MONTGOMERY, Ala. — Sen. Bobby Singleton, D-Greensboro, reintroduced a bill recently that would permit the sale of ready-to-drink mixed spirits wherever beer and wine are sold, though this time, with a compromise.
Senate Bill 259 would allow for RTD spirits with an alcohol by volume of up to 8% to be sold in grocery stores, convenience stores, or wherever else beer and wine are sold. The bill would expand the availability of such drinks from less than 1,000 locations to more than 4,600 statewide.
Singleton first launched the effort to expand the availability of RTD spirits last year with Senate Bill 321, which would have permitted RTD spirits with an alcohol by volume of up to 12.5% to be sold alongside beer and wine.
The bill never became law, however, and a task force was later established to study the idea of expanding the accessibility of RTD spirits. That task force, which held several meetings in late 2023 through early 2024, ultimately recommended against expanding the accessibility of RTD spirits.
In its final report, task force members cited the high ABV cap of RTD spirits as one of the primary reasons in its decision, noting that while 12.5% was lower than the state’s 12.9% ABV cap for beer, the comparatively sweet taste of such drinks made over-consumption and abuse more likely.
The Alabama Alcoholic Beverage Control Board was among those who spoke out against expanding the availability of RTD spirits under Singleton’s proposal, citing the 12.9% ABV cap as one of their primary concerns. Neil Graff, ABC Board COO, had said the agency would be more comfortable with a 7% ABV cap for RTD spirits.
Advocates for Singleton’s latest version of the bill hope it provides a compromise that would be agreeable to the ABC Board.
Pat McWhorter, owner of the lobbying firm The McWhorter Group, which often advocates on behalf of the retail industry, told Alabama Daily News Monday that he was hopeful the ABC Board would be satisfied with the reduced ABV cap for RTD spirits included in the bill.
“I’m hoping that ABC is going to agree to that compromise, I mean that’s a pretty big drop,” McWhorter said. “The fact is, maybe even 95% of all the (RTD spirit) products that are selling right now are under that 8% mark.”
Another change in the bill was the amount of tax imposed on RTD spirits, which was reduced from $.98 per 12 ounces in last year’s version of the bill, to $.68 in its latest form. That change, said Bart Fletcher, president of the trade association Petroleum & Convenience Marketers of Alabama, would help keep Alabama’s RTD spirit market competitive with neighboring states.
“It’s still significantly higher than the tax rates say on beer, which is $.05 per 12 ounces, so to go from $.05 per 12 ounces to $.68 is still a significant jump, but not quite as high as in the original proposal,” Fletcher told ADN on Monday.
The bill specifies the ABC board can buy RTD spirits directly from manufacturers for its stores. But private retailers would have to go through wholesalers. The bill requires manufacturers of RTD spirits to designate geographic areas as “sales territories,” and to enter into exclusive franchise agreements with a licensed wholesaler for each sales territory.
“As potential retailers of the product, we think it’s a good bill, I think it addresses several of the concerns that were raised by the ABC Board; it does lower the ABV, which was one of their primary concerns,” Fletcher said.
“This bill does allow the ABC Board to buy directly from the manufacturer for product that will go into the ABC retail locations; that was something that was important to them.”
ABC Board Administrator Curtis Stewart is expected to meet with representatives of the retail industry regarding Singleton’s bill on Wednesday to discuss its viability. Until then, the bill’s advocates remain hopeful that its compromises are sufficient enough to satisfy its initial critics.
“As potential retailers of the product, we think it’s a good bill, I think it addresses several of the concerns that were raised by the ABC Board,” Fletcher said.
“I think that Sen. Singleton has done an excellent job of drafting a bill that comes as close to a fair and equitable compromise as possible and will provide the consumer with the ability to purchase an extremely popular product in more numerous and convenient locations, so I think it’s a win-win.”