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
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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…
DOJ Proposes to Reschedule Marijuana (Cannabis) to Schedule III
On May 21, 2024, the US Department of Justice (DOJ) published the highly anticipated notice of proposed rulemaking (NPRM) to reschedule marijuana (cannabis) from a Schedule I controlled substance to Schedule III, taking the first step to easing federal restrictions on cannabis and potentially opening up the door for further cannabis research and development. This regulatory change…
Labor Law Update: Union Certification Without Winning the Employee Vote
As reported throughout the trade press, alcohol beverage companies are facing escalating pressure from unions and the National Labor Relations Board (or NLRB, the federal agency that enforces labor laws against both unionized and non-unionized companies). As recently as last month, an NLRB administrative law judge ordered Woodford Reserve Distillery to recognize and bargain with…
Preparing for Evolving Cybersecurity Threats
The recent ransomware attack against the Duvel Moortgat Brewery demonstrated the very real risk that cybersecurity incidents pose to the alcohol industry, reportedly halting operations for several days at four of Duvel Moortgat’s facilities in Europe and the United States. This attack comes after other major alcohol producers experienced disruptive ransomware attacks in the last…
So, You’ve Been Sued in a Labeling Class Action. Now What?
Many alcohol beverage industry clients are faced with lawsuits attacking product labels. These lawsuits can be frustrating for clients, particularly when the labels at issue were previously approved by the Alcohol and Tobacco Tax and Trade Bureau (TTB). But approval by the TTB does not insulate a company from a lawsuit under various state consumer…
TTB Ramps Up Tax Audits and Enforcement
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 Trade Investigations Division (TID), the Tax Audit Division (TAD) and the Intelligence Division. Many…
Navigating Hemp THC Beverages
Nonalcoholic beverages infused with delta-9 tetrahydrocannabinol (THC) derived from hemp (aka intoxicating hemp beverages) are becoming increasingly popular for consumers looking for an alternative to alcohol. With major alcohol retailers like Total Wine entering the cannabis space, alcohol beverage producers may be looking for opportunities to leverage their existing experience in manufacturing, marketing and distributing…