Local vendors, distilleries excited by canned cocktail rule change

Appalachian Brewing Company has sent its first large-scale shipment to a Pennsylvania Liquor Control Board warehouse in Pittsburgh — and thanks to a recent change in state law, it won’t be the last.

The Harrisburg-based brewery sells beers and craft sodas, but according to Joseph Hoover, its director of finance and administration, it expects to see a boost in business now that it can offer a new product: canned, ready-to-drink cocktails.

A law that went into effect last Monday means the brewery’s business “looks like it’s going to have a pretty serious uptick,” he said. “The expansion they’re expecting is going to be pretty broad and quick. I know all the Sheetz stores have orders fulfilled, and they weren’t a customer of ours before.”

Sheetz is just one of the new vendors — along with grocery stores, gas stations, beer stores and other vendors — that can now apply for a permit to sell canned cocktails. Previously, the beverages, which are also known as “ready to drink” cocktails or RTDs, could only be sold for take-away purchase at state-run Fine Wine and Good Spirits stores.

Gov. Josh Shapiro celebrated the change at a kickoff last Monday, calling the move a step towards “real freedom” — though he forgot his own ID while trying to purchase canned cocktails at a convenience store.

For those who do remember their IDs, the new law makes it easier to buy popular brands of canned cocktails, such as Surfside and High Noon. And for local producers, it’s a chance to get their products onto more shelves.

Hoover’s company offers three canned cocktail products: an espresso martini, a vodka lemonade and a transfusion. They’re sold in 12-ounce sleek cans, which is under the new law’s limit of 16 ounces. And those products will have company on the shelves.

Lawrenceville Distilling Co. sells a spiked tea canned cocktail dubbed “The T,” after Pittsburgh’s light-rail system. The new policy is a chance to reach new vendors, co-owner Joe DeGroot said.

“I welcome the change,” he said. “I think it’s great that the state’s opening up accessibility to ready-to-drink cocktails. I was all for them passing this law, so I’m excited to see where it takes us.”

‘They’re doing their homework’

Shapiro said on X that the new law is projected to raise $137 million in new tax revenue for the state. Within a day of the new rules going into effect, the PLCB had received 1,595 applications for permits to sell the drinks, and issued 1,416 permits, according to a statement from Shapiro’s office.

Local companies and stores have been seeing interest in the canned drinks build for some time.

Tyler Azar, general manager at Creekside Beer in Sewickley, said canned cocktails are a fast-growing part of the market.

“People are getting burned out on big, heavy beers. These are more refreshing: They appeal to different kinds of consumers,” he said. “Personally, I like the taste of most of these RTD’s. [They’re] good to drink when you’re out and about at bars and things like that. I think it’s going to be big.”

At SAVE-MOR Beer & Pop Warehouse in Squirrel Hill, owner Steve Klein says people have often come in looking for canned cocktails — but until now, the store hasn’t been able to stock the drinks.

“We’ve had a lot of customers who have come into our stores and asked for them, but we haven’t been able to sell them, because it was only a state-store item,” he said.

SAVE-MOR got its license this past Monday, and received a shipment of canned cocktails the day after. Customers have come in looking for the drinks after seeing that they were available on the store’s social media, Klein said.

Appalachian Brewing Company sometimes gets questions about canned cocktails, especially from people who weren’t previously familiar with them, Hoover said.

“People are curious. They’re doing their background and their homework,” he said. “We get a lot of questions about how many calories these are – that’s something we’ve never even thought about. It’s a learning curve for everybody.”

The company has already picked up some additional customers, but expects it may be a few months before it can measure the new law’s impact on sales. But Hoover sees buzz building.

“The demographic that’s kind of leading the way is Gen Z and more health-conscious millennials,” he said. The cocktails “are lower in alcohol in some cases or sometimes no carbs, and sometimes they have a lower caloric value. It appeals to a lot of people, and gives people a different option.”

Many of the earliest orders that stores have put in have been placed with national brands. But DeGroot said he isn’t intimidated.

“The fact that we would be able to get on the same shelf space with some of these larger companies is beneficial,” he said. “I think as people learn about small-batch, craft canned cocktails … they’ll see that the fresher ingredients and the craftsmanship of small batch is a much better product. When we’re competing with the big guys, that’s what people are looking for.”

‘Does that cut into our profit margin?’

At Friendship Beer Distributor on Baum Boulevard, Sourav Roy says the store plans to start stocking canned cocktails soon, once they’ve received certifications for the new license.

“It’s going to be just regular White Claws, and anything that’s popular, like Surfside,” he said. In a few months, after the store has more data and a better sense of how sales are going, the distributor may look into buying more local varieties of cocktails.

Not every alcohol vendor is jumping at the chance to sell canned cocktails. Dan Rinkus, who handles ordering at Bierport in Lawrenceville, says his store isn’t planning to seek a license to sell RTDs.

The store sells craft brews and is connected to the Row House Cinema. It also features a bar downstairs where customers can enjoy their drinks and order mixed cocktails.

The price tag of the permit — $2,500 — didn’t seem worth it for Bierport, Rinkus said.

“Our bar section to some degree has some cocktails. Are the RTDs then worth it in that regard [or] does that cut into our profit margin?” he said. “We talked about it, and just kind of went, ‘I’m not sure that’s necessarily the right decision for us right now.’”

Creekside Beer is still waiting on the arrival of its first shipment of canned cocktails. Agar expects it to arrive on Tuesday.

He hopes the cocktails will bring in customers who might otherwise have had to drive all the way to a liquor store. Customers who already came to the store to buy beer will be able to take advantage, too.

“I think it's going to be gangbusters for the store,” he said.