Late Alcohol Deliveries Over the Past Two Years: Impacts and Solutions
Alcohol deliveries in North Carolina have faced significant delays over the past two years, with some shipments arriving more than four hours late. This issue has raised concerns among businesses and officials, particularly those in the hospitality sector.
The Alcoholic Beverage Control (ABC) Commission, along with LB&B Associates—which handles inventory management and deliveries for the commission—failed to meet delivery time targets in both fiscal years 2024 and 2025, according to a recent state audit. The findings highlight systemic challenges that could impact local businesses reliant on timely alcohol shipments.
Allan Thomas, president and CEO of the North Carolina Restaurant and Lodging Association, emphasized the importance of addressing these issues. He stated that even minor disruptions in the ABC distribution system can significantly affect restaurants and bars, which often operate on tight margins and require precise inventory planning.
“From our perspective, the focus should be less on individual metrics and more on modernizing the system to better support the growing hospitality industry,” Thomas said. “This includes improving logistics reliability, increasing flexibility for permittees, and ensuring the system can scale with demand.”
The audit outlined several recommendations to address the root causes of the delays. These include implementing a fleet maintenance schedule and developing emergency plans for severe weather events. Mechanical issues and inclement weather were identified as two of the primary contributors to late deliveries.
A contract between the ABC Commission and LB&B set specific goals for the past two fiscal years. In FY 2024, deliveries were expected to arrive within 30 minutes of the scheduled time 99% of the time. For FY 2025, the target was 98% of deliveries arriving within an hour of their scheduled time.
Data from the audit shows that 305 out of 7,119 deliveries in FY 2024 were more than 30 minutes late, representing 4% of total deliveries. In FY 2025, 200 out of 7,041 deliveries were more than an hour late, or 3%. On average, LB&B’s on-time deliveries were 96.4% for the two fiscal years.
Delays can cause disruptions for local ABC boards, such as adjusting staffing at stores. They can also lead to popular products being out of stock, which may erode customer trust. It is important to note that the data only includes deliveries to local ABC boards and stores, not directly to restaurants or bars.
Solutions suggested
The audit identified mechanical issues, staffing shortages, and severe weather events—including Hurricane Helene in September 2024—as the most common causes of late deliveries. To address these issues, the audit recommended that the ABC Commission work with LB&B to create a fleet maintenance schedule and develop emergency plans for severe weather using alternative routes.
It also suggested improving specific routes that frequently experience delays. Data showed that Pitt County and Guilford County had the highest percentages of late deliveries, with 9% and 8% respectively.
LB&B acknowledged during a meeting in FY 2024 that it could use temporary agencies to address driver shortages. The company also met three of the four additional goals outlined in the contract: accurate invoicing, order accuracy, and submitting safety reports.
However, LB&B did not meet the goal of shipping a minimum of 165,000 cases per week in the third quarter of FY 2025. It achieved this target in seven out of eight quarters over the two fiscal years.
The audit noted a seasonal pattern where customer demand for alcohol decreases after the holiday season, leading to reduced sales. While this decline is expected, the report emphasized the need to adjust logistics planning and staffing to match seasonal changes in demand.
The Office of the State Auditor conducts the performance report.
