ALCOHOL LAW ADVISOR
ALCOHOL LAW ADVISOR
Regulatory and Distribution Law Updates for the Alcohol Industry
ALCOHOL LAW ADVISOR
Regulatory and Distribution Law Updates for the Alcohol Industry
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McDermott’s Marc Sorini Named a 2019 NLR ‘Go-To Thought Leader’

By on Dec 19, 2019
Posted In

We are very pleased to share that one of our editors for Alcohol Law Advisor and head of McDermott’s Alcohol Regulatory & Distribution Group Marc E. Sorini was named a 2019 National Law Review Go-To Thought Leader. The National Law Review’s 2019 “Go-To Thought Leader Awards” spotlight 75 legal authors—less than 1% of the publication’s 15,000 thought leaders—selected from a pool of over 100,000 news articles published in 2019. Sorini was one of three thought leaders recognized in the “Food & Drug” category. According to the awards description, “The NLR Go-To Thought Leadership recipients not only demonstrate a depth of legal knowledge but also outline the steps needed for compliance and/or adaptation. These designated authors are not only reader favorites but are often quoted in other publications and/or syndicated in other media.”

Recognized as one of the leading lawyers in his field, Sorini has represented alcohol beverage suppliers before federal and state courts, the US Alcohol and Tobacco Tax and Trade Bureau (TTB) and Federal Trade Commission (FTC) and state alcohol beverage control agencies. He advises clients on compliance with the regulations and policies of the TTB, FTC, Food and Drug Administration (FDA) and Customs and Border Protection (CBP). Here, he shares his thoughts on the recognition, how he stays on top of industry trends and the advice he has for peers and future thought leaders.

Q: What are your thoughts on being named a NLR ‘Go-To Thought Leader’?

A: My first instinct is to say, “Dude, it rocks!” But sincerely, I’m honored to be included in such a selective list of my peers. Over the past year especially, our practice group has focused on optimizing our content: getting to the heart of why, say, a regulatory update really matters and how readers should take action in response. It’s validating to see that approach has resonated.

Q: What have you found most useful in your tenure in terms of staying on top of industry trends for this practice, which led you to this recognition?

A: It starts with discipline, first and foremost. I carve out the time to read up on industry developments through daily updates like Alcohol Issues INSIGHTS, Beer Business Daily, INSIGHTS Express and Wine & Spirits Daily. I also try to keep tabs on bills and case law, as well as the monthly and bimonthly publications like The New Brewer and Artisan Spirit Magazine. Making the time to stay up to date really pays dividends, in my experience. Court cases, for instance, become old news very quickly if you don’t stay on top of them.

Q: As an established thought leader, what would you advise the peers and future thought leaders? How are you already working with the next class to ensure a continued stream of valuable content in this space?

A: As we know, the way lawyers are compensated can sometimes create a perverse incentive: The instant reward is for putting in billable hours, not for the deeper practice [...]

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Cannabis and Hemp Update

By and on Jul 29, 2019
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Cannabis legalization receives widespread popular support. According to opinion polls, more than two-thirds of Americans support full legalization—a steep rise in support considering that as recently as 2005, almost two-thirds of Americans opposed legalization. The country appears on the path to full cannabis legalization, but until that time, citizens and companies should be aware of the legal risks involved in entering the cannabis space.

Access the full article.

Originally published in The New Brewer, July/August 2019.



Implications of the Supreme Court’s Tennessee Retailers Decision

By on Jul 8, 2019
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As virtually everyone in the US alcohol beverage industry knows, last week the US Supreme Court handed down its opinion in Tennessee Wine and Spirits Retailers Assn. v. Thomas, S.Ct. No. 18-96 (June 26, 2019). Now that over a week has passed since the release of that decision, it’s time to reflect on what it means and what is coming next.  (more…)



Data Breach: How to Prepare for What Experts Have Deemed Is Inevitable

By on Jun 24, 2019
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Data security experts often say there are two types of businesses: those that have been hacked and those who will be hacked. Many small business owners believe they are too small to attract a hacker or fall victim to a breach, but this is not true. Given the costs and broad reach of data breaches, small businesses must take a proactive role in preparing themselves for a breach and mitigating its effects. A small business can take practical steps to better protect itself and its brand from the effects of a data breach.

Read the full article.

Originally published in Artisan Spirit: Summer 2019.



24th Annual Wine, Beer & Spirits Law Conference

By on Jun 6, 2019
Posted In

On September 16–17, CLE International will host the 24rd Annual Wine, Beer & Spirits Law Conference in Charlotte, North Carolina. Those attending will include the alcohol beverage industry’s leading practitioners, including in-house counsel for producers, distributors and retailers, as well as industry lawyers and state administrators. Conference topics include:

  • Updates on TTB developments and trends
  • An overview of recent developments in alcohol trade practice and trademark law
  • The significance of regulatory compliance, and the state of data security and ownership
  • Updates on the cannabis industry, including the latest legalization efforts and how it could affect the alcohol beverage industry

McDermott partner Marc Sorini serves as co-chair for the event and will also present. Other McDermott presenters will be Michael Kimberly and Anthony DeMaio.

Click here for the full agenda and registration information.



Winds of Change Blowing for Craft Brewers

By and on May 29, 2019
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For those who follow developments in the law and craft brewing with equal passion, every year has its share of substantial issues. This year has been no exception, with a pending Supreme Court case; a substantial upswing in federal trade practice enforcement activity; a massive rewrite of US Tax and Trade Bureau (TTB) labeling and advertising regulations; and prospects for extending the biggest cuts in the excise tax on beer since the repeal of Prohibition.

As these developments play out over the next year, we may see changes translate into the marketplace. Find out what you can expect.

Access the full article.

Originally published in The New Brewer, May/June 2019.



TTB Spring 2019 Updates to Semi-Annual Regulatory Agenda

By on May 28, 2019
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The spring edition of the federal government’s semi-annual Unified Agenda of Federal Regulatory and Deregulatory Actions (Regulatory Agenda) has been published. Like other federal agencies, the Alcohol and Tobacco Tax and Trade Bureau (TTB) uses the Regulatory Agenda to report on its current rulemaking projects.

The Regulatory Agenda provides glimpses into TTB’s policy focus and aspirations. But, readers should recognize that TTB rulemaking moves very slowly, and the Agency often does not meet the aspirational dates published in the Regulatory Agenda.  (more…)



Congress Can Open Financial Institutions to Legal Cannabis Industry with SAFE Banking Act

By and on Apr 26, 2019
Posted In ,

Federal statutes create risk for banks that want to operate in the cannabis space. Banks face the threat of civil actions, asset forfeiture, reputational risk, and even criminal penalties if they do business with customers in the cannabis industry. Further, because most banks will not touch cannabis money, the growers, processors, and retailers in the industry must often operate on a cash-only basis. The Internal Revenue Service has even had to build “cash rooms” to accommodate taxes paid by legal cannabis companies.

Access the full article.



FDA Releases Warning Letters to CBD and Hemp Oil Companies

By on Apr 9, 2019
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Last week the Food & Drug Administration (FDA) made public three new warning letters to Cannabidiol (CBD) and hemp oil product companies sent by FDA and the Federal Trade Commission (FTC). FDA has previously targeted cannabis product companies.

The new warning letters are consistent with FDA Commissioner Scott Gottlieb’s recent statements that the FDA will go after manufacturers of CBD products that make health and wellness claims that FDA views as egregious. For example, the CBD companies in question allegedly marketed their products for Alzheimer’s disease, fibromyalgia, inflammation, skin conditions, autoimmune disorders, anxiety, cancer pain, PTSD and depression, to name a few symptoms. These companies are making food, dietary supplements, and cosmetic products, as well as products for pets (CBD for dogs). (more…)



Washington Court of Appeals Upholds Multi-Million Dollar Fine for 5-Hour Energy Advertising Claims

By on Apr 4, 2019
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On March 18, 2019, the Washington Court of Appeals upheld a trial court’s decision that three advertising campaigns for 5-Hour Energy® made by Living Essentials, LLP and Innovative Ventures, LLP (collectively, Living Essentials) violated the Washington Consumer Protection Act (CPA) by making deceptive advertising claims.

Living Essentials makes and markets the energy drink 5-Hour Energy®. The three advertising claims at issue involve claims about the efficacy of the drink. Living Essentials claimed or implied that: (1) 5-Hour Energy® was “Superior to Coffee” (Superior to Coffee claim); (2) decaf 5-Hour Energy® was effective “for hours” (Decaf claim); and (3) 73 percent of doctors would recommend 5-Hour Energy® (Ask Your Doctor claim). The trial court found all three advertising claims in violation of the CPA. It also assessed a civil penalty against Living Essentials of $2,183,747 and awarded the State $1,886,866.71 in attorney fees and $209,125.92 in costs. The court of appeals affirmed.

Living Essentials argued on appeal that the trial court (1) erred by adopting the Federal Trade Commission’s (FTC) prior substantiation doctrine; (2) that the prior substantiation doctrine violates article I, section 5 of the Washington State Constitution and the First Amendment to the United States Constitution; (3) that Living Essentials’ claims were mere puffery which did not require substantiation; (4) the trial court applied the wrong standard for necessary substantiation; and (5) the trial court erred in concluding that Living Essentials’ Ask Your Doctor claim was deceptive. Living Essentials also challenged the trial court’s penalty and award of attorney fees. (more…)



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