Makers of ready-to-drink cocktails pour over new opportunity

Local ready-to-drink cocktail manufacturers say the passage of a new law allowing the sale of their beverages to an expanded network of retailers is a “huge opportunity”. 

 Gov. Josh Shapiro signed the legislation into law last month that allows restaurants, hotels, supermarkets, convenience stores and beer distributors to sell ready-to-drink spirit beverages starting August 31, once permits are obtained. The bill will add more than 10,0000 new retail outlets to the mix. 

 Keith Krem, COO, KLYR Rum LLC, Lewisberry, York County, said, “The word is opportunity.” 

“It’s no secret that Pennsylvania is a difficult state to sell spirits in. Being a young brand, being able to sell to retailers is huge,” he said. 

Patrick Shorb, president of York-based Holla Spirits, has been following the progress of the legislation for the past two years.  

Shorb said he was surprised to see it passed. 

“It’s a miracle. It expands our marketplace tremendously,” he said. “The outlets and venues are enormous, and it gives us huge marketplace potential.” 

Jach Krause, managing director of Horse Hollow Distillery, agreed, saying the distillery at Sickman’s Mill in Conestoga, Lancaster County, will see “huge growth” if the retailers can get the proper permitting.
“This is a very exciting change that benefits manufacturers like us,” said the producer of Jimmy Juice. “It’s good Pennsylvania is adapting to current times.” 

All three said they are developing relationships with potential clients as the August 31 opening approaches.  

“We are stocking up and developing relationships,” Krause said. “We’ve only been open 13 or 14 months now and we are expecting a big boost in sales.” 

In fact, Krause said the distillery’s 13,000 can capacity is projected to grow to 30,000 each week as Jimmy Juice gets into more retailers. 

“People have had to buy here or get it at a bar,” he said. “We are now in the state liquor stores so we have an outlet. Now, people will have dozens of places to buy it.” 

“This is not a light switch,” Krem said. “We will let things play out as retailers get licenses.” 

Krem said this is something his company is looking at for a 2025 conversion. “This is a great unknown for us as we are on the smaller side, but we are looking to take advantage and get our products into customers’ hands,” he said. 

Shorb said he is determining how and when to jump into the market. 

“It’s a feeding frenzy,” he said. “There are hundreds of ready-to-drink options, and this is for national suppliers. Pennsylvania is years behind other states for this type of product so others will pummel Pennsylvania. The dominant players will unleash their products here.” 

Even so, Shorb said he’s been talking to distributors and grocers who have wanted to carry his products for a long time.  

“This is a massive opportunity. I can’t tell you how many meetings and phone calls I’ve had through all the false starts with this bill. We’re playing a game of catch up, so we’ll see how it all plays out,” he said, adding this is great for the consumer because they will have more to choose from at more places.  

“There is no doubt this will help grow our business,” Shorb, who said Holla Spirits ready-to-drink beverages are sold in 600 state stores, said.