Court rules against Sheetz takeout beer

Court rules against Sheetz takeout beer

	Published : Fri, 23 Feb 2007 19:29 By : Agencies Print this Story

HARRISBURG, Pa. (AP) - Pennsylvania alcohol regulators improperly licensed a restaurant located in the same building as a convenience store to sell beer for takeout purposes only, a state appeals court ruled Friday.

Commonwealth Court said a are tail dispenser' license that the Liquor Control Board issued to a Sheetz Inc. store in Altoona requires beer to be consumed on the premises. Sheetz, however, had no intention of allowing customers to drink in its stores.

'An entity that is licensed for on-premises consumption is given the additional benefit of selling beverages for off-premises consumption,' wrote Judge Robert Simpson for the majority in the 4-3 decision. He said state law 'makes the right to conduct sales for off-premises consumption secondary to the primary purpose of selling malt or brewed beverages for on-premises consumption at the eating place.'

In the dissent, Judge Renee Cohn Jubelirer said Sheetz should not be required to use the retail dispenser license to its fullest extent, just as stores that are allowed to sell beer until 2 a.m. may close earlier if they wish.

'The PLCB notes that it has never required any of its licensees to utilize their individual licenses and permits to the fullest extent, and it provides numerous examples,' she wrote.

Beer sales continued at the store early Friday, said Mike Cortez, Sheetz's vice president and general counsel.

'What I have to do is take a look at the decision to figure out what we are going to be doing from here on out,' he said. No decision about an appeal has been made, he said.

Bob Hoffman, a lawyer for the 410-member Malt Beverage Distributors Association of Pennsylvania -- which sued to challenge the license -- said the association was concerned that Sheetz was essentially operating as a beer distributor.

'It will mean that within a matter of days, when they sort it out, that Sheetz will have to stop selling beer, at least until they figure out a way to comply with what the court has required,' Hoffman said.

The court case has fueled speculation about a potential expansion of retail beer sales in the state, including proposals to allow the sale of six-packs of beer at cafes adjacent to supermarkets.

'This is all part of the battle (over) how beer's is going to be sold in Pennsylvania,' Hoffman said of the court ruling.

Cortez said it was possible that Sheetz might allow beer drinking inside the restaurant as a way to continue takeout sales.

'If the state of Pennsylvania says we have to, then we'd have to reconsider and think about what makes sense,' he said.

A PLCB spokeswoman said Friday the agency had no immediate comment.