North Carolina legalizes to-go cocktails permanently
29 states already enacted laws to make ready-to-go cocktails permanent
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North Carolina residents can, once again, order cocktails to go.
On Monday, Gov. 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, more than 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).
This picture taken on Oct. 9, 2021, shows a member of the bar staff preparing a kratom-infused mocktail at the Teens of Thailand cocktail bar in Bangkok. (JACK TAYLOR/AFP via Getty Images / Getty Images)
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.
Günter Windhorst, owner of the cocktail bar "Windhorst" in Mitte, offers "cocktails to go" as of today. Fans of this special drink can choose from a menu of cocktails. (Paul Zinken/picture alliance via Getty Images / Getty Images)
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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The removal of the mixed beverage tax on spirits ready-to-drink cocktails will pave the way for more local restaurants and bars to sell this particular product, which is the fastest-growing spirits category. Revenue in the category surged 26.8% in 2023 to $2.8 billion, according to DISCUS.
Jeff Bell prepares cocktails to-go at the bar Please Don't Tell in Manhattan, March 19, 2020, in New York City. (Victor J. Blue/Getty Images / Getty Images)
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.