Pa. court rules against Sheetz takeout beer sales
HARRISBURG — A takeout-only policy for beer sales at a Sheetz convenience store is not allowed by state law, the Pennsylvania Supreme Court ruled Monday.
The high court's 5-1 decision said the Altoona Sheetz's retail dispenser license requires some beer to be consumed within the store, which Sheetz has not been allowing. Sheetz had argued its license allowed on-premises beer drinking but did not mandate it.
The court said Sheetz's interpretation of the law would expand the character of retail dispenser beer licenses.
"While a policy determination in this regard may well be accomplished by our Legislature, it is not our role to sanction such a momentous transformation," Justice Max Baer wrote.
The ruling was a victory for the Malt Beverage Distributors Association of Pennsylvania, which represents retailers that sell beer by the case or keg. Association lawyer Bob Hoffman said state regulators now should review whether other license holders are following the rules.
"The court has recognized that there are some discrete distinctions between what different players in the beer distribution system can do, and what Sheetz was trying to do here improperly infringed into what is the domain of the beer distributors," Hoffman said.
Sheetz general counsel Mike Cortez said the ruling was disappointing and after reviewing the decision the company expects either to apply for a new license from the state or simply begin allowing people to drink inside the store. Sheetz has been selling beer at a partitioned-off fast-food restaurant section of its store.
"I can tell you that our customers very much enjoyed the opportunity to buy beer at that location — and they've done so," Cortez said.
Pennsylvania Liquor Control Board spokesman Nick Hays said the ruling was being reviewed to assess its impact.
The liquor control agency, which was a party to the litigation, had previously expressed concern about how the case might affect thousands of bars, restaurants and other businesses that hold similar licenses.
In the dissent, Justice J. Michael Eakin said Sheetz should be allowed to ban on-premises drinking if it wishes.
"The statute's plain language clearly does not require sales on-site, nor does it prohibit a retail dispenser from choosing to sell all its beer for takeout, and one requires no 'hypertechnical' linguistic gymnastics to reach such a plain conclusion," Eakin wrote.
Hoffman said the decision might have implications for other cases, currently winding through the appeals process, that challenge beer retail licenses being granted to grocery stores, particularly the Wegmans chain.
Altoona-based Sheetz has more than 350 stores in Pennsylvania, Maryland, Virginia, West Virginia, Ohio and North Carolina. It employs more than 12,000 people.