The alcohol beverage industry experienced a transformative year, marked by notable shifts in consumer behavior, innovative product launches, and regulatory changes. During a recent webinar, McDermott’s Alcohol Group provided a retrospective on the pivotal moments of 2024 that impacted the industry, a preview of what’s to come in 2025, and insights into how your company
Alcohol Law Advisor
Regulatory and Distribution Law Updates for the Alcohol Industry
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An End-of-Year Review of TTB Tax Audits and Enforcement
We have updated and republished this March 2024 blog post for a year-end summary. The Alcohol and Tobacco Tax and Trade Bureau’s (TTB) Office of Field Operations is responsible for ensuring industry members comply with the Federal Alcohol Administration Act, the Internal Revenue Code, and all related regulations. It is divided into three groups: the…
The Value of Data and Artificial Intelligence in the Alcohol Industry
Members in the ever-evolving alcohol industry are leveraging data and artificial intelligence (AI) to drive innovation, enhance customer experiences, and optimize operations, all in an effort to increase efficiency and profitability in the market. There are several ways AI is being used to transform this industry: Marketing and Insights Data is highly valuable and can…
Navigating the Buzz: How State Agencies Are Addressing Confusion Around Hemp and Low-Dose THC Beverages
Hemp and low-dose delta-9 tetrahydrocannabinol (THC) beverages continue to flood the marketplace. Depending on the state, these products can be purchased in liquor stores, gas stations, grocery stores, bars, restaurants, and/or online. Despite their rise in popularity and presumed legality under the 2018 Farm Bill, some state agencies have recently made headlines with decisions to ban…
Contract Manufacturing Versus an Alternating Proprietorship: What Is the Difference?
We frequently receive questions about the differences between contract brewing and alternating proprietorships, as well as questions concerning the key details the Alcohol and Tobacco Tax and Trade Bureau (TTB) and other regulators will be looking for in either approving the proposed structure or, more importantly, during a company audit. Here we discuss the primary…
Seasonal Considerations for Packaging and Selling Alcoholic Beverages
The final quarter of the year is the alcohol industry’s busiest period, accounting for approximately 70% of annual business. Many holiday-themed seasonal products are beginning to make their way to market, and it is important to remember that these products may have additional regulatory considerations and hurdles. The Alcohol and Tobacco Tax and Trade Bureau…
Maine Updates Ownership Disclosure Requirements
On August 9, 2024, the new Public Law 2023, ch. 633 (L.D. 2069) from Maine’s Bureau of Alcoholic Beverages and Lottery Operations (BABLO) formally went into effect, bringing an end to the previous burdensome “entire ownership” disclosure requirement that disrupted the industry in 2023. This legislation establishes new ownership disclosure requirement related to alcohol licensing…
Pennsylvania Expands Access to Ready-to-Drink Cocktails
On July 17, 2024, Pennsylvania Governor Josh Shapiro signed SB 688 into law, expanding the number of available outlets that can sell ready-to-drink cocktails (RTDs) across the state. The new law defines “Ready-to-drink cocktails” as “beverage[s], composed in part of distilled liquor … premixed and packaged in original containers by the manufacturer, containing not more…
Growing Regulatory Focus on ‘Crossover Alcohol Products’
As more companies – including businesses with and without experience producing alcoholic beverages – move to leverage their brands and brand equity across the beverage spectrum, regulators, trade associations and the companies themselves are focusing on ways to responsibly label, advertise, market and display these products to avoid consumer confusion and potential sales to minors.…
US Supreme Court Overturns Chevron Deference
In Loper Bright Enterprises v. Raimondo, the US Supreme Court expressly overruled the doctrine of deferring to an agency’s interpretation of allegedly ambiguous statutory language initially articulated in Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc. Under the Chevron doctrine, courts applied a two-step framework interpreting statutes administered by federal agencies. The first step asks whether Congress had…