LCB Fee Increase May Raise Spirits' Costs

PHILADELPHIA (KYW NEWSRADIO) - Prices for wine and spirits may increase in Pennsylvania as the result of a pending hike in the Liquor Control Board's handling fees.

KYW's Tony Romeo reports the handling fees are added to the LCB's formula to mark up the cost of a bottle.  Suppliers will have to decide whether to absorb the added cost by lowering the LCB's purchase price.

At a Senate hearing last week, Amy Christie, executive director of the Pennsylvania Tavern Association, said she had little doubt what will happen for her members:

"Instead of price increases to generate revenue for the PLCB, helping these small businesses thrive would be more productive to the state."

But LCB CEO Joe Conti said the handling fees have not been increased in 17 years, while the state has taken increased profit from the agency:

"I don't think our actions are egregious in any way."

The handing fee increases, ranging from $.35 cents to $1.15 per bottle, depending on the size of the bottle, take effect in January.