Mississippi moving forward with a new Mississippi Alcohol Beverage Control distribution center

JACKSON, Miss. – The State of Mississippi is building a new Alcohol Beverage Control (ABC) Distribution Center using $95 million in state bonds.

Last Tuesday, officials announced that the Mississippi Department of Revenue (DOR) and the Department of Finance and Administration (DFA) are now accepting Requests for Proposals (RFP) for the design and construction of this new facility.

Consequently, proposals must be submitted by Thursday, July 11, 2024, at 2:00 p.m.

The current warehouse, established in 1983 in Gluckstadt, needs modernization. Therefore, officials say a larger, more efficient warehouse is necessary to store inventory, increase efficiency, and improve distribution.

To help pay for the new facility, lawmakers imposed a bailment fee for product storage two years ago. Furthermore, this fee increased this year from $1.00 per case to $1.50. This fee is in addition to other state taxes and fees on liquor and wine sales.

The RFP specifies that the $95 million total should cover all planning and construction costs, including commissioning, surveys, land acquisition, furnishing, equipping, IT, and contingency. Importantly, the new facility must be built within 50 miles of the State Capitol Building and meet demand for the next 25 years.

State controlled Alcohol

Mississippi is one of 17 states that directly control alcohol sales and distribution. The state monopolizes the importation and distribution of any distilled spirit or wine product containing more than 5% alcohol by weight. Consequently, licensed package retailers must buy liquor and wine directly from the state.

Currently, ABC distributes over 3.5 million cases of spirits and wines annually from its 211,000-square-foot warehouse. It serves over 650 off-premise accounts and 1,800 on-premise accounts, offering over 3,800 stocked items and 14,400 special order items.

The state aims to finalize the construction contract by August 15. They plan to start the first phase of construction on or before February 15, 2025, and complete it by August 15, 2026.