GrayRobinson’s Alcohol Industry Team includes three former Federal Alcohol and Tobacco Tax and Trade Bureau ("TTB") professionals. These individuals are members of a small group of very knowledgeable professionals on federal alcohol regulations and compliance. Each month they will contribute to the newsletter, providing our wholesale and retail alcohol dealer customers with relevant "Q&A" and feedback on compliance guidelines regarding federal alcohol laws, regulations, and policies. We are excited to provide this forum to our customers. This month’s topic is private labels owned by retail alcohol dealers.
Question: What are the Federal rules regarding developing a private label?
First, if you want to develop a distilled spirit label, a TTB (Alcohol and Tobacco Tax and Trade Bureau) permitted Distilled Spirits Plant (DSP) would need to be contracted. The DSP would determine whether formula approval would need to be obtained from TTB. Not all distilled spirits products require formula approval from TTB. For example, a vodka with no flavors added does not require formula approval from TTB. However, a vodka with flavors, such as a cranberry, will need a formula approval from TTB.
When required, formula approval must be obtained before an application for label approval (COLA) can be filed with the TTB by the DSP.
Here’s an interesting catch; the DSP files with TTB for approval of formulas and COLAs. The formula remains with the DSP, not the brand holder. The brand holder may enter into exclusive label rights with the DSP, but the DSP is the responsible party with TTB. Since TTB can only insure privacy of a federally permitted DSP concerning proprietary information listed in a formula, the brand holder or state licensed retailer should insure that best contracts and trademarks protections exist for the private label.
For more details on the subject of private labels or questions regarding federal alcohol regulation and compliance therewith, please contact any of the following GrayRobinson consultants:
David Bateman
Deborah "Debbie" Lewis
Charles Tull