Committee holds public hearing on bill to allow mixed-spirit "ready-to-drink" beverages in groceries and convenience stores

Senator Singleton opened discussion of SB 268, a contentious measure to permit sale of mixed‑spirit ready‑to‑drink beverages (RTDs) in grocery and convenience outlets under a new licensing framework. He said sponsors were pursuing a "hybrid model" intended to balance franchise protections for distributors with broader retail access.

The Alabama Alcoholic Beverage Control (ABC) representative, Mr. Stewart, told the committee he was "neutral on the bill the way it's written" and described multiple changes in the substitute that addressed prior ABC concerns, including setting an alcohol-by-volume threshold at 7 percent. Stewart said ABC sold 284,000 cases of relevant products in the 12 months measured and noted the effective tax rate under current ABC wholesale practice is about 98¢ per unit, while the bill's proposed tax would be 35¢ — a reduction that would require greater sales volume to produce similar revenues.

Public testimony was extensive and divided along business lines. Grocery representatives — including Andrew Versiglio, who said he represents Piggly Wiggly stores — urged allowing grocery sales and described in-store controls such as placing RTDs in the beer department and using point‑of‑sale ID prompts. Versiglio told the committee grocery stores are experienced, licensed ABC vendors and can follow ABC rules.

Convenience-store representatives including Wayne Prescott urged inclusion of convenience outlets under the bill, saying current draft language would exclude them and harm customer access. Distributors and package-store representatives expressed concern about franchise protections; Wade Weaver and Brandon Owens warned that many small package stores and distributors could be harmed if franchise protections were omitted or if suppliers could arbitrarily reassign brands.

Several industry witnesses said they had reached compromises on franchise language and other technical points in the substitute and urged the committee to continue negotiations. Virginia Bannister, speaking for the Alabama Beverage Association, said the industry supported SB 268 subject to a closer review of the substitute received that morning.

After the public hearing, committee members and stakeholders agreed to continue work on the substitute. No roll-call vote on final passage occurred in committee that day; sponsors said they hoped to have an up‑or‑down floor vote at a later date once technical language and franchise provisions were resolved.