Alcohol Beverage Services

The nation's last county-run alcohol monopoly

FY2026 budget: $77.9M

Overview

Montgomery County's Alcohol Beverage Services (ABS) is the most unusual county government operation in the United States. Established in 1933 after Prohibition's repeal, it is the only county in America that operates both a wholesale monopoly over all beer, wine, and spirits distribution (serving ~1,100 licensees) and a retail monopoly on off-premises spirits sales through 27 county-owned stores. No peer county runs anything comparable.

Budget and revenue

The department employs approximately 467 people (350 full-time, 117 part-time) with an FY2026 operating budget of $77.9 million. It generates roughly $270–$304 million in annual revenue and historically transferred $30–$40 million to the county's General Fund. However, the FY2026 General Fund transfer is projected to plummet to just $19.6 million — down from $31.3 million in FY2025, a 37% decline that county councilmembers publicly questioned in March 2026. This revenue represents just 0.4% of the $7.6 billion county budget.

Scandals and OIG findings

NBC4 Washington's I-Team documented employees skimming cases of beer and selling them on the black market. A 2015 exposé found the warehouse tracked inventory using sticky notes. OIG audits in 2014, 2019, and 2022 found persistent inventory management deficiencies — cycle counts were not independent, beer records were retained for only one week, items were moved without updating records, and access controls were inadequate. The OIG's 2022 follow-up concluded "more work needed."

Oak Barrel & Vine: competing with private retailers

A September 2025 store opening in Westfield Wheaton mall placed a county-owned wine and beer store directly across the hall from Choice Wine & Beer, a private shop. Owner Nick Gardner reported sales down 11–13% and wine sales down 23% since the county store opened. Private retailers must purchase their wholesale products from the county, creating a structural conflict where the county is simultaneously supplier and competitor.