Goose Island Employee Only pack

I have never read a 'definitive' explanation for why beer prices are higher in PA but I have a theory that is is due to the laws/regulations in PA which limit the number of licenses for beer retailing. When I visit family in Texas there is a large number/variety of retailers which sell beer: every supermarket, many (every?) convenience store, liquor stores, etc. In Pennsylvania they limit the number of places that can sell beer. For example in my town have a half-dozen places I can go grocery shopping but only one business (Wegman's) took the step (which are somewhat onerous) to obtain a beer retail license. Consequently they are not competing with 5 other grocery businesses and to a certain measure can price however they want; there is no competition from other grocers to keep prices low. In my opinion this limited competition permits the small number of folks who have licenses to sell beer to charge higher prices; a lack of competition effect.

Take the above FWIW.

Cheers!

 

All are very good points. I'm not going to continue on this subject any further, lest my posts get deleted for being off-topic, but after posting my question I have read an article stating that it is because of a 18% tax markup due to a flood that occurred back in the early 1900s. I have no idea how accurate the article is. Check it out if you have time.

Back to subject at hand: I'm definitely willing to try this if it is at the average market price for large craft breweries (~$16 a 12 pack). That altbier looks really interesting. If it's anything over $20, then no thanks.

 

The 18% Johnstown Flood Tax is a ‘hidden’ tax on liquor and wine in Pennsylvania. It does not apply to beer.

Some more details here: http://plcbusersgroup.org/pdf/liquor-tax-in-pa.pdf

Cheers!

 

But...5.8 ABV. Too high for a mild if we're picking nits. If the beer is showcasing citrus and pine with some darker malt flavors then a Dark/Black IPA sounds about right.

The style description is right here - https://www.beeradvocate.com/beer/style/175/

 

Some good points Jack. I think competition has a bit to do with it but not the biggest piece.
I remember picking up 12 packs of Sierra Nevada in Jersey and then going to my beer distributor a few days after. I talked to the owner about his prices and asked why his SN was so much more than in Jersey. He told me his cost was more than I paid at Wegmans in Jersey. True? I cant be sure. I feel like the distribution system has a big part in this cost.

At the end of the day if you buy a case of beer in PA you will pay a good amount less than buying 6 packs out of state. Even going to TW in DE to buy beer does not produce that much that is less $ than in PA. Sure SN and a few other big guys are much less but many others are more when you divide PA case price by 4.I stopped making the drive almost a year ago. I will stop if in the area. Start to talk about grocery stores and the prices get a bit out of hand.

I would love to know the real reason for the higher cost on some beers.

Enjoy

 

So, how do you personally reconcile this difference? If you can purchase cases cheaper in PA but the distributor states his costs are higher than the price you paid in NJ how can this be?

And I would also like to know the 'real' reason.

Cheers!

 

I was talking to him about Sierra Nevada. Their beer seems to be cheaper everywhere but in PA. Other beers are $32-40 a case here but end up as $10-12+ six packs, thus better prices by the case. Goose Island is more here than other states as well. Going to guess NB is cheaper elsewhere too.

Enjoy

 

Maybe Bill Manley (@sierranevadabill) will answer this question:

Bill, why is Sierra Nevada at the Wholesale level priced higher in PA than surrounding states (e.g., NJ)?

Cheers!

 

In NJ, there is no single "wholesale price" for Sierra Nevada's (or most any other brewer's) beers. It is legal for NJ distributors to offer quantity discounts* as long as they offer the same discount to ALL their retail customers. Of course, that means smaller stores can't always take advantage of the largest discounts, but the purchases can be combined with other stores owned by the same licensee (limit of two for off-premise) AND also for members of co-ops for most brands. Lots of NJ "chain" liquor stores are actually owned by individuals but are members of a co-op ("Buy Rite" being the most notable).

So, for SN - using 2 year old prices - the wholesale case price might be $32, buy 5 or more cases and take $1 off each case, buy 10 or more and take $4.50 off the case price. Discounts for some other brands start as low as 2 cases and go up to 98 ( for Coors Banquet & Light). Some beers within a brewer's portfolio are discounted on a "mix and match" basis. So, it is entirely possible for a NJ retailer to also say that another NJ store is selling a Sierra Nevada beer for less than he paid for it.

Not sure how the prices vary between the different SN distributors in NJ (of which there were 5 before the recent sale of the Banko-owned Warren/Hub City co's - so it looks like it is down to 4?)

The state also apparently allows further discounts for a "full" truck load (500 cs. or more of mixed brands, etc) and, seems I've heard of a distributor offering a discount for retailer pick-up at the wholesaler warehouse.

One aspect of the price differences for sixpacks between NJ and PA that I always heard (long before the recent changes that allow retail distributors to sell less than case quantities and the growth of grocery and convenience store licenses - so, "things have changed...") was that in NJ a license allowed for beer, wine and spirits sales, with the latter two typically having larger percentage markups than beer. In PA, a retailer could only sell beer and as a result their markup was higher than NJ beer.

* Now, some might say "Quantity discounts? WTF. Don't they encourage stores to overbuy to get the discount and then wind up with old out-of-code stock on the shelves?"
Yup, unfortunately.

 

I just assumed like most things that Pa basically has a higher sin tax on things like beer and alcohol, tobacco. . My dad buys in NJ and they're always dollars cheaper. We have that here in NC with gas prices, federal , state, and then the city taxes, it's not unusual for one city to be as much as 15 cents a gallon more or less.

 

NJ excise tax on beer is 12¢/gallon, PA's is 8¢ (both also charge their state sales tax)- so, while PA ET is lower both states' tax on beer is a pretty insignificant factor for the retail cost for most "craft" beers - well under 2¢ for a 12 oz. can or bottle.