Areas of Expertise

Distribution Strategy

 

Alcohol beverage distribution in the U.S. presents a unique set of challenges and opportunities arising from a patchwork of different state laws and longstanding business practices within a primarily three-tier framework. We understand this business and legal environment and can advise on distribution strategies to maximize your success.

Labeling Law, Policy & Practice

 

Alcohol beverage labels are subject to an often-confusing set of imperfectly overlapping federal laws (e.g., the Federal Alcohol Administration Act; the Federal Food, Drug and Cosmetic Act). For most products, Alcohol and Tobacco Tax and Trade Bureau pre-approval is required before a label can move in interstate commerce, and that pre-approval process subjects labels to often un-published government policies and practices. We have decades of experience advising producers and importers on how to meet marketing objectives while complying with regulatory requirements and minimizing litigation risk.

Product Formulation

 

The ingredients and processes used to produce an alcohol beverage are subject to a variety of federal laws and policies, and product formulation can have a tremendous impact on a product’s classification, labeling, and excise taxation, to name a few. We possess experience with beer, wine, and distilled spirit formulations and have worked with liquid innovation professionals to craft products that meet business objectives within the U.S. legal and regulatory framework.

Trade Practices

 

The alcohol beverage industry is subject to a unique set of federal and state laws governing the interaction of alcohol beverage industry players. Many of these involve the interactions between members of different “tiers” of the industry, and can micro-manage conduct to an extent not seen in most businesses. We can help industry members devise promotion and distribution strategies within the frameworks permitted by such laws.

Excise Taxation

 

Alcohol beverages are subject to special federal, state, and sometimes local taxes. A complex body of regulations and rulings, particularly at the federal level, govern many aspects of industry members’ conduct in order to protect this source of government revenue. We have decades of unique experience with alcohol excise taxes arising from representing many companies in excise tax enforcement matters and advising on a wide variety of tax-mitigation strategies.

Non-Beverage Alcohol

 

Due largely to revenue concerns and fears of product diversion that date back to the days of U.S. national Prohibition, the federal government and some states still impose regulatory controls on the production, distribution, and use of non-beverage ethyl alcohol. These regulations affect chemical companies, consumer product goods manufacturers, producers of flavors, extracts, and essences, soft drink concentrate producers, distillers and users of fuel alcohol, and a host of other businesses. We possess unique knowledge of how companies operating in these industries can comply with the law and avoid potentially-enormous tax liabilities that arise from non-compliance.