The flow of wine and spirits from the Mississippi Alcohol and Beverage Control warehouse to restaurants, bars, casinos and package stores is better since shipping problems began earlier this year, but there’s still room for improvement, according to industry members.
“It’s improving somewhat from what I’m hearing but not back to where it needs to be,” said Pat Fontaine, executive director of the Mississippi Hospitality and Restaurant Association.
The shelves at Madison Cellars in Madison still lack some lower- and mid-priced wine and liquor, but customers know about the backlog and have accepted that’s the way it is for now, said Richie Peaster, one of the owners of the store.
“I think it’s going to take some time to work it out,” he said.
Earlier this year, new software that didn’t work as expected, a broken conveyor system that was not repaired and changes in the delivery system that require warehouse employees to handpick orders caused delays in getting products from the warehouse to package stores, casinos and restaurants.
Chris Graham, commissioner at the Department of Revenue, said during a House State Affairs Committee meeting on Feb. 17 that it could take until May to get all the back orders filled, even with additional employees hired to work at the warehouse in Gluckstadt
By law, liquor stores, restaurants and casinos in the state are required to purchase their inventory through the Alcoholic Beverage Control Division of the Department of Revenue, which means it’s illegal for owners to cross over into neighboring states and buy what they need. Mississippi is a “control state,” meaning the state government acts as the sole wholesaler for wine and spirits.
Tina Richardson, spokesperson for the Department of Revenue, provided this statement about the situation on March 13:
“We have made significant improvements, and all technical issues have been resolved. The ABC warehouse continues to be in full operation six days a week. Retailers are continuing to place orders, and we continue to make the delivery process more efficient. We shipped over 85,000 cases for each of the last two weeks compared to 60,000 cases weekly during this time period last year.
“We have been working closely with permittees including liquor stores, casinos and restaurants to assist in any way we can while ensuring a continued smoother delivery process.
“Updates are sent to permittees weekly via their online TAP accounts.”
During the House State Affairs Committee meeting, legislators suggested ideas to get product moving, one of which was allowing wineries and distilleries to direct ship their products to the holders of liquor licenses/permits for a period of time.
Senate Bill 2838 would amend state law to include provisions allowing licensed liquor retailers to purchase directly from manufacturers.
As it stands, the bill is set to go to a conference committee, a mechanism typically used to negotiate a compromise.
Sen. Walter Michel (District 25-Hinds and Madison counties) doubts all the details to provide direct shipping to licensed liquor permit holders could be worked out before the backlog of orders is filled and the warehouse operates as it should.
Michel, who wrote a bill that passed in 2025 that allows a winery with a permit from the Department of Revenue to direct ship up to 12 cases of specialty wine per year to a resident, said he’s learning that many wineries don’t know the bill passed even though it’s been in effect for nine months.
The shipping problems have meant a loss of sales and profits for restaurants, bars, casinos and package stores, Fontaine said.
Construction is expected to be completed on the new ABC distribution center in Canton later this year. It will have room to store twice the inventory of the existing warehouse.
Peaster hopes the transition to the new warehouse is scheduled after the Christmas holidays because sales in November and December are typically among a store’s highest of the year, and he doesn’t want anything to interfere with that.
“This has been missed opportunity for sales,” he said of the current situation. “You miss it and it’s not coming back. We’re certainly hoping for a good holiday season.”
