Prices rise by 4% on Sunday at state liquor stores
Prices of more than 3,500 of the most popular items at state liquor stores will increase by 4% on Sunday, the Pennsylvania Liquor Control Board announced.
In a statement, the LCB cited 40-year, record-high inflation as the reason for price hikes.
“These increases will allow the PLCB to generate revenues needed to offset annual 8% increases in operating costs over the last four years, plus projected cost increases in the current year related to personnel, distribution, leases and credit card fees, among others,” the statement said.
The LCB said that despite incurring pandemic- and inflation-related cost increases for several years, it has resisted hiking retail prices since 2019, only passing along vendor cost increases.
The price increase applies to 3,554 items.
Exceptions include about 5,600 one-time buys of seasonal and luxury items, 2,700 items on clearance, 100 PA Proud items in 10 or fewer Fine Wine & Good Spirits stores and all special order products.
It also does not apply to 397 items on sale in January. Those items will remain on sale, then undergo the same price increase on each item’s regular pricing beginning Jan. 30.
The Distilled Spirits Council expressed concerns over the increases, which it said was given with just 10 days notice.
“Ten days is not nearly enough time for spirits producers to plan for and adjust to price increases,” said Andy Deloney, senior vice president and head of state public policy for the council. “This last-minute push by an outgoing administration will have implications not only for spirits producers, but for the Pennsylvania hospitality industry and its consumers.
“These decisions should be part of a larger discussion with impacted stakeholders, yet this across-the-board increase was done without any consultation or collaboration,” Deloney said. “We are extremely disappointed in the process by which this increase was determined and hope the PLCB will adjust future plans to include consideration of the partners most heavily impacted by their unilateral decision-making.”
Since the LCB delegated pricing authority to its executive director or a designee in 2016, the price increase did not require a formal board vote, the agency said. However, the LCB said the board’s three members discussed and unanimously supported it.
In a response Thursday, LCB Chairman Tim Holden called the council’s objection “surprising at best, disingenuous at worst.”
“Every single one of the 14 (Distilled Spirits Council) members from which the PLCB buys product increased costs and retail prices within the last two years without PLCB input,” Holden said. “Also, since the January price increases were announced, a number of (Distilled Spirits Council) members have approached the PLCB about additional cost increases, disappointed that they didn’t get a ‘cut’ of the planned PLCB increases.”