Posted on June 29, 2010 by Davis Wright Tremaine

"Organic" labeling and advertising of wine, beer and spirits

The TTB and USDA entered into a memorandum of understanding (MOU) regarding the use of the term "organic" on alcoholic beverage labels and advertisements. Pursuant to the MOU, the TTB will still be responsible for analyzing alcoholic beverage labels and advertising, but will review all claims of "100% organic", "organic" and "made with organic (ingredients)" to see if they meet USDA National Organic Program guidelines.

COLAs for wine, beer and spirit labels that contain "organic" claims will now be approved by the TTB as "approved subject to compliance with the Organic Foods Production Act of 1990 and the National Organic Program regulations[.]" If they do not comply with USDA organic laws, the labels will be rejected and the TTB will let applicants know what changes need to be made to make the label compliant. An applicant may only appeal this rejection with the USDA's Agricultural Marketing Service.

A copy of the MOU is available here:

http://www.ttb.gov/pdf/mou-ams.pdf

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Posted on June 29, 2010 by Duke Tufty

Washington Grocery Stores Can Now Apply to Offer In-store Beer and Wine Tastings

Washington grocery stores that are currently licensed by the Washington State Liquor Control Board can now apply for a new license endorsement to offer beer and wine tastings in their stores. The new endorsement was created by Senate Bill No. 6329 during the 2010 Legislative Session after a successful pilot program that ended on September 30, 2009. The bill became effective June 10, 2010 and the Board is now accepting applications for the endorsement. The annual fee is $200. 

To qualify, the grocery store must meet the following criteria:

  1. The grocery store must have retail sales of grocery products for off-premises consumption that are more than 50 percent of the store’s gross sales, or the grocery store is a membership organization that requires members to be at least 18 years of age;
  2. The grocery store must operate a fully enclosed retail area encompassing at least 9,000 square feet with a limited exception described below.

The Board may issue an endorsement to a grocery store with a retail area encompassing less than 9,000 square feet when three conditions are met: (1) the board determines that no other store in the community the applicant serves meets the square footage requirement; (2) the applicant meets the remaining operational requirements; and (3) the applicant has not had more than one public safety violation within the past two years.

Tastings must be conducted under the following conditions: (1) samples must be 2 ounces or less and are limited to up to a total of 4 ounces per customer during any one visit to the store; (2) food must be available for the tasting participants; (3) customers must remain in the service area while consuming samples; and (4) the service area and facilities must be located within the store’s fully enclosed retail area.  The retail area must be of a size and design so that store staff can readily observe and control persons in the area to ensure that persons under 21 years of age and visibly intoxicated persons do not possess or consume alcohol.

A number of additional requirements apply. Employees conducting the tasting must hold a class 12 alcohol server permit. Wineries and breweries may provide personal services (such as pouring), but may not bear the costs of the product sampled. Further, stores may advertise tasting events only within the store, on a store website, in store newsletters and flyers, and via email and mail to customers who have requested notice of such events.

For more information, go to the Board’s website.

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Posted on June 28, 2010 by Duke Tufty

The OLCC is Considering a Satellite Liquor Store Pilot Program.

The Oregon Liquor Control Commission is considering adopting a new satellite liquor store pilot program. The purpose of the program is to evaluate the merits of operating satellite liquor stores in smaller communities where there is a fluctuating, seasonal demand due to tourism or other factors. The pilot program will consist of up to six new satellite liquor stores operated by existing retail sales agents appointed on a temporary basis and will last up to three years for each temporary agent. Only retail agents that currently operate liquor stores will be eligible for the program. The OLCC will select the program participants within 12 months of the program’s start and will consider the following factors in their decision: (1) seasonal population fluctuations, (2) distance from existing stores, (3) proximity of satellite store to the participant’s primary store, (4) sales volume of the participant’s primary store, and (5) anticipated viability of the pilot store, including the store size and location rental terms.

The satellite stores may become permanent stores if successful. Participating stores will be required to provide the OLCC with all data related to the pilot store’s operation. Six months before the end of each store’s terms, the OLCC will evaluate the store’s performance and, if successful, initiate a process to create a permanent satellite liquor store at that location. The OLCC will consider the economic viability, increase in revenues, effects on public safety, public response to the satellite store and other factors in making the determination about each store’s future.

 

For more information, see http://www.oregon.gov/OLCC/docs/administrative_process/proposed_rulemaking/satellite_liquor_stores/satellite_store_pilot_public_hearing_notice.pdf. 

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