On February 22, 2021, the Hawaii Senate passed SB No. 65, a measure allowing direct-to-consumer shipping of distilled spirits in original containers. The bill was passed in response to the legislature’s finding that the COVID-19 pandemic and the governmental responses to contain the spread of COVID-19 have disproportionately affected certain local liquor producers. With the frequent closure of bars, clubs, and in-person dining, local liquor producers have struggled to find alternative methods of serving their customers, resulting in drastic revenue losses.
Continue Reading Hawaii Senate Passes Bill Allowing Direct-To-Consumer Shipping of Distilled Spirits

In December 2020, the US Congress voted to pass, and the President signed, the long-awaited Craft Beverage Modernization and Tax Reform Act (“CMBTRA”), making permanent the reduction in the federal excise tax (“FET”) rate paid by distillers.

The CMBTRA was originally signed into law on January 1, 2018 as a two-year tax break for producers,

On December 29, 2020, the Alcohol and Tobacco Tax and Trade Bureau (“TTB”) published a final rule in the Federal register that amends TTB’s regulations that govern wine and distilled spirits. Specially, the final rule adds seven new standards of fill for wine and distilled spirits. The additional container sizes are:

Wine Distilled Spirits
355

We have blogged, most recently on July 30, 2019, about Minnesota’s farm winery statute. The statute allows local wineries to sell direct to retailers and the public, unlike the traditional three-stage manufacturer-distributor-retailer system. In order to qualify for the farm winery license, the winery must obtain 50% or more of its ingredients from Minnesota

The  issued Industry Circular 2020–3 on May 8, 2020 which clarifies the applicability of the trade practice provisions of the Federal Alcohol Administration (FAA) Act and TTB regulations during the COVID-19 public health emergency.  The guidance is in effect only from March 1, 2020 through September 30, 2020.
Continue Reading TTB Relaxes Certain Trade Practice Rules During COVID-19

The U.S. Food and Drug Administration (FDA) and Alcohol and Tobacco Tax and Trade Bureau (TTB) have issued new and updated guidance documents in addition to those previously published in order to address the decreased market supply of hand sanitizer products resulting from the rapid spread of the COVID-19 pandemic.
Continue Reading FDA and TTB Issue Additional Guidance on Hand Sanitizer Manufacturing, CARES Act Provides Tax Relief

COVID-19 (Coronavirus) has drastically impacted all facets of everyday life, including the way in which alcohol sales can be conducted. Though most jurisdictions have banned dine-in customers at restaurants, bars and tap rooms, many have permitted on-premise licensees to temporarily sell to consumers through delivery, curb-side pickup, or off-premise sales. It is imperative to contact

There is a House of Representatives bill pending that if passed would allow shipment of alcohol beverages through the US Postal Service. Currently alcohol beverages may only be shipped through a common carrier such as UPS or FedEx. If the legislation passes the ban on shipping through the mail would be lifted, and products could