We can all agree that there have been a lot of changes to the way we consume and experience adult beverages, especially in the years and aftermath of the COVID-19 pandemic. We had to reconsider the way we operate in basically every aspect of living, so naturally, the beer, wine, and spirits industries have changed drastically too. That means, of course, that the laws are changing. That’s why if you’re wondering how to open a brewpub, obtain a TTB license in your state, or have any other high-level questions about how to get started in the industry, staying on top of legal trends can make your life way easier.
Ready-to-Drink Cocktails
Ready-to-drink cocktails, or RTDs, are the fastest-growing trend in the beverage industry. The closure of bars and restaurants in 2020 led many to hone their at-home bartending skills. On the other hand, some people just want a tasty beverage without going through the hassle of mixing their own drinks. Piggybacking on the success of hard malt seltzers, many beverage companies turn their focus toward pre-made canned cocktails. However, the differences between hard seltzers and RTD cocktails go much further than the recipes.
Each product, whether derivatives of beer/malt beverages, wine, or distilled spirits, is governed by both state and federal regulators differently. This presents a multitude of legal hurdles to consider when looking to start an RTD brand, including product formulation, labeling, marketing language, and taxation. To read more about the way RTD cocktails are changing our habits, check out this article.
Health & Eco Consciousness
Recent events over the past few years have brought both health and environmental consciousness to the forefront of a lot of consumers’ minds, and with valid reason. More and more consumers are seeking healthier options, reading the ingredients and claims made on packaging, and seeking sustainable and cause-oriented companies. However, claims made on certain labels are prohibited for alcoholic beverage products, especially advertising relating to health and wellness.. The “good-for-you” alcohol beverage does not exist, and regulators worry that such claims could encourage some to overconsume.
If your beverage product falls in line with health-conscious advertising, it is important to know the limits of this advertising language before investing too much time and money into brand conceptualization. Most often, it pays to have it done right the first time.
Non-Alcoholic Options
Another trend that has really taken off in the last few years is the option for non-alcoholic beverages, which can be tricky to understand the liquor laws for this beverage category. While the first non-alcoholic versions of adult beverages came out during the prohibition era in the 1930s, recent years have seen a spike in consumers seeking NA options for one reason or another. Because the trend and appearance of new takes on NA beverages are relatively novel, there can be a bit of confusion when it comes to regulations. In some states, individual stores can choose whether or not they would like to allow minors to purchase these new products. Many of the beverages, like non-alcoholic spirits, wines, and beers, are made to give the appearance of consuming alcohol so that people who don’t want to imbibe don’t have to feel left out. Due to the fact that it varies from state to state and is recently evolving, it’s best to consult with a liquor attorney before making any moves that could get your business in trouble.
As our approach to certain aspects of life has been adapting and evolving, the beverage industry has experienced profound shifts as well, consequently leading to changes in the regulatory framework. This highlights the importance of seeking guidance when facing substantial legal inquiries such as securing a TTB license within your state or questions about the ABC application or COLA application. A beverage lawyer is a critical component of your team, and as you continue to develop your brand, our team is here to help.
