Posts Tagged: Distilleries

TTB Expands Allowable Changes to Labels without Resubmission, but Reminds us that One Label “Does Not (Necessarily) Fit All”

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…)

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Labels – It’s Not just the TTB that’s watching

As purveyors of beverages containing alcohol, most craft brewers, distillers and wineries are aware of the Alcohol and Tobacco Tax And Trade Bureau (“TTB”) rules for labels, and the sometimes onerous task involved in getting those labels approved.  To avoid extra expenses and delays, those who are not aware of the TTB requirements need to quickly get up to speed on those rules or engage counsel who can guide you through the process.  We cannot overstate the importance of following TTB rules, and making sure every label change conforms with the rules, including new approvals where necessary.  The TTB takes the rules very seriously.  So seriously that it annually conducts a random compliance investigation and publicly publishes the results of that investigation. (more…)

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A Bourbon Conundrum

The recent week-long strike at two Jim Beam facilities in Kentucky highlights a very interesting tension in the current workplace.   Workers at the Boston and Clermont, Kentucky facilities overwhelmingly rejected the second contract proposal in two weeks, stepping out on strike on October 15, 2016.  The second contract proposal included “substantial wage increases” for already very well-paid employees, which left management at a quandary as to why the workers voted to strike. The workers, for their part, wanted a guarantee that the company would hire more full-time workers and stop relying as heavily on temporary workers, among other complaints with the contract proposal.  The crux of their complaint was that they felt that they had to work too much and it was interfering with work-life balance.

Bourbon production, until the recent boom, had traditionally followed a more seasonal production pattern and the company had been hesitant to hire full-time workers during the busy production periods, as they did not want to have to lay the workers off when production inevitably slowed.  However, with the popularity of bourbon at an all-time high, the production schedule for the past two to three years remained consistently high.  The combination of the company’s reluctance to hire more full time workers and the consistently high demand for bourbon resulted in the full-time workers being compelled to take on more overtime hours to keep up with the demand.  Management was surprised by the vote to strike because workers at the two facilities are paid base hourly rates of up to more than three times the Kentucky minimum wage of $7.25 per hour.  At time and a half for all hours worked in excess of forty, those employees were enjoying a significant and sustained spike in their annual earnings.  Union officials acknowledged that the employees knew that they were well-paid; however, they felt that the company had neglected to hire enough full-time, regular employees to keep up with production demands in the now $3 billion business of bourbon production. (more…)

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