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Minimum Retail Pricing - Spirits
Date: November 30, 2004
Contact: Legislative Liaison, Ken Wozniak, 517-322-1390
Agency: Michigan Liquor Control Commission
Minimum Price Replaces Uniform Price for Spirits
PA 407 of 2004 took immediate effect today allowing liquor licensees the flexibility of pricing spirit products above a statewide minimum. The change to section 229 of 1998 PA 58, replaces the previous requirement of a "uniform" price for spirit products, with a "minimum" price that can be altered upward by retail sellers. The state markup at 65% remains unchanged.
Spirits currently sold at licensed on-premises locations (i.e., bars, restaurants) may be sold at any price above cost to the retailer. Thus, the statute change effects primarily the licensees who hold a Specially Designated Distributor (SDD) for the sale of spirit products for off-premises consumption (i.e., party or convenience stores). Market competition will determine the variation in prices and distance above the minimum price, if any.