May 14, 2018 11:06 am
With the increasing popularity of beer tourism and the statistics on brand loyalty (or lack thereof) among craft beer lovers, breweries may be looking for ways to promote their brand and keep their brewery’s name on the lips of consumers. Some have started loyalty programs, while others find alternate fun and distinctive ways to promote their brand. We continue to be amazed by and applaud the craft brew community’s innovative approach to growth and marketing. We encourage you to keep the craft beer community unique, creative and fun. But, sometimes promotions go wrong in unexpected ways that at best are embarrassing, and at worst run afoul of the law.
So let’s start with a recent mistake that led to the risk management guy (your author) getting stopped by TSA on his way home from speaking on that very topic at a national conference. I assume that most of this conference’s attendees flew there. I would also guess that many who flew opted not to check a bag. Those two simple facts were overlooked by at least one conference exhibitor whose good intentions in handing out carabiner key chains and pens went awry. (more…)
May 8, 2018 3:53 pm
In this episode of Verrill Voices: Lawyers on Tap, Verrill Dana attorneys Jennifer Green and Jonathan Dunitz discuss the importance of entity formation to the overall success of a brewery business, and the differences between forming an entity using widely available online resources versus doing so with the assistance of an experienced attorney. Drawing on her experience as a seasoned tax attorney, Jen provides invaluable information about the tax implications of various entity formation choices. (more…)
April 23, 2018 12:02 pm
Next week, on April 30, thousands from the craft brewing community will take over America’s Music City for the Craft Brewers Conference and BrewExpo America, presented by the Brewers Association. Joining them at this year’s conference are Verrill Dana Lawyers on Tap, Tawny Alvarez and Jonathan Dunitz. Jonathan will co-present, “From 1 Barrel to 1,000: Managing Risk from Start-Up to Rapid Growth,” with fellow panelists James Sanborn, of GHM Insurance Agency; Brad Weller, of Macpage; and Daniel Kleban, of Maine Beer Company. The panel discussion will focus on the risk that brewers need to be attuned to throughout their brewery’s growth – whether it’s a new lease for a larger facility, a bad batch of beer, contracts with glass manufacturers and canning contractors, or an accident in a tasting room. They will cover how to best protect your brewery from business and economic risks, including the roles of insurance coverage and bookkeeping. (more…)
April 20, 2018 1:58 pm
Certificate of Label Approval (or COLA) can be one of the more frustrating processes for brewers. Each label must be approved by the Alcohol and Tobacco Tax and Trade Bureau (TTB). Once the COLA is issued, only certain, limited changes can be made to the label without resubmitting it for new approval. In many situations, there are state requirements that must also be met.
Until March 26, 2018, there were only 34 categories of label revisions that could be made without a new application. On March 26, 2018, the TTB issued Industry Circular Number 2018-2, which amended an existing category and added three new categories of label revisions that may be made without submitting a new application (click here for the full list of categories). (more…)
March 29, 2018 10:11 am
Today (March 29) is baseball’s opening day and beer and baseball are in the news. The New York Yankees appear to be in trouble for their new “Pinstripe Pilsner” which has an image of your favorite Yankee player in the foam. But those of you wanting to take a sip of Aaron Judge’s mug may have to wait, since MLB does not allow current players on beer advertising.
Beer has been linked with baseball for as long as baseball has existed. In fact, the original Cincinnati Redstockings left the National League in 1881 when its brewer-owner refused to sign a “no beer at the ballpark” pledge. Today, there are still calls to take the suds out of sports. But knowing the current do’s and don’ts of sports advertising will help you stay a-head of the game. (more…)
March 28, 2018 10:17 am
Last week, on March 22, 2018, the Commonwealth of Massachusetts Alcoholic Beverages Control Commission issued an Advisory on cannabis in alcoholic beverages. Here is a copy of the Cannabis in Alcohol Advisory. While retail sales of cannabis are expected to be lawful under Massachusetts law (while still an illegal schedule I drug under federal law), as of July 1, 2018, the Commission noted that “it will remain unlawful to manufacture and/or sell alcoholic beverages containing any cannabinoid extracts, including tetrahydrocannabinol (“THC”) and cannabidiol (“CBD”), regardless of whether it is derived from the cannabis plant or industrial hemp.”
Specifically, the Commission noted that “Cannabinoid extract from the cannabis plant is considered a Schedule I drug by the Drug Enforcement Agency” and “[i]nfusing or otherwise adding cannabinoid extract in alcoholic beverages is considered adulteration of alcohol” under Massachusetts General Law chapter 270, chapter 1. The Commission notes that in addition to being considered an adulteration of alcohol under Massachusetts law it would also likely be a violation of the federal Food and Drug Administration’s Federal Food, Drug and Cosmetic Act, as “A food shall be deemed to be adulterated . . . [i]f it bears or contains any poisonous or deleterious substance which may render it injurious to health . . . .” 21 U.S.C. § 342(a). (more…)
February 21, 2018 11:32 am
The #MeToo movement has produced constant headlines and has helped positively change corporate culture. Is it possible for its breadth to include beer ads? Sexist beer ads have traditionally been the norm. Give a scantily clad gal a beer bottle, have her hold it to the camera, give a seductive wink, and voilà, you’ve created a beer ad. You may laugh but take a look at the Miller “Service With a Smile” ad depicting a girl in a bathing suit working under a car. Or the Schlitz ad featuring a Playboy Playmate and its new “Tall Boy” can with the line, “Here’s to Big Cans!” Or perhaps the raunchiest ever, the Falstaff Beer ad with a pic of the can next to the girl, “Beer v. Girl. At least the beer cannot change its mind once you get its top off.” (more…)
January 17, 2018 2:48 pm
On December 22, 2017, in one of the fastest-moving pieces of legislation to come across a President’s desk, President Trump signed into law a bill generally known as the “Tax Cuts and Jobs Act.” The Act will undoubtedly affect most individuals and businesses beginning with the 2018 tax year. Verrill Dana’s Tax Practice has prepared a comprehensive client advisory highlighting many of the major tax reform changes, including the numerous changes to how beer, wine and distilled spirits are taxed. These particular changes related to the beverage industry are only effective for the 2018 and 2019 tax years. (more…)
January 15, 2018 3:43 pm
This spring, the craft brewing community will take over America’s Music City for the Craft Brewers Conference and BrewExpo America®, presented by the Brewers Association, from April 30 to May 3. Joining them at this year’s conference is Verrill Dana’s own Jonathan Dunitz who will co-present, “From 1 Barrel to 1,000: Managing Risk from Start-Up to Rapid Growth,” with GHM Insurance Agency’s James Sanborn, Macpage’s Brad Weller, and Maine Beer Company’s Daniel Kleban.
December 14, 2017 10:56 am
Americans are increasingly sensitive to the ingredients that go into the food that we eat. Recently, Congress passed a law requiring manufacturers to label or place QR codes on products containing or made from genetically modified organisms (“GMOs”). Now, consumer advocates have turned their attention to food products bearing the word “natural,” raising legal risks for all food manufacturers who label products with that term.
Unlike many terms pertaining to food, such as “light/lite,” “low calorie,” “fat free,” and “reduced sodium,” the Food and Drug Administration (the “FDA”) does not officially define the term “natural.” Instead, the FDA has a longstanding, but nonbinding policy regarding the use of “natural” in human food labeling. Specifically, the FDA considers “natural” to mean “that nothing artificial or synthetic (including all color additives regardless of source) has been included in, or has been added to, a food that would not normally be expected to be in that food.” (more…)