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New TTB Final Rule Released on Denatured Alcohol


By on Sep 12, 2016
Posted In Distribution, Non-Beverage Alcohol

The new TTB Final Rule that was released in the Federal Register on August 20, 2016 will partially streamline the use of non-beverage alcohol products in the US. While statutory requirements do not permit TTB to completely de-regulate the distribution and sale of denatured alcohol, the attached rule, among other things: Reclassifies a number of “specially...

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Texas Court Strikes Down Prohibition on Payments for Brand Rights


By on Aug 30, 2016
Posted In Advertising and Marketing, Distribution

Late last week, a district judge in Texas declared unconstitutional under the Texas Constitution a provision of the state’s Beer Industry Fair Dealing Law (i.e., the beer “franchise” law) that expressly prohibits a brewer from accepting a payment in exchange for a grant of territorial distribution rights.  Section 102.75(a)(7) of the Texas Alcoholic Beverage Code,...

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DEA Declines to Change Stance on Marijuana but Opens Door to Federally Sanctioned Marijuana Research


By and on Aug 11, 2016
Posted In Food Safety and FDA

On August 11, 2016, the Drug Enforcement Administration (DEA) formally declined to change its position on the medical or recreational use of marijuana, denying two petitions urging the federal government to change marijuana’s drug classification under the Controlled Substances Act. The petitions, filed in 2009 and 2011, urged the DEA to change marijuana’s status as...

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FDA Brewery Inspections


By and on Jul 27, 2016
Posted In Food Safety and FDA

Most breweries have numerous deal­ings with the Alcohol and Tobacco Tax and Trade Bureau (TTB) and un­derstand the need to comply with TTB regulations; this includes preparation for TTB audits and inspections. But the TTB is not the only federal agency with the authority to con­duct a brewery inspection. The Food and Drug Administration (FDA)...

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Sixth Circuit Tri County Decision Provides Much-Needed Clarity on “Successor” Provision in Ohio Franchise Law


By on Jul 12, 2016
Posted In Distribution

I attach a copy of the US Court of Appeals for the Sixth Circuit’s recent decision in Tri County Wholesale Distributors v. Labatt USA Operating Company, Nos. 15-3710/3769 (6th Cir., July 6, 2016). For students of the increasingly byzantine case law interpreting the Ohio franchise law’s “successor” provision, Ohio Rev. Code § 1333.85(D), the opinion...

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Non-Compete Agreements: Friend or Foe?


By on Jul 5, 2016
Posted In Advertising and Marketing, Distribution

With the boom of craft producers, competition is ever-increasing. If you’re thinking about going into the business or you already have, undoubtedly you have considered how you can best protect your products, recipes, methodologies, and distribution from imitation or recreation. The sale and manufacture of unique craft drinks creates a unique set of issues and...

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The Evolving Alcohol Regulatory System


By on Jun 2, 2016
Posted In Advertising and Marketing, Distribution

Most participants in the alcohol beverage industry are very familiar with the “three tier system.”  What will surprise many, however, is learning that the system did not emerge immediately after Prohibition. Read the full article, originally published in the May/June 2016 issue of The New Brewer.

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FDA to Issue Revised Guidance on Nutrition and Supplement Facts and Serving Size Regulations


By on May 23, 2016
Posted In Advertising and Marketing, Food Safety and FDA

This Friday, May 27, 2016, the US Food and Drug Administration (FDA) will publish its revised Nutrition and Supplement Facts and Serving Size regulations. The Serving Size regulation in public inspection view is close to 180 pages and the Nutrition Facts regulation is close to 1,000 pages. Significantly, for beverages: Serving size will be 12 ounces. The new...

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Guidance Provided on Interplay of “Dormant” Commerce Clause and the 21st Amendment


By on May 4, 2016
Posted In Distribution, Trade Practices

On April 21, the US Court of Appeals for the Fifth Circuit handed down its opinion in Cooper v. Texas Alcoholic Beverage Commission, No. 14-51343.  It provides further guidance, at least within the Fifth Circuit, on the interplay of the “dormant” Commerce Clause and the 21st Amendment following the Supreme Court of the United States’...

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Trademark Tips for Small Distillers


By on Apr 20, 2016
Posted In Advertising and Marketing, TTB COLAs and Formulas

What’s in a name? (Or a slogan, logo, symbol or other source-identifying device?) Well, turns out a lot. While the craft spirits industry is a tight knit and collegial community, businesses must strive to create a unique and distinctive place in the market that makes their products stand out from the rest. For small distillers, who...

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