Consumers to benefit from reduced taxes and increased options

Today, Governor Gretchen Whitmer signed SB 144, a bill to increase market access to ready-to-drink (RTD) cocktails for adult consumers and reduce the tax on these spirits-based products.

“Ready-to-drink cocktails saw a huge increase in 2020 and show no signs of slowing down,” said David Wojnar, Distilled Spirits Council of the United States Senior Vice President and Head of State Public Policy. “Expanding the outlets where spirits-based RTDs can be sold will increase consumer convenience and provide additional revenue to the state. Consumers will also benefit from the reduced tax rate for these popular products. We thank the Michigan Legislature for moving this bill forward and Governor Whitmer for signing it into law.”

Under the new law, the tax rate on RTD cocktails up to 13.5 percent ABV will decrease from $0.48 to $0.30/liter.

The pandemic has accelerated the growth of these products as adult consumers look to recreate the cocktail experience at home with convenient, canned cocktails made with premium spirits, fresh ingredients and low ABV options.

States are taking a closer look at this issue to provide consumers with a more convenient shopping experience and to ensure spirits-based RTD products are being taxed fairly to support consumers and small businesses in their communities