A hybrid continuous fermentation system and related process for fermenting sugars to produce alcohol containing liquors. The system includes a fermentor arranged with a packed bed region and a fluidized bed region. A yeast bed is retained in the packed bed region using a retention matrix and flocculation. A sugar supply is directed through the yeast bed with sufficient dwell time for satisfactory sugar conversion. The fluidized bed region is arranged to allow fermented product to pass through the fermentor while allowing yeast cell growth and retention. A nutrient may be added to the fermentor to aid in yeast flocculation. The fermentor is sized and shaped to allow sufficient dwell time of the sugar supply in the packed bed region and in the fluidized bed region to maximize sugar conversion to ethanol by fermentation.