PITTSBURGH (Newsradio 1020 KDKA) The Pennsylvania Liquor Control Board (PLCB) recently announced they were going to raise the prices of products in the state this upcoming August.
The Distilled Spirits Council of the United States (DISCUS) and the American Distilled Spirits Alliance (ADSA) sent a letter to the PLCB to reconsider their planned actions.
The letter to PLCB Chairman Tim Holden stated that there couldn't be a worse time to raise the prices to Pennsylvania consumers.
COVID-19 has caused a loss of about $16 million per week with the closure of state stores, but the letter would go on to say "It would be incredibly misguided to increase prices on spirits products now to make up for that shortfall."
The letter to PLCB was penned by DISCUS President and CEO Chris Swonger and ADSA President Matt Dogali.
As it stands right now, the PLCB's flexible pricing authority lets them adjust liquor prices as they see fit.
"We have raised concerns repeatedly that the PLCB's unchecked flexible pricing authority has led to price increases that have negatively impacted Pennsylvania consumers," Swonger and Dogali added. "Price increases combined with closed stores is not a business model for future success…We are hopeful the PLCB's pricing standards and policies will take into account the hardship that many in the hospitality industry are currently facing because of this crisis and could continue to face for months to come."
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