Ready-to-drink (RTDs) cocktails, also known as canned cocktails, are premade, hard liquor–based mixed alcoholic beverages purchased for immediate consumption. In 2021, Nebraska and Michigan made changes to lower taxes on RTDs (Ready-to-Drink products). Industry who supported these changes said it would also be beneficial for adult consumers. However, despite these claims, consumers in both states haven’t seen lower prices on RTDs.
About Our Analysis
Public Sector Consultants examined RTD pricing before and after the tax changes, and the analysis shows dramatic price hikes for RTDs in both states: a 44 percent jump in Michigan and a 65 percent jump in Nebraska since the legislation passed. These increases far outpaced inflation and the rapid overall increase in the consumer price index.
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