Mississippi lawmakers expressed frustration Tuesday over delays in alcohol shipments from the state’s Alcohol Beverage Control warehouse. The House State Affairs Committee held a hearing to address the issue, which has impacted liquor stores, casinos, and restaurants across the state.
Committee Chair Rep. Hank Zuber, a Republican, said the delays are affecting tourism and business revenue. “This hearing is about finding a solution that is timely,” he said, emphasizing the urgency. Zuber added that the situation has left many upset and mad.
Commissioner Chris Graham of the Department of Revenue, who also chairs the National Alcohol Beverage Control Association Board, attributed the delays to software issues and warehouse construction. He explained that support for the conveyor belt system ceased in 2022, causing staff to switch to a slower system. Graham said 25 new employees have been hired to help clear the backlog, which he expects to be halved by March and fully resolved by May.
Delays have led to empty shelves and revenue losses. Some businesses reported being billed for full orders but receiving only partial shipments. Graham stated the system bills only for what is shipped, but Ann Marie Smith of Raines Cellars challenged that, citing her recent experience.
The construction of a new warehouse, expected to improve delivery times, will not be complete until next year. State Rep. Trey Lamar noted that efforts to privatize alcohol shipments failed in the Senate years ago, and the current system won’t be fully operational until 2027. Lawmakers also discussed options like will-call pickups and direct manufacturer shipments, but space constraints in the existing warehouse pose obstacles. Graham said there’s no room for additional doors to facilitate will-call pickups.
The delays have also hurt state tax collections. Graham reported January tax revenue at about $5 million, half of the typical $10 million. Industry representatives, including Larry Gregory of the Mississippi Gaming and Hospitality Association, said the situation is damaging the casino industry and its guests. Smith highlighted that the issue worsened during Valentine’s Day weekend.
Lawmakers are expected to introduce bills in the coming days to address the backlog, including potential measures to bypass ABC and allow direct shipments from manufacturers. Graham said ABC will comply with whatever legislative action is taken.
Jon Ross Myers is the executive editor and publisher of the Mississippi News Network, Mississippi's largest digital only media company. He can be reached at editor@tippahnews.com
