North Carolina residents can, once again, order cocktails to go.
On Monday, Governor Roy Cooper signed SB 527 into law, which permanently reinstated cocktails to-go, a move that will allow restaurants and distilleries in the state to boost their revenue streams.
The law will also effectively lower the tax rate for spirits ready-to-drink cocktails and permit alcohol sales on certain holidays.
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During the pandemic, over 35 states, including North Carolina, allowed restaurants, bars and distilleries in some states to sell cocktails to-go in an effort to provide some economic relief while social distancing mandates were in place, according to Lisa Hawkins, a spokesperson for the Distilled Spirits Council of the United States (DISCUS).
However, the executive order put in place in North Carolina expired in June 2021 all while other states made it a permanent measure, Hawkins said.
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Today, 29 states, including North Carolina and the District of Columbia, have established laws to allow the sale of to-go cocktails.
The lower tax rate on Spirits-based ready to drink cocktails, a relatively new category, will not only boost options for consumers but also benefit the local economy, according to Hawkins.
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For oe., the removal of the mixed beverage tax on spirits ready-to-drink cocktails will pave way for more local restaurants and bars to sell this particular product, which the is the fastest-growing spirits category. Revenue in the category surged 26.8% in 2023 to $2.8 billion, according to DISCUS.
The state follows Iowa, Mississippi, Michigan, Nebraska and Vermont in lowering the tax rate for such drinks, effectively expanding market access.
So far this year, a dozen states have considered following suit.
