Beverages

State Restrictions on Adult Seltzer Sales Nearing a Change

Lawmakers pursue eliminating rules differentiating between spirits-based beverages and those made from malted barley or fermented sugar
High Noon Spirits Company Lime and Peach
Photograph courtesy of E. & J. Gallo Spirits

Buying low-alcohol seltzer beverages such as High Noon from a convenience or grocery store is illegal in Texas—while products such as Truly and White Claw are legal.

But this disparity might soon change.

Texas, along with several other states, is discussing legislation that would legalize selling spirits-based ready-to-drink (RTD) cocktails in these stores, according to a Forbes  report.

State law in many parts of the country prohibits retailers from selling spirits-based RTDs like High Noon even though it’s OK to sell similar RTD adult beverages made from fermented sugar or malted barley.

“This disparity in regulation of similar and competing products, which lawmakers have ended recently in many places, is something legislators in more state capitals are working to address in 2023,” Forbes said.

In several states in the last few years, governors and lawmakers have enacted legislation “to end disparate access in the RTD beverage market by moving from source-based alcohol regulation to alcohol content-based regulation,” Forbes reports.

Vermont in 2022 became the most recent state to allow selling spirits-based RTDs in retail outlets that sell wine and beer. It also became the 25th state to offer a reduced tax rate on low alcohol-by-volume (ABV) spirits products, according to Forbes. There is similar legislation waiting for approval in other states this year.

Forbes cited an example of how selling canned cocktails can be restricted by its source. In North Carolina, a customer can buy White Claw or Truly seltzers at a convenience or grocery store but must buy High Noon or Caddy Clubhouse, from Raleigh, North Carolina-based Next Century Spirits at a liquor store run by the government. In 2021, state lawmakers introduced legislation to correct this disparity by allowing the sale of spirits-based RTD products in retail outlets already selling canned seltzers like White Claw; however, it didn’t pass before the previous session ended.

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