House approves new category for mixed‑spirit beverages; debate centers on taxation and distribution controls

The Alabama House on April 22 adopted legislation defining and regulating “mixed spirit beverages” — distilled spirit products sold in ready‑to‑drink packaging — and set parameters for labeling, alcohol-by-volume caps, and retail placement rules.

Sponsor Representative Lipscomb told the chamber the bill fills a statutory gap that previously prevented certain distilled ready‑to‑drink products from regulated distribution. “This bill provides for the definition, creates a cap for the ABV, and provides for its regulated distribution,” Lipscomb said.

Representative Pringle raised multiple on‑floor enforcement and fiscal questions, noting the change shifts products from malt/fermented categories to distilled‑spirit categories for retail sale and affects how state tax stamps and ABC warehouse procedures will apply. “We are fundamentally changing from malt alcohol, fermented alcohol in gas stations and grocery stores. This changes it to distilled spirits,” Pringle said, asking how distribution will be controlled and how taxation will be collected.

Members adopted a committee substitute that added technical clarifications and prohibited labels that appeal to minors; the substitute directed that mixed‑spirit beverages be separated with clear signage in small stores and included a municipality business‑license preservation amendment to allow local governments to continue licensing retailers.

The bill passed final passage on a recorded vote (68–25). Supporters argued the measure brings product regulation in line with marketplace changes while including guardrails for labeling and retail placement. Several members urged continued oversight to ensure proper tax collection and distribution oversight by the Alcoholic Beverage Control authority and local licensing bodies.