The Sheetz Melt

The Pennsylvania Supreme Court will hear Sheetz's appeal to sell beer (6-packs) at its stores throughout Pennsylvania. This will be an important case as it could likely affect the way Pennsylvania sells beer.

There are a lot of details that matter in this case but here's the basic gist. An Altoona Sheetz received a license from the PLCB, it expanded its dining area and kitchen and only wanted to sell the six-packs to-go rather them serve them in the restaurant portion. This didn't meet the PLCB's criteria for the license and confusion around interpretations of the liquor law pushed the dispute into court. In a similar but separate case, the Malt Beverage Distributors Association is suing Wegman's. Wegman's has received a restaurant license (as opposed to the eatery license like Sheetz wished to acquire) which allows them to sell wine and hard liquor.

Probably one of the more humorous quotes from the article:

"If Sheetz can sell beer, so can Wal-Mart and Costco and all the other big chains," she [Mary Lou Hogan, executive secretary and counsel for the Malt Beverage Distributors Association, which is battling Sheetz in the case] said. "You tell me what will happen to small businesses that try to compete with those giants."

This quote is largely based in absurdity. Amazing as it may sound, large retailers (including Wal-Mart and Costco) in other states are allowed to sell beer, and guess what...the small businesses and bars are still in business. Pretty shocking!

I opined yesterday on the PLCB's control of harder alcohol (which if it were a business--as it pretends to be--would be a monopoly). So today, I'll tackle the novelty of beer in Pennsylvania.

Not that alcohol should be free flowing, but the access to these beverages is significantly limited in Pennsylvania. Although not as tight as liquor and wine, cases of beer can be purchased only from distributors. This drastically controls supply which in turn affects the market price. Allowing more stores, chains and retailers to sell six-packs would be the best thing possible for Pennsylvania. Six packs are rare throughout the state and their costs are sufficiently marked up from their wholesale, per unit price. Therefore, you have limited options in Pennsylvania. You can either buy a smaller amount at a more convenient location (bar or eatery) for a higher price or buy it in bulk from a distributor at a price that's relatively cheaper per unit. For anyone who is reasonably economical, this portends a framework which favors overconsumption.

It's not the court's job to make this change. It's the Pennsylvania legislature that should be addressing these liquor laws and adapt them so they updated for a more modern time.