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Mobile Liquor Store Owner Wants ABC Stores Gone

Reported by: Local 15 News Staff
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Updated: 1/21 10:59 pm
(MOBILE, Ala.) - An Alabama lawmaker wants to do away with ABC stores in the state.

Senator Arthur Orr from Decatur says he'll propose a bill in the upcoming legislative session to privatize the retail function of the Alcoholic Beverage Control Board.
Local 15 talked to liquor store owners in Mobile who feel there's both good and bad to the proposal.

"The fundamental issue we need to address as a state is, does the state belong in the retail liquor business in the 21st century? Should we be out there selling alcohol competing with the private sector?" questioned Senator Orr.

The owner of Maddog's Party Stop says absolutely not.
David Maddox believes state run retail stores take business away from the little guys.

"They are so much cheaper. I have to buy it from the ABC at the same price you would walk in and buy it off the shelf. Then, I have to put a mark up and most people don't understand that," said Maddox.

Orr is working on a bill that would close ABC stores.
He says it could save the state around $46 million.

"I think it would be a good thing. And it would be beneficial for the local jurisdiction like the City of Mobile and county because right now when people go into ABC stores, the city and county aren't getting any taxes from that," said Maddox.

But ABC Board Administrator Mac Gipson says the current system employs hundreds of people and brings in $1.5 billion for Alabama annually.

"We've done it for the past 75 years. We've honed it to an art and probably are one of the most efficient agencies in the state. You have to be, it's a business. We operate on our own profit and we don't get a penny worth of tax money to operate on," said Gipson.

Under Orr's plan, the state would continue it's wholesale operation that distributes liquor to stores.

"It would be better if they did away with all of it. Then, we would have liquor wholesale distributors where they come in and make the deals with each individual store. It makes every store have competitive pricing," said Maddox.

The bill would also allow the state to decide how many retail stores are in each town and set up a competitive bidding process.
This doesn't sit well with local store owners.

"Now we're going to have to bid to keep our license? So if we lose it, what, do we lose our store?" Maddox questioned.

There isn't a bill filed yet for lawmakers to consider. Similar proposals died in the legislature in the 1980's.



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The views expressed here do not necessarily represent those of Local 15

know2much - 1/22/2013 11:34 AM
0 Votes
I would agree that the state makes plenty of profit on the ABC Stores both retail and wholesale as well as provides good stable jobs with benefits for hundreds for hard working Alabamians. I cannot comment on the liquor stores in the Mobile area as they may be fine upstanding businesses. However, after working for a couple of local liquor stores in the Gulf Shores and Orange Beach area these types of businesses just have no morals or ethics anymore. The markup is rather large, the employee turnover is astronomical and the wages are very low. Most of these locally run liquor stores on or near Pleasure Island are pretty much tourist traps anyway. At least the State ABC Board still maintains morals, ethics and provides a stable work environment. In my opinion the State should keep the retail side and the wholesale side especially on Pleasure Island since they both make money and provide good stable jobs with benefits!

Superluke4 - 1/22/2013 9:54 AM
0 Votes
So what about the 600 plus jobs that would be lost by closing the retail stores? How much in unemployment benefits would the state be paying them? Not to mention an increase in the unemployment rate. Also Sensor Orr says it will save the state $46 million a year, but ABC gave over $200 million to the general fund last year. And that's not counting what is given to other state agencies and programs by state law or operating cost. So please tell me how that legislation is going to help better the state??
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