Pennsylvania imposes new liquor fee that will raise alcohol prices

In Pennsylvania, residents will face higher liquor and wine prices starting January 2026 due to a newly approved fee by the Pennsylvania Liquor Control Board. This 'bailment fee' of $1 per package is designed to cover rising costs in warehousing and distribution systems. The decision was made at a PLCB meeting on July 16, 2025, just two days after the proposal was made public, limiting time for public commentary and objection from stakeholders. The fee is projected to result in at least $15 million annually for the PLCB, which some industry groups argue will ultimately burden consumers. The distribution of the fee is noted to be uneven; for instance, a four-pack of canned cocktails will incur the same $1 charge as a full case of wine, potentially distorting pricing in the market. Moreover, various industry representatives have expressed concern over the broader implications of this fee amidst increasing competition from hemp and cannabis markets, along with tariffs affecting imported alcohol costs. Additionally, these changes arrive at a time when global alcohol consumption is reportedly decreasing which poses further challenges to producers. Although a PLCB spokesperson claimed that there are no immediate plans to pass costs on to consumers, industry observers are skeptical. The lack of alternative distributors in Pennsylvania's monopoly system leaves producers with limited options regarding how to handle the new fee—whether absorbing the cost or transferring it onto consumers through higher prices. Given this challenging landscape, there may be greater calls in Pennsylvania for a reevaluation of the state’s wine and liquor sales monopoly in light of rising operational costs.