The main federal agencies that govern the brewery industry are the Tax and Trade Bureau (TTB), and the Food and Drug Administration (FDA). On the state level, breweries need to comply with the Department of Alcohol Beverage Control regulations in order to have the appropriate permits and licenses needed to operate a brewery business.

The Tax and Trade Bureau (TTB) does the following:

Brewery-Business-Regulations

  • Issues the federal permits necessary to produce, import, and wholesale alcohol (note: retailers do not need to be federally licensed);
  • Issues pre-approvals for beer/wine/spirit labels (commonly called COLAs);
  • Approves formulas for non-traditional beer/wine/spirits;
  • Collects excise taxes from alcohol producers;
  • Issues rulings affecting industry members; and
  • Regulates trade practices.

The Food and Drug Administration promulgates strict labeling regulations, determines safe food additives, and conducts facility inspections, among other things.

Generally, alcohol beverages are regulated by TTB (for labeling, licensing, formulation, tax, etc.). However, the FDA regulates issuance of some alcohol labels. The FDA has jurisdiction over the following matters for all alcohol products:

  • Food safety (i.e., FDA has interest in making sure all food products introduced into the market are safe and not adulterated or produced/packaged/processed/held under unsanitary conditions);
  • Food Facility Registration; and
  • Food additives and GRAS (i.e., anything intentionally added to a food product must be GRAS, or “safe”).

Brewery business operation is governed by a strict regulatory framework. The main federal agencies that govern the brewery industry are the Tax and Trade Bureau, and the Food and Drug Administration. On the state level, breweries need to comply with the Department of Alcohol Beverage Control regulations in order to have the appropriate permits and licenses needed to operate a brewery business.

Moreover, the FDA rules apply for beer product labels in two instances:

  • When beers do not meet the FAA definition of “malt beverage.” I.e., when beers are made without hops; and when beers made from a malted barley substitute (e.g., corn, rice, or wheat).
  • The major labeling differences for alcohol falling within FDA’s jurisdiction is that the FDA has the authority to police the market and take regulatory action against products or companies that do not comply with FDA rules and regulations. The biggest difference in FDA labeling is the requirements for Nutrition Facts Panel and the ingredients statement, which are not typically mandatory on TTB-regulated products. Moreover, the FDA requires the labeling of all major allergens, for instance: milk, egg, fish, and peanuts as defined in the Food Allergen Labeling and Consumer Protection Act.

However, most small businesses selling alcohol can avoid the Nutrition Facts Panel labeling requirement as they often qualify for a Small Business Nutrition Labeling Exemption. The exception applies when a business sells less than 100,000 units of the product in the U.S. during a 12-month period, and must employ less than 100 full time employees.