Alabama Alcoholic Beverage Market: Regulations, Statistics, Trends, and Wholesalers
Alabama ranks among the nation’s leaders in per capita revenue from alcohol sales while maintaining one of the lowest levels of per capita consumption. This unique dynamic reflects the state’s mandate to maximize revenue while promoting responsible consumption. In 2023, Alabama generated sales of approximately 3.6 million 9-liter cases, making it the 27th largest spirits market in the U.S. With a population of 5.1 million, including 3.7 million of legal drinking age, Alabama’s market is tightly regulated yet offers opportunities for suppliers who understand its intricacies.
One of the most distinctive features of Alabama’s alcohol regulations is its local-option law. Municipalities with 1,000 or more residents can hold referendums to legalize alcohol sales within their limits, even if they are located in dry counties. This has led to the creation of 55 “wet” cities nestled within otherwise dry counties, creating a patchwork of availability that reflects the state’s complex relationship with alcohol.
We’ve prepared a guide to the Alabama market, which covers the following topics:
- Consumption trends
- The most popular alcohol categories
- Local guidelines
If you need help establishing your presence in Alabama, provide your information below, and we’ll contact you to discuss how we can help.
Consumption Trends In Alabama
Within the state of Alabama, alcohol consumption varies throughout time, depending on the product category. Over the previous five years, the spirits segment grew at a CAGR of 5.55%, while wine and beer consumption saw decreases of -2.28% and -2.2%, respectively.
Alabama Spirits Consumption from 2019-2023 by 9-Liter Cases
5.55% CAGR
Alabama Wine Consumption from 2019-2023 by 9-Liter Cases
-2.28% CAGR
Alabama Beer Consumption from 2019-2023 by 9-Liter Cases
-2.2% CAGR
Alabama Regulatory Framework and Market Control
The Alabama Alcoholic Beverage Control Board (ABC) governs the state’s spirits retail and wholesale operations, maintaining exclusive control over the distribution and sale of alcoholic beverages.
Market Entry and Licensing
Alabama operates as a control state, with the Alabama ABC serving as both wholesaler and retailer for spirits. Suppliers must navigate specific market entry processes, including label registration, price posting, and obtaining the necessary licenses.
Label Registration: Suppliers must register labels with the Alabama ABC. Two samples of the label are required for major revisions in spirits. Label registration is also required for table wine and beer.
Price Posting: The Alabama ABC requires sixty (60) days’ notification of price changes, which may only be made four times a year, effective on February 1, May 1, August 1, and November 1. New items may be listed at any time at the Board’s discretion.
In-State Licenses: Various licenses are available for in-state operations, including Manufacturer’s Licenses for spirits, wine, and beer, each with a $500 fee. Additional requirements include Alabama Responsible Vendor Certification, Alabama Business Privilege License, and Sales and Use Tax License.
Out-of-State Licenses: Out-of-state suppliers must obtain an Importer License (License Type 210) to ship liquor, wine, or beer to licensed wholesalers within Alabama. Direct-to-consumer shipments of spirits and beer are not permitted, but wineries can obtain a Direct Wine Shipper License to ship limited quantities directly to Alabama residents.
Special Orders and Full Listings
Suppliers can enter the Alabama market through either a special order process or a full listing with the Alabama ABC.
Special Orders: An account or supplier can request special order products by completing price quotation forms or a new vendor packet. The state places a purchase order with the supplier, and the product is shipped to the state warehouse, then to a local store for purchase. All orders must be picked up by the customer or on-premises account at the designated store.
Full Listings: For regular placement in ABC stores, suppliers must submit a file containing the following:
- The completed Alabama ABC Brand/Label Approval form
- An assignment letter or formal request for approval
- COLA form or Certificate of Label Exemption
- A scanned color copy of the label
- Signed Territorial Agreements for each listed wholesale distributor
Shipping and Selling to Consumers
Beer and Spirits: Direct-to-consumer shipments of beer and spirits are prohibited in Alabama. All spirits must be sold through Alabama ABC retail stores, and beer must be distributed through licensed wholesalers.
Wine: Wineries, including out-of-state wineries, can obtain a Direct Wine Shipper License to ship up to twelve cases per year to Alabama residents. The initial application fee is $200, with an annual renewal fee of $150.
Retailers: Alabama allows licensed retailers to deliver beer and wine directly to consumers under specific conditions. Retailers must obtain a Delivery Service License, which requires a $100 application fee and a $250 annual fee. Delivery personnel must undergo training, and deliveries must be made in sealed original containers. Third-party delivery services are also permitted but must comply with state regulations.
Alabama Spirits Volume Sales By Category – 2023 Data
Spirit trends in Alabama by volume and dollar sales in 2023.
| Category | Volume Sales 9-liter cases |
|---|---|
| Straight Whiskey | 542 |
| Canadian Whisky | 248 |
| Scotch whisky | 37 |
| Irish whiskey | 29 |
| Gin | 127 |
| Vodka | 1,095 |
| Rum | 224 |
| Tequila | 405 |
| Cordials/Liqueurs | 329 |
| Cocktails | 282 |
Source: Beverage Information Group
Alabama Wine Volume Sales By Category – 2023 Data
See below for the wine trends in Alabama by volume sales in 2023.
| Category | Volume Sales 9-liter cases |
|---|---|
| Table | 2.9 million |
| Wine Coolers | 23,014 |
| Champagne & Sparkling | 117,202 |
| Dessert & Fortified | 40,523 |
| Vermouth & Aperitif | 4,535 |
Source: Beverage Information Group
Alabama Beer Volume Sales By Category – 2023 Data
See below for the Beer trends in Alabama by volume sales in 2023.
| Category | Volume Sales 9-liter cases |
|---|---|
| Craft | 4,156 |
| FMBs & Hard Seltzer | 3,446 |
| Super & Super Premium | 4,812 |
| Light | 19,852 |
| Popular | 2,016 |
| Imported | 2,138 |
Source: Beverage Information Group
The Top 10 Spirits Brands
In Arizona
- Tito’s Handmade Vodka
- Crown Royal
- High Noon Sun Sips Hard Seltzer
- Smirnoff
- Jim Beam Family
- Aristocrat Vodka
- Jose Cuervo
- Fireball
- Jack Daniel’s
- Paul Masson Brandy
The Top 10 Table Wine Brands
In Arizona
- Coming Soon!
The Top 10 Domestic Beer Brands
In Arizona
- Coming Soon!
Selling Alcohol In Alabama
Every producer, supplier, wholesaler, and retailer should understand the rules and regulations regarding the sale of alcohol in their state. You’ll find many answers to the frequently asked questions related to the sale of alcohol today. In the event that you have any other questions or concerns, please contact the Park Street Team for answers. Click here to reach out to us via email.
We are continuously adding and updating answers to the questions below. Please check back frequently for more information.
FAQs on Alabama Beer, Wine & Spirits Sales
What are the policies regarding the sale of alcohol on Sundays in Alabama?
While state-run liquor stores are indeed closed on Sundays, the hours for Sunday sales in other establishments vary by county and city.
What are the hours retailers can sell alcohol in Alabama?
The hours vary depending on the type of store. State liquor stores can sell Monday through Saturday 9 AM to 9 PM. Grocery stores and liquor stores are able to sell between Sunday and Saturday from 6 AM to 2 AM. Local regulations may vary.
Do Walmart, Target, and CVS sell alcohol in Alabama?
Yes, they start selling alcohol at Walmart in AL as early as 6 AM. Target is able to sell table wine, providing the alcohol content is less than 14% and beer can be sold providing it’s less than 6%. That said, alcohol may not be sold or served after 2 AM.
Do they sell liquor, wine, or beer in grocery stores in Alabama?
Yes, they do, but they do not sell anywhere after 2 AM.
Do they sell liquor, wine, or beer in gas stations in AL?
Yes, in Alabama, they do sell beer in gas stations. However, they only sell beer during the hours permitted and providing that it meets alcohol content restrictions.
What is the Alabama alcohol excise tax?
Wine 16.5% ABV and under – $0.45/Liter
Wine 16.6% ABV and over – Not sold in the private sector.
Sparkling Wine 16.5% ABV and under – $0.45/Liter
Art. Carb. Wine 16.5% ABV and under – $0.45/Liter
Distilled Spirits – Not sold in the private sector.
Malt Beverages – $0.05 per 12 oz. or fraction thereof
Buying Alcohol In Alabama – Hours, Locations & Taxes
If you’re a consumer looking for information on when and where you can buy alcohol in Alabama, the answer is provided below. Learn all the most frequently asked questions related to buying beer, wine, and spirits in the state of Alabama.
FAQs on Buying Beer, Wine & Liquor in Alabama
What is the alcohol tax in Alabama?
A sales tax rate of 4% applies to all alcohol purchases made in the state of Alabama.
Can you buy liquor in grocery stores in AL?
Yes, you can buy alcohol in grocery stores in Alabama, providing its table wine that contains less than 14% alcohol and/or beer containing less than 6% alcohol. It must be purchased before 2 AM.
Can you buy alcohol in gas stations in AL?
Gas stations are allowed to sell alcohol, providing it’s between designated hours.
Can you buy alcohol on Sunday in Alabama?
Yes, if the county is a county that’s made the purchasing of alcohol legal on a Sunday. The restrictions vary from county to county.
Does Alabama allow the delivery of alcohol?
As of 2023, Alabama allows home delivery of alcoholic beverages.
What times can you buy liquor, wine, or beer in Alabama?
You can purchase alcohol at the state liquor stores Monday through Saturday, 9 AM and 9 PM. Grocery stores and liquor stores sell between 6 AM and 2 AM. You can buy at on-premise locations until 2 AM. In Alabama, you cannot purchase alcohol in many counties, which are considered dry counties.
(Data Sources – portal.ct.gov, wikipedia.org)
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