Existing law makes no specific provisions regarding the retail sale, wholesale, or tax on the sale of low-alcohol by volume content beverages made from liquor. These beverages are regulated like liquor. They are not available for distribution through beer and table wine wholesalers and are only sold in ABC stores. This bill would define a new category of ready to drink mixed liquor beverages containing no more than seven percent alcohol by volume, called "mixed spirit beverages." This bill would institute a licensing structure in Alabama for mixed spirit beverages, which would require all mixed spirit beverages, other than those sold in Alabama Beverage Control Board stores, to be distributed through licensed wholesalers to licensed retailers for on-premise and off-premise consumption. This bill would provide for the levy of a privilege or excise tax on mixed spirit beverages. This bill would require suppliers of mixed spirit beverages to designate exclusive sales territories for each brand and enter into a distribution agreement with a licensed wholesaler for each sales territory. This bill would also set requirements for distribution agreements between suppliers and wholesale distributors of mixed spirit beverages for no-cause termination or nonrenewal of a distribution agreement.

Statutes affected:
Introduced: 28-3A-9