Alabama Senate Bill SB268

Alabama 2025 Regular Session

• Introduced: 3/20/25
• Refer: 3/20/25
• Report Pass: 4/16/25

Caption

Mixed spirit beverages, providing for distribution, retail sale, and tax

Impact

The bill includes measures for regulatory oversight and the establishment of a three-tier distribution system—suppliers, wholesalers, and retailers. It mandates that manufacturers and suppliers enter into exclusive sales territory agreements with wholesalers, which could significantly alter the landscape of alcohol sales in Alabama. Additionally, it introduces an excise tax based on sales volume, which is intended to fund regulatory activities. This tax, levied at 2.9 cents per ounce, will be added to the sales price and collected from purchasers at retail.

Summary

SB268 establishes a new category of alcoholic beverages in Alabama called 'mixed spirit beverages,' which are defined as ready-to-drink products containing no more than seven percent alcohol by volume. Under existing law, products with low alcohol content are treated similarly to liquor, often sold at designated ABC stores. This bill seeks to create a separate licensing and distribution structure for mixed spirit beverages, allowing them to be handled differently from traditional liquor and facilitating broader access in retail markets.

Contention

Although the bill's intention is to streamline the sale of mixed spirit beverages, it could face contention regarding its potential effects on local businesses and traditional distribution channels. Critics may argue that the exclusive sales territory requirements could limit competition among wholesalers, while proponents assert that it will reduce illegal distribution issues and ensure quality control. The establishment of an excise tax may also be contentious, as stakeholders debate the appropriate level of taxation in balance with consumer access and market fairness.