ATF Policy on Labeling and Advertising of Flavored Malt Beverages

Washington, DC - The Bureau of Alcohol, Tobacco and Firearms (ATF) announces the publication of Industry Circular Number 2002-4. This ruling interprets regulations in 27 CFR Part 7 regarding labeling and advertising of flavored malt beverages, and reexamines ATF policy relating to these regulations.

Although flavored malt beverages have been produced and marketed in the United States for many years, recent developments in the industry have caused confusion for consumers, the media, and State regulatory and taxing organizations. Specifically, brewers and importers have begun to associate flavored malt beverages with well-known brands of distilled spirits. That association is made: by using a distilled spirits brand name as the brand name of a flavored malt beverage; by using labeling or packaging that resembles packaging of well-known brands of distilled spirits; and by the use of distilled spirits terms in describing flavorings added to the malt beverages. For example, a label might read:

• "[Distilled Spirits Brand Name] - Flavored malt beverage made with natural flavors containing vodka."

ATF finds statements such as this to be misleading. Although ATF will allow continued references to a distilled spirits brand name, it is prohibiting any such references that lead the consumer to believe that the product is made with or contains specific types or classes of distilled spirits. The direct addition of distilled spirits, in fact, is not permitted in the production of malt beverages. ATF has permitted the addition of alcohol-based flavoring materials to malt beverages, but distilled spirits used to manufacture flavorings lose their class and type identity (such as vodka, tequila, or rum) when blended with other ingredients to make a flavor extract. ATF therefore considers it misleading to represent that a malt beverage contains a particular class of distilled spirit when it contains only an alcohol-based flavoring.

Click here for the full text of the ruling, visit the ATF web page at: www.atf.treas.gov.