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Wine and Spirits Producers Protest Pennsylvania’s New Bailment Fee

The coalition warns the $1-per-case bailment fee was imposed with minimal notice, costing suppliers up to $17 million annually

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Overview

  • On July 16 the Pennsylvania Liquor Control Board approved a $1-per-case bailment warehousing fee set to take effect January 1, 2026.
  • A coalition including the Pennsylvania Wine and Spirits Association, Distilled Spirits Council of the United States, American Distilled Spirits Alliance and Wine Institute said the charge will cost producers $15 to 17 million annually and likely push up consumer prices.
  • Industry groups criticized the fee’s announcement just two days before the vote and the absence of any forum for producers to discuss or propose alternatives.
  • PLCB officials said the fee will recoup warehousing costs absorbed since 2012, improve inventory management and will not directly raise retail prices unless suppliers seek higher markups.
  • Under Pennsylvania’s bailment model suppliers store products at two state-contracted distribution centers before sale, a practice shared by several other liquor control jurisdictions.