Glen Simister stocks beer at the Utah State Liquor Store in Holladay in this file photo from July 2, 2015. | Kristin Murphy, Deseret News
SALT LAKE CITY — Some beer sold in state liquor outlets might end up in the landfill as Utah grocery and convenience stores start stocking heavy beer under a new law that takes effect Friday.
The Utah Legislature passed a bill earlier this year allowing retailers to sell beer containing 4% alcohol by weight, up from the longstanding 3.2% standard. Grocery store shelves have become increasingly thin as manufacturers have stopped shipping the weaker product.
Meantime, the Department of Alcoholic Beverage Control might not be able to move, even at discounted prices, all the beer in its warehouse before Friday because under state law it can only sell “liquor.” Beers under 4% alcohol by volume do not qualify as liquor.
“We can’t sell them and there’s no secondary market,” said Sal Petilos, DABC executive director. The state will discontinue 106 products, including some popular brands, in the transition.
Cade Meier, DABC deputy director, told the alcohol commission Tuesday that the department might be forced to destroy unsold bottles.
“I don’t anticipate that being very much, if any at all, but you never know,” he said.
If there is a large amount, it would be disposed of at the city landfill, Meier said, adding there are also other options.
“Have you ever considered the impact that would have on the seagull population?” Commissioner Stan Parrish quipped.
State lawmakers struck a deal in March to allow beer with slightly more alcohol content to be sold in grocery and convenience stores while a work group studies the issue. The original version of the bill that a House committee rejected would have raised it to 4.8%. The compromise headed off a possible 2020 ballot initiative on the issue.
The legislation also raised the tax on a 31-gallon barrel from $12.80 to $13.10 as a result. The State Tax Commission expects the increase to generate $350,000 a year. Beginning next July, the money will go to alcohol enforcement and treatment.
Utah was one of only two states left selling the lower weight beer after laws in Oklahoma, Colorado and Kansas recently changed, leaving brewers to decide whether to continue what would be a specialty item for a shrinking market. The new law still leaves Utah among states with the lowest alcohol content for beer sold in retail stores.
Budweiser plans to recognize the death of 3.2 beer in Utah with a “funeral” procession Wednesday night. The Budweiser Clydesdales will leave Vivint Smart Home Arena and visit bars at the corner of 200 South and State Street.
“After 86 long years, this Halloween marks the death of Utah’s 3.2% beer laws and now Utahns can finally drink Budweiser with the same recipe as the rest of the U.S.,” according to a company press release.
Kate Bradshaw, a lobbyist for the Utah Food Industry Association, said brewers, distributors, wholesalers and retailers are doing the best they can with the transition. While shelves in many stores are threadbare, they will be back to normal in a few weeks.
Consumers will be able to buy beers at lower prices that were previously sold only through state liquor stores and subject to high markups, she said. They will also see new brands in stores, including Alaskan, Founders and Red Stripe. Retail outlets sell about 94% of all beer sold in the state.
The state could see a drop in revenue as it stops selling certain beers, which account for about 10% of Department of Alcoholic Beverage Control alcohols sales.
“When you take that away, the fear on the department’s part is that we may not be able to make up for it completely,” Petilos said. “While we anticipate sales to go up, we want to make sure that those who like to consume beer are able to get the things that they need.”
Overall, state alcohol revenues continue to rise, and were up 7.8% this year over last year as of the end of September.
from Deseret News https://ift.tt/36j7Gof
No hay comentarios:
Publicar un comentario