Monday, March 23, 2026

ABC's Warehouse Woes Cost State Nearly $8 Million

The warehouse woes at ABC costs the state of Mississippi millions in lost tax revenue after ABC's distribution system crashed in January.  

Ruan Transport manages the Gluckstadt warehouse for ABC.  The company shut the warehouse down for a week in early January to take inventory.  With the warehouse closed, Ruan replaced the software and conveyor belt systems.  The software was not tested and did not communicate with ABC's MARS software.  Ruan replaced the conveyor system with a pick a pallet system.  The result was a total meltdown as shipping times skyrocketed from 48 hours to nearly a month as Ruan shipped less than 50% of cases ordered for a month, crippling casinos, restaurants, and package store owners alike. 

Posted below are the percentages of the cases shipped in 2026 compared to cases shipped in 2025. 

Week 1: 51%
Week 2: 34%
Week 3: 42%
Week 4: 34%
Week 5: 60%
Week 6: 80%
Week 7: 120%
Week 8: 125%

JJ obtained ABC's collections from December 2024 to February 2025 and December 2025 to February 2026 through a public records request. 



ABC collected $20.4 million in January and February 2025.  However, ABC's revenue fell off the cliff thanks to its warehouse woes.  Revenue plummeted $7.6 million to $12.8 million for the same period in 2026.  



January 2026 killed ABC's revenue.  The Division collected $11,269,693 in January 2025 but only $4,601,160 in January 2026, a difference of $6,668,533.  Shipments ran at 30-50% of normal inventory, crippling ABC.  

ABC collections improved in February.  The agency collected $9,161,325 in February 2025 and $8,201,424 in February 2026, a difference of only $959,901.  



Ironically, ABC collected more in December 2025 ( $12,555,508) than in December 2024 ( $11,263,693).  

Kingfish note: Hopefully ABC will make up the lost tax revenue as the backlog is erased. 


Posted by Kingfish at 9:19 AM

9 comments:

Anonymous said...

Abolish ABC. Plain and simple.

March 23, 2026 at 9:20 AM
Anonymous said...

@9:20am - It was as a private company that fkd this all up. Yeah, let’s abolish and privatize it lol

March 23, 2026 at 9:25 AM
Anonymous said...

Privitize it. Just another example of something that should be private-ran instead of government-ran.

March 23, 2026 at 9:30 AM
Anonymous said...

Can you really recoup that lost revenue?? Those sales, and most likely reorders, are now lost in time. Kinda like "catching up on sleep". Just doesn't happen. And because of that, those lost monies should be deducted from the contractor. But we're not smart enough to have something like that in the contract.

March 23, 2026 at 9:31 AM
Anonymous said...

What's the difference between a Baptist and a Methodist? A Methodist will say hello to you at the liquor store.

March 23, 2026 at 9:35 AM
Anonymous said...

Fire Chris Graham. It should have been done weeks ago.

March 23, 2026 at 9:35 AM
Anonymous said...

@925 - who said anything about privatizing it? Do like Louisiana and just get rid of the middle man - let the stores order from whoever they want, or let the many distributors we have in this state..you know..distribute?

March 23, 2026 at 9:41 AM
Anonymous said...

Obviously Ruan should eat these millions.

March 23, 2026 at 10:00 AM
Anonymous said...

@9:41. Exactly. It's very simple.

March 23, 2026 at 10:04 AM

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