Member Article

The Federal Alcohol and Tobacco Tax and Trade Bureau, fondly known as TTB, issued final rules that contain a few game-changers for the alcoholic beverage manufacturing industry.

We are particularly fond of the greater flexibility offered to distilleries. Distilleries can now count the years bourbon or whisky are aged in used barrels. Previously, a whisky or bourbon could only list the number of years aged in new oak barrels.

“You can innovate, but not get punished for aging in an unconventional barrel,” observed Waller’s whisky lawyer to the stars, Rob Pinson.

Under the new rules, whisky aged for 4 years in new barrels, and an additional 3 years in used rye barrels, can be called 7-year-old whisky. Previously, it was 4-year old-whisky.

The most controversial proposal did not make the final cut. TTB did not attempt to define what constitutes an “oak barrel.”

In the past, we understand that industry member posed lots of questions about barrels: Can I use square barrels? Can I use 35-gallon barrels? Does the barrel have to bulge in the center? TTB did not limit the type of barrels by specifying the shape and size of barrels used for aging.

In another nod to innovation, distilleries now have more stylistic freedom for labeling. In the past, the front label had to contain all of the information required by TTB. Now, a distillery can put a simple bold logo on the front, for example, with the required label information on the side or back of the bottle. This will enable greater creative flexibility in graphic design, and potentially with bottle design.

Another big plus for the industry is doubling the threshold for errors in determining the proof for spirits. Distilleries generally add water as a final finishing phase of the distillation process. This is generally done right before bottling.

TTB previously required that the amount of alcoholinthe bottle - say 80 proof (which equates to 40% alcohol) - had to be within 0.15% of the amount of alcohol statedonthe label.

TTB audits distilleries and tests for the accuracy of alcoholic content. If a batch of spirits was off more than 0.15%, TTB often requires that the distillery dump the entire batch, reproof the spirits and re-bottle. What a pain.

Now distilleries have twice the margin of error when proofing. We see this as a big boost for the industry, while not having any impact for consumers. Even the most polishedpalateprobably cannot detect a difference of 0.15% in alcoholic content.

On a personal note, we are looking forward to continued innovation for vodka. Castle & Key has quickly become our favorite, shaken over ice. Previously, the definition of vodka required that the spirit be “without distinctive character, aroma, taste or color.”

Castle & Key has complex but subtle mash notes that make cocktail hour quite delightful. We look forward to distilleries crafting more innovative vodkas for our happy hours.

For those that are having trouble sleeping during the coronavirus pandemic, here is a complete copy of the TTB rules.

Federal licensing expertRob Pinsonprovides a handy summary below. Keep cocktailing.

The TTB recently released final regulations related to Alcoholic Beverage Labeling and Advertising. Here is a quick timeline for these new final regulations:

• 11/28/2018 - Proposed Rule issued
• 4/1/2020 - Final Regulations issued
• 5/4/2020 - Effective date of new regulations
  
  

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