Bills Allowing Ready-to-Drink Cocktails Introduced in Texas

A bill permitting spirits ready-to-drink cocktails (RTDs) to be sold in grocery and convenience stores alongside beer- and wine-based beverages that have similar alcohol content was introduced in the Texas Senate and the Texas House.

“As industries innovate and new products become staples in the marketplace, it only makes sense for us to take a look at ways government can reduce regulatory red tape," said Sen. Kelly Hancock (R). "I look forward to continuing to work on legislation that keeps free market principles at the core of Texas' economic success.”

A similar bill, HB 4077, was introduced by Reps. Cody Vasut (R) and John Bucy III (D).

“This is a commonsense bill that will expand competition and boost small businesses in Texas,” said Rep. Vasut. "The Lone Star State should be leading on this issue. This bill will put Texas on par with other states that already permit low alcohol-by-volume ready-to-drink sales in grocery and convenience stores.”

Expanding access for spirits RTDs would generate approximately $160 million in new state tax revenue in the first 3-5 years according to an analysis by the Distilled Spirits Council of the U.S. Eighty-six percent of consumers agree that spirits RTDs should be sold where beer and wine are, including in grocery and convenience stores, according to survey data.

“This is a pro-business bill and a logical step that would help bring decades-old alcohol laws in line with modern-day products,” said Rep. Bucy. “That’s why there’s a bipartisan push to get this over the finish line.”

Texans for Market Freedom welcomed the introductions. The coalition is comprised of consumer- and business-focused organizations including the Texas Food and Fuel Association (TFFA), Texas Retailers Association (TRA), Consumer Choice Coalition (CCC) and Distilled Spirits Council of the U.S. (DISCUS).

“Spirits RTDs continue to gain in popularity, and states all across the U.S. are taking a look at beverage laws to ensure consumers of these products are being treated fairly,” the coalition said. “Expanding sales to convenience and grocery stores is a responsible move that will drive business growth and give Texans greater access to the products they enjoy. Texas consumers are getting left behind, and it’s time to modernize our laws to meet demand and support the Texas economy.”