The Indiana House of Representatives on Tuesday approved legislation — for the second year in a row — letting beer wholesalers sell liquor-based ready-to-drink cocktails.
“The lines between suppliers are a lot more fuzzy than they used to be. Consumer tastes are changing and so is the industry along with them,” author Rep. Ethan Manning, R-Logansport, said on the floor.
He said House Bill 1025 “creates competition within the wholesale tier where (it) does not currently exist.”
Indiana operate a three-tier alcohol system – the manufacturer, the wholesaler and the retailer.
State law provides for combined wholesale licenses — beer and wine, or liquor and wine — but generally doesn’t allow crossover. Manufacturers, however, are increasingly crossing those lines as they cash in on a mixed cocktail boom.
Read more: Beer and liquor wholesalers face off over mixed drinks legislation
The bill would put liquor-based mixed beverages under a wine license, allowing beer wholesalers to sell them. In exchange, it removes a 1 million gallon cap on the quantity of flavored malt beverages liquor wholesalers can vend.
But liquor wholesalers have argued that the change lets beer wholesalers into their territory without giving them comparable access in return. Several said they do not sell any amount of flavored malt beverages at a committee hearing last week.
The House voted to approve the bill in a 74-20 vote. Thirteen of the votes were from Manning’s fellow Republicans.
The House passed the same legislation 77-21 last session. It died in the Senate when it wasn’t heard in committee.