Alabama took another step toward allowing ready-to-drink cocktails on grocery and convenience store shelves Wednesday, as the Senate Tourism Committee advanced a bill establishing a framework for their sale and distribution.
SB268, sponsored by State Sen. Bobby Singleton (D-Greensboro) received a favorable report following brief discussion and the adoption of a small amendment. The bill defines a new category of “mixed spirit beverages” — single-serve cocktails containing no more than 7% alcohol by volume — and would allow them to be sold outside ABC stores through a newly created licensing structure.
The adopted amendment changed the taxation rate on mixed spirit beverages to 3.5 cents per ounce, which amounts to approximately 42 cents for a standard 12-ounce can.
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Under the bill, suppliers would be required to designate exclusive sales territories and enter into distribution agreements with licensed wholesalers. A new excise tax would be levied on RTD sales, split between the state’s general fund and the Alcoholic Beverage Control (ABC) Board for regulatory and enforcement purposes.
State Sen. Rodger Smitherman (D-Birmingham) raised concerns about potential revenue impacts to the ABC Board. “This, in essence, is going to diminish their ability to provide that level of revenue for the state,” one senator said. “Now I realize… it’s speculative until we see the performance of what takes place.”
Despite reservations, Smitherman added that he was “taking a chance” on the legislation and its impacts on revenue.
The bill now heads to the full Senate for consideration. If passed into law, it would mark a significant shift in Alabama’s alcohol sales policy, opening the door for canned cocktails and similar products to be sold alongside beer and wine in retail stores beginning October 1, 2025.
Grace Heim is a state and political reporter for Yellowhammer News. You can follow her on X @graceeheim or email her at [email protected].
