Most brewers are at least somewhat familiar with federal and state laws regulating the interrelationships between members of the different industry tiers. The most well-known are the “tied house” laws, which prohibit or severely restrict brewers or beer wholesalers from owning retail establishments (and vice versa), and substantially limit the ability of brewers or beer wholesalers to provide money, free goods, or other “things of value” to retailers.

Until recently, the laws prohibiting consignment sales in the alcohol beverage industry received little attention. But in the past 18 months, the settlement of two federal investigations involving the beer industry’s biggest players has focused new attention on the subject. This article will explain consignment sale laws in an effort to prevent brewers from inadvertently violating them.

Read the full article.

Originally published in The New Brewer, May/June 2017.

Last week, the Texas Alcoholic Beverage Commission (“TABC”) circulated a draft amendment of Texas’ name and address labeling regulation for “malt beverages” (beer).  A copy of the proposed amended regulation (with a redline of the changes) is can be found here.

Consistent with TTB regulations on name and address labeling for malt beverages, the current regulation requires only the name and address of the importer, with foreign producer information optional.  The revised regulation, in contrast, requires:

  • On labels of containers of imported malt beverages, the name and principal place of business of the foreign manufacturer, bottler or shipper must be stated

The proposed regulation accordingly marks a significant Texas departure from federal labeling rules.  First, it requires foreign producer information on the label.  Second, it requires the label to show the name and principal place of business address of the foreign producer.  This could require substantial changes to the labels of malt beverages sold in Texas.

The TABC is scheduled to hold a hearing in Austin on its proposed new regulation on Friday, March 10, 2017.