A sweeping new law set to take effect on June 1 will significantly alter how Alabama retailers sell vape and nicotine products. The legislation imposes stricter permit requirements and bans the sale of popular flavored e-cigarettes in convenience stores, effectively eliminating a key profit center for many small businesses.
Passed by the Legislature and signed by Governor Kay Ivey, Act 2025-403 establishes two new retail permits: the ABC Tobacco Permit and the ABC Specialty Retailer of Electronic Nicotine Delivery System Permit. The ABC Tobacco Permit, with an annual fee of $150, authorizes the sale of traditional tobacco products and certain electronic nicotine delivery systems that have been approved or remain under review by the FDA.
The more restrictive ABC Specialty Retailer permit, costing $1,000 annually, will be required for stores whose inventory or sales are primarily focused on vape products. These specialty retailers must limit access to customers aged 21 and older and ensure that all products meet state and federal requirements.
In addition to the new permitting structure, the law imposes strict limits on what types of vape products can be sold in convenience stores. Retailers will only be allowed to sell 34 tobacco- and mint-flavored e-cigarette products that have received FDA authorization. Fruit- and candy-flavored vape products, popular with younger users, will be banned from convenience store shelves and can only be sold in licensed specialty vape shops.
Rep. Barbara Drummond, D-Mobile, the bill’s sponsor, said the law was driven by concerns about youth vaping and the health risks associated with nicotine use. “These products are harming our young people,” Drummond said. “We’re not dealing with something that is a healthy product. This product is not a product that we should be inhaling into our lungs.”
However, for convenience store owners, the law will remove a significant source of revenue. Industry groups have warned that alternative nicotine products make up a substantial portion of convenience store sales—often accounting for 20-30 percent of profit margins. The ban on flavored products and the new permitting requirements are expected to put a strain on small retailers across the state.
The Alabama Alcoholic Beverage Control Board is tasked with enforcing the new regulations. Violations could result in fines, suspension or the revocation of retail permits. The law also requires that all vape products sold in Alabama be manufactured in the United States, adding another layer of compliance for retailers.
The legislation establishes a Tobacco Licensing and Compliance Fund to support enforcement efforts and educational campaigns targeting youth vaping. However, retailers argue that the law’s real-world impact will be felt at the cash register, where the loss of flavored vape sales will mean lost jobs and lost income.
As the June 1 effective date approaches, Alabama’s convenience store operators and specialty vape retailers are bracing for the fallout of the new law—while public health advocates say it’s a necessary step to curb nicotine addiction and protect young people from the dangers of vaping.
