Iron Hill's mug club runs afoul of Pennsylvania Liquor Control Board
  • A glass of beer from Iron Hill Brewery and Restaurant is seen in this file photo.

By DAN NEPHIN
Lancaster
Published Jul 10, 2012 23:19

A Pennsylvania Liquor Control Board opinion is making some mug-club members cry in their beers.

The agency recently told Iron Hill Brewery and Restaurant, which has a location on Harrisburg Pike in Lancaster city, that aspects of its mug club were illegal, prompting a review.

Iron Hill had been giving members redeemable points based on how much money they spent, including money spent on alcohol.

The brewery also filled its members' 24-ounce club mugs for the same price it charges other customers for pints.

Both are no-nos.

In its opinion for Iron Hill, the PLCB's chief counsel, Faith Diehl, wrote, "The offering of points for purchases is problematic when points are accumulated based on the purchase of beer/alcohol, regardless of whether the points are ultimately redeemed for food and non-alcoholic products only."

The PLCB also concluded that bigger pours at the same price for a normal serving amounts to an improper discount.

" … If the amount of beer given to mug club members is greater than a normal beer mug for non-members, the price for that larger amount of beer must increase proportionately," Diehl wrote.

Iron Hill, which has 10 locations in Pennsylvania, New Jersey and Delaware, is revamping the mug club to comply with PLCB regulations.

Kevin Finn, Iron Hill's president, said the company has numerous mug club members.

"I personally got about 50 emails … and all of them are very supportive and positive" of Iron Hill, Finn said.

Finn notified members of the ruling in an email earlier this month.

"Whether we agree with these decisions or not, or why after 10 years the mug club has become an issue, is not up to us to decide. What is important is finding a solution quickly and doing what's best for our most loyal customers," he wrote.

Mug club perks in one form or another are not uncommon.

Lancaster Brewing Company, The Taproom and Bube's Brewery also offer mug clubs.

Greg Keasey, co-owner of the Taproom, and Brent Eshelman, who oversees Lancaster Brewing Company's locations in Lancaster and Harrisburg, said they modeled their mug clubs after existing clubs.

"We're going to follow what the LCB mandates regarding mug clubs," Keasey said. He said the Taproom has about 150 members in its mug club.

Eshelman also said that Lancaster Brewing Company, which has about 450 members in its mug club, will comply with PLCB regulations.

People criticized the PLCB on social media sites.

A suburban Philadelphia brewery said on its Facebook page it disagreed with the opinion and was planning a petition to send to lawmakers.

"PLCB, you're ridiculous. You must be bored," one person tweeted on Twitter.

Enforcement of PLCB regulations is handled by the Pennsylvania State Police Bureau of Liquor Control Enforcement.

Maj. John Lutz, the BLCE's director, said it's possible for a violator to fly under the radar because there are about 18,000 establishments with liquor licenses.

Typically, he said, the agency learns of a violation through a complaint.

Finn said the PLCB told him someone complained about Iron Hill's mug-club policy, but he does not know the identity of the person.

Lutz said he also did not know the identify of the complainer but that the agency would not disclose that even if he did.

Complaints can come from customers, competitors and ex-employees, he said.

Lutz said establishments operating mug clubs should make sure they comply with the law.

He acknowledged that liquor code regulations can be difficult to understand, but said when an opinion is issued, as it was for Iron Hill, it usually clearly spells out the law.

dnephin@lnpnews.com

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