‘No Solution From the Senate’: Severe Alcohol Shortage in Mississippi Continues After Bill Fails

A liquor store is illuminated against the dusk sky Oct. 9, 2020, in Cleveland, Miss. (AP Photo/Wong Maye-E)

A statewide alcohol shortage in Mississippi is continuing after lawmakers failed to pass a proposed emergency measure that would have allowed businesses to bypass the state’s distribution system, Mississippi Today reported Tuesday.

As of March 29, the backlog at the state’s Alcoholic Beverage Control warehouse stood at about 170,000 cases, according to the Mississippi Department of Revenue. While shipments have increased in recent weeks, bars, restaurants and package stores across the state are still facing supply gaps.

The stalled legislation, Senate Bill 2838, would have temporarily allowed licensed businesses to purchase alcohol directly from distributors nationwide. Under current law, all liquor and most wine must pass through the state-run ABC warehouse.

The shortage has renewed debate over whether Mississippi should privatize alcohol distribution. The state collects about $120 million annually in alcohol-related taxes and has authorized $95 million in borrowing to build a new warehouse expected to open in 2027, Mississippi Today reported.

The supply disruption began in January after the warehouse, operated by contractor Ruan Transportation, implemented new software that did not integrate with its conveyor system, according to Mississippi Today. The system was removed and replaced with forklift-based loading, slowing fulfillment and contributing to a backlog that reached about 200,000 cases.

At a Feb. 17 House State Affairs meeting, Department of Revenue Commissioner Chris Graham told lawmakers the warehouse was working to reduce delays and expected the backlog to be cut in half by the end of March, according to Mississippi Today.

Some lawmakers say the situation remains unresolved. House State Affairs Chairman Hank Zuber said he recently visited restaurants that had run out of key products.

“We have no solution from the Senate,” Zuber said, per Mississippi Today.

At least four Mississippi businesses have filed lawsuits against the warehouse operator, alleging breach of contract and financial harm tied to the delays, Mississippi Today reported.

Not all industry members supported the proposed workaround. Some package store owners told Mississippi Today that direct purchasing would increase costs and require infrastructure that does not currently exist.

The Mississippi Department of Revenue did not respond to a request for comment, according to the report.