The sales decrease is the second in 30 years.
During the 2024-2025 fiscal year, total alcohol sales in Pennsylvania totaled $3.16 billion. This total decreased by 0.6% from the previous year, or by about $21 million.
The recent report released by the Pennsylvania Liquor Control Board also shows that net income for the year totaled $135.2 million, which is about $106.9 million or 44.2% less than the year before.
Despite the decline, the Board said it returned $877 million to state and local governments, including more than $815 million to the state’s general fund. The fund supports schools, health programs, and public safety.
According to Pennsylvania Liquor Control Board spokesman Shawn Kelly, the last time the agency experienced a sales drop was during the 2019-2020 period during the COVID-19 pandemic. Sales during that fiscal year totaled $2.56 billion, which was about $110.9 million less than the year prior.
“Customer habits are changing and there is a trend now away from wine and spirits and toward ready-to-drink cocktails. People are looking at health trends as well,” Kelly said in a recent interview.
Contributing to the net income decrease are increases in payroll and benefits and changes to its pension and other post-employment benefit expenses, according to the Pennsylvania Liquor Control Board.
A Gallup poll on its 90th year recently recorded the lowest percentage of adults who say they consume alcohol in the survey’s history at just 54%.
With the decline in alcohol consumption and overall sales, local bars and restaurants are struggling to bring patrons in the door. Some have taken on new initiatives, such as expanding their happy hour offerings or adjusting their closing times to stay in business.
In 2024, the Liquor Code was amended to increase the number of designated happy hours permitted by law from 14 to 24 hours per week. The amendments also allowed the businesses to advertise discounted meal combos with adult drinks.
