Plus, the experts on scaling RTD brands͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
January 09, 2025
Bevnet

In this issue

Welcome back to the BevNET spirits newsletter! This week we’re digging into what’s top of mind for bev-alc lawyers in 2025 (i.e. how to avoid getting into trouble).

What insiders are reading: Check out our report on adult non-alc’s evolution and our chat with the experts on how to scale RTD brands.

Thanks for reading and happy new year! 

-BevNET spirits editor, Ferron Salniker

 

🔥Hot Take

The Legal Issues To Watch Out For In 2025

The Legal Issues To Watch Out For In 2025

Alcohol law: it’s still stuck in the post-prohibition era and yet always changing. We know it’s hard to keep track, so here are top areas where bev-alc lawyers are seeing more enforcement. 

Check Your Influencers

Work with influencers or hire third parties for social media? The TTB put out an industry circular in October clarifying that whatever rules apply to alcohol advertising also apply to social media, which means suppliers should be doing more vetting of the marketing firms they work with. 

“Brands are outsourcing a lot of that work to third parties that work with these social media influencers that don't have any experience in beverage and don't understand the regulations involved,” said Rachel Lawson, an alcohol attorney at Dickinson Wright. And so what happens is they put things out on social media and then the manufacturer gets popped with something.” 

By popped, she means given a citation. To avoid that, Lawson advises working with marketing companies that have dealt with bev-alc brands before – and asking them if they’ll compensate the supplier for any violations.

Non-Alc Tricks Of The Trade

Selling adult non-alc or crossover products? As those categories grow, the bev-alc lawyers over at McDermott Will & Emery want suppliers to remember that not all states regulate non-alc products equally. In certain states (Idaho, Kansas, Michigan, Nebraska and Georgia) if a non-alc product was dealcoholized it will be treated as bev-alc even if it is below the 0.5% ABV threshold – meaning selling direct to consumer might be restricted and franchise laws may apply to those products. Certain states also restrict selling “imitation liquor” to underage consumers. And, if you’re selling non-alc and full-proof products in the same portfolio, regulators are particularly looking at the separation between business practices, so don’t let activities that are expressly prohibited in the alcohol space creep over from your non-alc salesforce (e.g. paying a retailer slotting fees).

Direct-to-Consumer Shipping: “Don’t Be Cute”

New York’s big direct-to-consumer win brought the number of states that allow direct-to-consumer spirits sales from out of state spirit suppliers to about nine, and Alex Koral, regulatory general counsel at ShipCompliant is hopeful the new law will provide an example for other states. But while the tally remains, Koral said to brands, “don’t take any shortcuts or try to be cute about it and find contract loopholes to try to get around those rules and ship where states don't otherwise allow it.” One area of enforcement that has picked up is age checks, so be sure you are being compliant on that front. 

We'll have more on the site this week, including what some of the biggest legal cases could imply for the new year. 

 

📇RECENT HEADLINES

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🪄Emma Watson’s Renais Gin Conjures $6M Investment

The gin brand co-founded by Harry Potter actress Emma Watson has charmed U.S. investors, raising $6.18 million, the company announced this week. Having launched in the U.K. in May 2023, sibling founders Alex and Emma Watson secured a five-year distribution partnership with RNDC, and started their U.S. rollout in California and New York last summer. Abracadabra! (or whatever they say in Harry Potter), now they have the fuel to move into new states and several other countries. 

 

🩺Surgeon General Advisory Calls for Cancer Risk Warning Labels on Alcoholic Beverages

The health warnings around alcohol consumption are getting louder. A U.S. Surgeon General advisory issued last week called for adding cancer risk to health warning labels on alcoholic beverages. The report comes as the 2025 Dietary Guidelines for Americans’ alcohol consumption recommendations are being drafted and as bev-alc trade groups anticipate if the U.S. government, like other countries and agencies, will also dim alcohol’s healthy halo. Read the full report.

 

📈IWSR: RTDs Poised to Grow +6% Through 2028

Spirits-based ready-to-drink (RTD) canned cocktails are still on an upward trajectory but innovation is slowing, according to a new report. Cocktails and long drinks are outpacing other styles in numbers of new entrants, making up about one-third of all RTD innovation products.  The combination of sustained growth amid declining innovation is a “great sign for the industry” according to the report, and gives drinkers anchors to explore the category versus overwhelming them with choices. Read the highlights.

 

🎤Run That Back: Hip Hop Heroes Highlight Top Spirit Stories Of 2024

This year’s spirits news was full of big names and bold moves: warring tequilas, sudden closures, celebrities popping in and out of the industry, and even an intern blowing things up. You read ‘em, we ranked ‘em; here are this year’s top 10 spirit stories

 

🙊LOL

Our favorite Golden Globes moment:
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credit: @evanrosskatz

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