Alabama closer than ever to allowing ready-to-drink spirits on grocery store shelves

Alabama may soon toast to a long-awaited change in its liquor laws: ready-to-drink cocktails like canned margaritas and vodka sodas could be available in grocery and convenience stores as early as this fall.

SB268, which would create a new category for “mixed spirit beverages” with up to 7% alcohol by volume, is gaining rare bipartisan momentum in the Alabama Legislature. The measure has been introduced multiple times in recent years, but this time, supporters say, it’s closer than ever to becoming law.

“I know that 100% of all the people in the industry [are] not bought into this, but I think we’ve gotten further than we’ve ever gotten,” said State Sen. Bobby Singleton, (D-Greensboro) the sponsor of the bill, during a recent meeting of the Senate Tourism Committee.

Under current law, any beverage containing liquor is treated the same as hard alcohol — meaning even a 5% canned cocktail is sold exclusively through state-run Alcoholic Beverage Control (ABC) stores. SB268 would carve out a new legal category for low-alcohol mixed drinks, allowing them to be distributed and sold alongside beer and wine.

If passed, the bill would allow mixed spirit beverages to be sold in stores already licensed to sell beer and wine. Restaurants, bars, and grocery chains could stock brands like High Noon or Cutwater without going through the ABC system.

The bill also lays out a regulatory framework, including new wholesaler and retailer licenses, distribution agreements, and an excise tax of 2.9 cents per ounce. Half of the tax revenue would go to the state’s General Fund; the other half would support ABC operations.

Supporters argue the change is long overdue — pointing to national trends and growing consumer demand for convenient, low-ABV cocktails.

Alabama is one of the few states that still requires spirits-based ready-to-drink products to be sold exclusively in state-run liquor stores. Industry leaders say the current system limits consumer choice and hurts local retailers.

In the past, the bill stalled over how ready-to-drink spirits would be handled under Alabama’s franchise laws, which govern the relationship between suppliers and wholesalers.

Earlier versions required suppliers to assign exclusive sales territories and sign franchise agreements with specific wholesalers — a setup that drew strong pushback from the Alabama Beverage Association for being too restrictive. The bill also lacked a clear path for soft drink or beer distributors to join the market.

The latest version still includes the franchise rule but it also creates a new license that combines beer, wine and ready-to-drink spirits. That change makes it easier for existing distributors to participate.

If the bill clears both chambers, the law would go into effect October 1.

For now, fans of canned cocktails will have to keep waiting — but for the first time in years, a change may finally be on tap.

Grace Heim is a state and political reporter for Yellowhammer News. You can follow her on X @graceeheim or email her at [email protected].