March 3, 2014

LCB Modifies Pricing Regulations To Benefit Pennsylvania Wineries

To ensure consumers have access to the best Pennsylvania wines, the Liquor Control Board Monday announced a regulatory change eliminating the requirement that a licensed Limited Winery cannot sell wine at the winery for less than that same wine sells at Fine Wine & Good Spirits stores.
“Previously, Pennsylvania wineries had to sell their wine to the LCB for a significant discount to account for the agency’s markup and liquor tax,” said Joseph E. Brion, PLCB chairman. “We believe that requirement impacted what wine our in-state wineries sold to us. It is our hope the change will encourage wineries to expand their selection in our stores to benefit consumers and the industry as a whole.”
Currently, the Liquor Control Board sells more than 100 Pennsylvania wines in its listed and luxury product divisions.  In addition, in July 2013, the agency launched the PA Preferred program, adding 43 new Pennsylvania wines to a select number of Fine Wine & Good Spirits stores across the commonwealth.
Under the program, PA Preferred wineries are allowed to submit up to 10 wines to sell at up to 10 Fine Wine & Good Spirits stores of their choosing.  There are 12 wineries participating in the program.
According to the Pennsylvania Winery Association, the Commonwealth has more than 150 wineries, infusing more than $2 billion into the economy.
“Providing consumers with a wide variety of good, quality wines is something that we strive to achieve,” said Robert S. Marcus, LCB member. “Now more than ever, consumers want to buy local, and we want to give them that option when they come into our stores.”
“The regulatory change was a small but important step for Pennsylvania wineries,” said Tim Holden, LCB board member. “We will continue to look for ways to promote our in-state wineries, understanding that the wine industry is a very important business with significant economic impact on the state and local economies.”
The regulatory change took effect March 1.