State legislators in Wisconsin and Illinois have proposed bills that would ban the sale and distribution of powdered alcohol, which may enter the market in spring 2015 under the brand name Palcohol. Sen. Tim Carpenter (D-Milwaukee), who proposed the Wisconsin legislation, reportedly compared the product to the synthetic hallucinogenic drug known as “bath salts,” which the state approved if they were labeled “not for human consumption” before banning them in 2011. He also apparently expressed concern that people could snort powdered alcohol, sneak it into classrooms and sporting events, or mistake it for another powder and ingest it accidentally. Illinois State Sen. Ira Silverstein (D-Chicago) proposed a similar measure as an amendment to the state’s existing Liquor Control Act of 1934, noting that his “public safety bill” would combat “people spiking beverages.” Similar legislation is also pending in Ohio, Colorado, Nebraska, Utah, and Indiana. Further details about powdered alcohol bans…
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The U.S. Federal Trade Commission (FTC) is soliciting comments on proposed amendments to the Fair Packaging and Labeling Act (FPLA). The 1967 law requires that certain products carry labels with identifying information such as the source, content and quantity and specifically excludes—among other categories—meat products, poultry and alcohol beverages. FTC sought comments on the existing rules in March 2014 and used some of the suggested changes in the proposed amendments, which include (i) “modernizing the place-of-business listing requirement to incorporate online resources”; (ii) “eliminating obsolete references to commodities advertised using the terms ‘cents off,’ ‘introductory offer,’ and ‘economy size’”; and (iii) incorporating “a more comprehensive metric chart.” Comments must be received by March 30, 2015. See FTC News Release, January 22, 2015. Issue 552
A consortium of prosecco manufacturers has reportedly contacted the United Kingdom’s Food Standards Agency and Intellectual Property Office to threaten legal action under EU trading regulations against British wine bars and pubs that refuse to stop serving the sparkling wine from a keg. Prosecco sales apparently surpassed those of its rival, champagne, for the first time in 2014, and in the same year the United Kingdom replaced Germany as the top export market for prosecco. “If prosecco is sold on tap then it is no longer prosecco—it needs to be served directly from the bottle,” Luca Giavi, director of the consortium, told The Telegraph. The winemakers cite a 2009 European law which states that “prosecco wine shall be marketed exclusively in traditional glass bottles,” and the president of the consortium, Stefano Zanettin, asserted that violations can merit fines ranging from €2,000 to €20,000. Michele Anzaldi, a member of the Italian…
Two days after filing a lawsuit alleging that Sierra Nevada Brewing Co. infringed its stylized label trademark featuring the letters “IPA,” Lagunitas Brewing Co. filed a notice of voluntary dismissal without prejudice in the case and its owner, Tony Magee, publicly commented that he had been “seriously schooled” by the “Court of Public Opinion” following a wave of social media backlash. The Lagunitas Brewing Co. v. Sierra Nevada Brewing Co., No 15-153 (N.D. Cal., notice of voluntary dismissal filed January 14, 2015). The complaint alleged that Sierra Nevada’s label for its new Hop Hunter IPA, in a “radical departure” from its typical label designs, infringed the Lagunitas trademark on “large, all-capital, bold, black and centralized ‘IPA’ lettering.” The complaint further argued that “[w]hen Lagunitas began selling its now iconic IPA beer in 1995, there existed only a handful of other brewers who produced an India Pale Ale, and, on information and…
A bipartisan group of U.S. representatives has proposed legislation that would reduce excise taxes levied on the first two million barrels of beer sold annually by small brewers. Reps. Erik Paulsen (R-Minn.) and Richard Neal (D-Mass.) were joined by Reps. Peter DeFazio (D-Ore.), Earl Blumenauer (D-Ore.), Patrick McHenry (R-N.C.), and Patrick Meehan (R-Penn.) in proposing the “Small Brewer Reinvestment and Expanding Workforce Act” (Small BREW Act) to impose an excise tax rate of $3.50 per barrel on the first 60,000 barrels and $16 per barrel on the next 1,940,000 barrels. If passed, the law would apply only to brewers that produce six million barrels or fewer each year. “Small brewers—long an important part of American culture and history—have enjoyed a tremendous growth in popularity in recent years,” Meehan said in a January 8, 2015, press release. “But while our brewing industry has evolved, our tax code hasn’t evolved with it.…
A January 5, 2015, post on NPR’s “The Salt” blog reports that trademark disputes have come to a head in the craft brewing market, where more than 3,000 companies compete for a dwindling number of pithy beer names. Although many brewers work to resolve issues outside the courtroom, there has also been an increase in litigation alleging trademark violations focused on overlapping product names, font styles and label designs. In some cases, brewers that have used beer names for decades have come under fire from new companies looking to trademark them. In particular, the article notes that many hop-related puns—such as “Hopscotch” and “Bitter End”—are currently used on more than one product. “American trademark law lumps breweries together with wineries and distilleries, making the naming game even more chancy,” concludes NPR. “Even imagery can be trademarked and protected in court.” Issue 550
Society Insurance has filed a lawsuit in Iowa federal court seeking a declaration that its policy does not require it to defend or indemnify Templeton Rye Spirits in a putative consumer class action alleging that the whiskey distiller falsely represented its products as made from a Prohibition-era recipe. Soc’y Ins. v. Templeton Rye Spirits LLC, No. 15-0005 (S.D. Iowa, filed January 5, 2015). The underlying lawsuit asserts that Templeton claims its whiskey is made in a “small batch” from a Prohibition-era recipe that was a favorite of Al Capone’s, but that the product is actually distilled at an MGP Ingredients, Inc. factory in accordance with a stock MGP recipe. Society seeks a judicial declaration that Templeton’s insurance policy, which Society argues covers only damages based on bodily injury, property damage or personal and advertising injury, will not require Society to indemnify a settlement or judgment against Templeton. The insurance company argues…
Anheuser-Busch Cos. has reportedly settled a consumer class action alleging that Kirin® beer is represented as a Japanese import even though the products sold in the United States are brewed with domestic ingredients in California and Virginia. Suarez v. Anheuser-Busch Cos., No. 2013-33620-CA-01 (Fla. Cir. Ct., 11th Jud. Cir., settlement preliminarily approved December 17, 2014). The October 2013 complaint alleges that Kirin’s labeling falsely implied that its products remained imported despite a 1996 agreement between the Japanese company and Anheuser-Busch to manufacture the beer in the United States and a 2006 deal that gave Anheuser-Busch the brand’s marketing and sales responsibilities. The complaint alleges that the packaging includes, in fine print, a statement clarifying that the beer is “[b]rewed under Kirin’s strict supervision by Anheuser-Busch, in Los Angeles, CA and Williamsburg, VA,” but that the statement is not visible to consumers before purchase. Under the proposed settlement agreement, consumers will…
Two consumers have filed a putative class action in California federal court alleging that Maker’s Mark® bourbon whisky is not “handmade,” as the alcohol brand advertises, but is instead manufactured using “mechanized and/or automated processes” with “little to no human supervision, assistance or involvement.” Nowrouzi v. Maker’s Mark Distillery, Inc., No. 14-2885 (S.D. Cal., filed December 5, 2014). Citing photos and a video tour of the distillery as evidence, the plaintiffs argue that because Maker’s Mark® uses machines to make its product, its “handmade” claim and premium pricing amount to misrepresentation and violations of California’s false advertising statute. They allege that they “purchased Maker’s Mark whisky under the false impression that the whisky was of superior quality by virtue of being ‘Handmade’ and thus worth an exponentially higher price as compared to other similar whiskies.” They seek class certification, an injunction requiring discontinuation of the “handmade” description, a corrective advertising…
A study of national poison control center data has reported that public and health care providers filed 5,156 incidents of energy drink exposure between October 2010 and September 2013, with 40 percent of cases involving children younger than age 6. Presented at the American Heart Association’s Scientific Sessions 2014, the new research warned that among cases with major outcomes, “cardiovascular effects (including an abnormal heart rhythm and conduction abnormalities) were reported in 57 percent of cases, and neurologic effects (seizures, including status epilepticus) in 55 percent.” The study also identified moderate or major health outcomes in 42 percent of cases involving energy drinks mixed with alcohol and 19 percent of cases involving alcohol-free energy drinks. Based on these findings, the researchers have evidently called for additional labeling to educate consumers about “energy drinks’ high caffeine content and subsequent health consequences.” “The reported data probably represent the tip of the iceberg,” said…
