Commissioner of Revenue Chris Graham, Chair of the National Alcohol Beverage Control Association Board of Directors, addressed members of the House State Affairs Committee during a hearing held Tuesday about the ongoing delays in alcohol deliveries through ABC's warehouse. (Photo by Jeremy Pittari | Magnolia Tribune)
- Some of the options proposed by House members include allowing businesses to pick up orders via will-call or temporarily allowing direct shipments from manufacturers.
Ongoing alcohol shipment delays being experienced by Mississippi’s businesses from the state’s Alcohol Beverage Control warehouse prompted the House State Affairs Committee to hold a hearing on the matter Tuesday afternoon.
Committee chair State Rep. Hank Zuber (R) began the meeting by expressing the frustration being shared with lawmakers from across the state.
“This hearing is about getting to the bottom of the problem, this hearing is about finding a solution, this hearing is about finding a solution that is timely,” Zuber said.
He added that the lack of timely shipments are affecting not only the state’s liquor store owners and casinos but also the tourists that come to Mississippi.
“And I think I can speak on behalf of the whole committee, we’re not just frustrated,” Zuber said, slamming his hands on the desk before saying, “We’re upset and mad.”
During the hearing, members heard from Commissioner Chris Graham of the Department of Revenue, who is also the Chair of the National Alcohol Beverage Control Association Board of Directors. He attributed the shipping delays to a combination of issues with conveyor belt software and the construction of a new warehouse.
Graham cited the 2022 decision by the Legislature to build a new warehouse. He said the company that was being used to provide software support for the current conveyor belt system has ceased that support, resulting in the warehouse staff switching to a slower pick and pallet system. The result is an ongoing backlog of orders that is just now starting to be resolved.
Graham said that 25 additional employees who are familiar with the pick and pallet system were hired to join and train existing staff. He said the ABC staff is working 6 days a week filling orders, and then working on Sundays for “replenishment.”
He hopes the back log will be cut in half by March, with the remainder of the backlog expected to be completed into May.
“It will take time to get out of the backlog,” Graham told the disgruntled lawmakers.
These delays in receiving orders have resulted in empty shelves at liquor stores as well as a related loss of revenue for restaurants and casinos. Not only are orders not being received in a timely fashion, there are also claims that some orders are not being fully filled but the businesses are still billed for the full order.
In response to those claims, Graham said the system is set up so that only what is shipped is billed.
However, Ann Marie Smith with Raines Cellars, questioned that assertion, stating that her business was recently billed for a full order but only received a portion of it.
Ann Marie Smith with Raines Cellars, describes to the House’s State Affairs Committee how her company has been billed for full shipments of alcohol despite only receiving partial shipments from the state’s ABC. (Photo by Jeremy Pittari | Magnolia Tribune)
Another issue is the construction of the new ABC warehouse, which will provide additional space and systems for more timely deliveries that is not expected to be completed until sometime next year.
State Rep. Trey Lamar (R) said the House attempted to transition from the state operated ABC to independent shipments years ago, but that effort failed in the Senate. Had such a bill passed, advocates say Mississippi would have privatized the system which would have likely placed multiple warehouses across the state by now.
“Now we’re sitting in a situation in 2026 where we’ve got businesses that are on hold and we are telling them to basically we’ll get you caught up over the next few months, but really not until the new warehouse becomes operational sometime in 2027,” Lamar said.
When asked by committee members if ABC can set up a will-call system for filling orders, or allowing businesses to pick up their orders, Graham said there are not enough bay doors or space within the warehouse to accommodate that option.
“I got some guys who can make a door,” State Rep. Kevin Horan (R) said in response.
Graham followed by saying there is no room to make a new door in the existing warehouse.
The delays are also affecting the amount of tax revenue the state is collecting in alcohol sales. Commissioner Graham said that typical tax collections of the products for the month of January averages near $10 million, funding that goes into the general fund. This year in January, the total collected was $5 million.
Larry Gregory, Executive Director of the Mississippi Gaming and Hospitality Association, said the situation is negatively affecting the casino industry and their guests.
“Believe it or not, some of the people who visit our casinos drink,” Gregory stated. “They are amazed at times in the last few weeks when we say, ‘Hey, we don’t have anything for you.”
Smith added that the issue has especially affected businesses during the recent Valentines Day weekend. She, too, called for the ABC to offer will-call as a method to catch up with backorders.
While Graham said ABC is statutorily bound to fill orders on a first come, first serve basis, State Rep. Stacey Wilkes (R) suggested ABC try to fill smaller orders that have not been filled in weeks, or months, first in the near term to ensure smaller businesses can stay afloat.
Andy Graf, owner of LaVino Wine and Spirits in Tupelo, said such a move would only exacerbate the issue, adding that his business regularly helps local competitors by selling extra product at a small markup when they need to fill stock.
Another suggestion proposed by lawmakers included temporarily bypassing ABC and allowing direct shipments from manufacturers to liquor stores, restaurants and businesses, an option Zuber said the committee will consider.
Graham said ABC will do whatever the Legislature decides to alleviate the problem.
Bills to address the issue are expected in the days ahead.
