SB268 Alabama 2025 Session

Summary

Primary Sponsor

Bobby D. SingletonSenator

Democrat

Session

2025 Regular Session

Title

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

Summary

SB268 creates a new mixed spirit beverages category (max 7% ABV) and sets up a state licensing and tax system to regulate its distribution, sale, and taxation in Alabama.

What This Bill Does

It defines mixed spirit beverages and requires their distribution through licensed wholesalers to licensed retailers for on- and off-premises consumption, except for products sold in state liquor stores. It imposes a new excise/privilege tax on these beverages and creates licenses for manufacturers, importers, wholesalers, and retailers, along with related fees, background checks, and reporting. It also authorizes the ABC Board to act as a wholesaler for state liquor stores and creates exclusive sales territories and distribution agreements with no-cause termination provisions, while preserving the three-tier regulatory system. Local governments may levy administrative fees, and the law lays out rules for dry counties and municipalities to manage licensing and sale of mixed spirit beverages.

Who It Affects

• Manufacturers, importers, wholesalers, and retailers of mixed spirit beverages will need new licenses, must establish exclusive distribution agreements with designated wholesalers for each brand/territory, pay new license fees, undergo background checks, and follow new reporting and packaging rules.
• Counties, municipalities, and Alabama residents will experience new tax revenue from mixed spirit beverages, potential local admin fees, and regulations related to where and how these beverages can be sold, including restrictions in dry areas and expanded licensing for existing retailers.

Key Provisions

• Defines mixed spirit beverages as single-serve cans or containers up to 16 ounces with up to 7% alcohol by volume.
• Creates new licenses (wholesaler, retailer with limited expanded license for mixed spirit beverages, manufacturer, importer, etc.) and associated fees; requires background checks, fingerprints, and disclosure of criminal history for applicants.
• Requires all mixed spirit beverages (except those sold in state liquor stores) to be distributed through licensed wholesalers to licensed retailers for on- and off-premises consumption; the ABC Board may act as a wholesaler to supply state liquor stores.
• Imposes a tax of 0.029 dollars per ounce on mixed spirit beverages, collected by wholesalers and remitted to the state; the revenue is split with half going to the State General Fund and half to the ABC Board for regulatory use, with distributions to counties/municipalities per law.
• Establishes exclusive sales territories for brands and mandatory distribution agreements with wholesalers; prohibits termination/nonrenewal without certain conditions and outlines a fair market value process if a supplier ends a contract.
• Creates Chapter 8B to preserve the three-tier system, regulate competition, and enhance state oversight of mixed spirit beverages.
• Provides for a limited mixed spirit beverage expanded retail license allowing certain existing license holders (table wine, beer, lounge/club/restaurant licenses, etc.) to sell mixed spirit beverages under defined terms; details license fees, premises rules, and the possibility for the board to act as a wholesaler for ABC stores.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Alcoholic Beverages & Tobacco