email@example.com); David C. Berger, Esquire (firstname.lastname@example.org) for Pennsylvania and New Jersey retail and manufacturing licensing; or contact our offices at 610-391-1800.