Importing unique spirits and liquors that aren’t yet “mainstream” in the United States can be a rewarding business venture, as these products often offer something distinct to the market. However, the process of importing liquors like cachaça, shochu, raki, pisco, baijiu, chinotto, cynar, palenque, and marañón can come with a series of challenges.
This high-level guide outlines the general process, potential difficulties, and the steps needed to navigate U.S. laws to help importers manage the complexities of—and leverage the benefits of—this unique market.
Unique Spirits & Unique Business Opportunities
The world of spirits is far more diverse than the familiar offerings of whiskey, vodka, and rum. Many lesser-known liquors, such as Baijiu, Pisco, and Shochu, have deep cultural roots in their respective countries and are steadily gaining popularity in the U.S. market. These unique spirits are expanding the palate of American consumers, who are increasingly seeking out global flavors and craft beverages that offer distinct, new drinking experiences.
Here are just a few:
- Cachaca (Brazil): Made from sugarcane juice, cachaça is Brazil’s national spirit and is most famously used in the Caipirinha cocktail. It offers a unique earthy flavor compared to rum, which is made from molasses.
- Shochu (Japan): A versatile Japanese distilled spirit made from barley, rice, or sweet potatoes, typically with a lower ABV than most spirits. It has a rich history and is enjoyed in various ways, from neat to in cocktails.
- Raki (Turkey): A Turkish anise-flavored spirit made from grapes and flavored with aniseed. Often consumed with meals, it’s known for its distinctive milky appearance when diluted with water.
- Pisco (Peru and Chile): A grape-based brandy with competing claims of origin from Peru and Chile. It’s typically consumed as a base for cocktails, especially the Pisco Sour.
- Baijiu (China): A strong Chinese spirit made from sorghum or other grains, with an ABV typically ranging from 40-60%. It is the most consumed spirit in the world by volume and is integral to Chinese culture.
- Taki (Macedonia): A fruit brandy often made from plums or grapes, Taki is a strong and fruity spirit traditionally consumed as a digestive. It’s a key part of Eastern European brandy traditions.
- Chinotto (Italy): Made from the bitter chinotto orange, this Italian liqueur has a complex, bitter flavor profile. It is used as both a standalone drink and an ingredient in cocktails.
- Cynar (Italy): A bitter Italian liqueur made from artichokes and a mix of herbs. It’s typically enjoyed as an aperitif or in cocktails.
- Palenque (Mexico): A type of artisanal mezcal produced in Oaxaca, Mexico, Palenque is made using traditional methods and often features smoky flavors from wood-fired distilling.
- Marañón (Peru): A rare Peruvian brandy made from the maranon fruit, known for its tropical sweetness and complexity. This exotic liquor is distilled in the Amazon Basin.
These unique spirits each bring a distinct flavor and cultural richness, offering importers the opportunity to introduce something new and intriguing to the U.S. market.
General Process for Importing Liquor into the U.S.
Importing alcoholic beverages into the U.S. is a heavily regulated process. Here’s a basic overview of the steps involved:
Obtain an Importer’s Permit
The first step is to apply for an importer’s permit from the Alcohol and Tobacco Tax and Trade Bureau (“TTB”). This involves setting up a TTB Permits Online account and drafting a permit application, providing business documentation, and ensuring compliance with federal regulations. The permit grants the importer the authority to bring alcoholic beverages into the U.S.
Customs and Border Protection Clearance
Once the product reaches U.S. ports, it must clear U.S. Customs and Border Protection (“CBP”). This involves submitting the required entry forms, paying customs duties, and passing through inspection. CBP ensures that all imported alcohol adheres to U.S. regulations.
FDA Compliance
The Food and Drug Administration (“FDA”) is responsible for overseeing the safety of food and beverages. Any food-related labeling requirements, including health and ingredient warnings, must be met for imported liquors. This may include ensuring the beverage complies with labeling requirements and meets safety standards.
Label Approval from TTB
After clearance, the TTB must approve the labels of imported liquors. The labels must contain necessary information such as alcohol by volume (ABV), the importer’s name and address, and health warnings. All label approvals are handled through the TTB’s COLAs Online system.
State-Level Compliance
In addition to federal regulations, each U.S. state has its own laws governing the sale, distribution, and taxation of alcoholic beverages. Some states may have specific importation procedures or extra taxes on imported spirits. Each state’s alcohol control board should be consulted for local requirements.
Common Difficulties in Importing Unique Liquors
Ambiguities in Regulations
One of the biggest challenges when importing liquors that aren’t widely known in the U.S. is that the laws and regulations may not directly address some of these products. The U.S. regulatory system is more attuned to widely-recognized spirits such as tequila, vodka, and rum. Consequently, importers may face ambiguity when trying to classify these products or determine if they need special permits or certifications.
For instance, spirits like marañón, a brandy made from an Amazonian fruit, may not easily fit into existing categories defined by the TTB. Similarly, products such as Cynar, which is a bitter liqueur, may not have specific guidelines for marketing or labeling outside of traditional categories like vermouth or amaro.
Importers of less common spirits may encounter delays as they work with regulatory agencies to get clarity on how their product should be classified and taxed. Navigating this grey area often requires patience and expertise in alcohol law.
Limited Market Penetration and Consumer Awareness
Another challenge is the market itself. Unique liquors often have limited awareness in the U.S. The public might not be familiar with these drinks, making it difficult to generate interest or demand. For instance, shochu, while popular in Japan, has not reached the same level of recognition in the U.S. as, e.g., sake or whiskey. The success of these spirits largely depends on effective marketing and educating consumers about the product.
Building a customer base for less-known liquors requires creative strategies, strong distribution networks, and, importantly, compliance with the rules surrounding marketing alcoholic beverages.
The Upsides of Importing Unique Liquors
Despite these challenges, there are notable benefits to importing these niche liquors:
High Growth Potential
Being one of the few importers of a unique product allows you to carve out a market niche with little competition. While introducing a liquor that is not well-known may take time, consumers are always on the lookout for new and interesting options, especially as the craft spirits movement grows.
Unique Branding Opportunity
Liquors like cachaça, raki, or pisco have distinctive cultural and traditional backgrounds that can be used as a powerful marketing tool. You can position your product as an exotic, high-quality offering that appeals to adventurous drinkers seeking something out of the ordinary.
Contracts and Other Considerations
When importing unique liquors, importers often need specific contracts to ensure smooth transactions with producers. These may include:
- Importation Agreements: Defines terms, pricing, delivery schedules, and responsibilities.
- Distribution Agreements: Outlines terms for selling the liquor within the U.S.
- Labeling and Marketing Agreements: Ensures that all labeling and promotional materials meet regulatory standards.
These agreements protect both the importer and the producer, ensuring that all parties are clear about expectations and responsibilities.
How Can Lindsey Zahn P.C. Help Your Distilled Spirits Importer Company?
Importing unique liquors that are not mainstream in the U.S. offers exciting opportunities, but it also involves navigating complex legal requirements and overcoming market challenges. By understanding the importation process, addressing regulatory ambiguities, and crafting effective marketing strategies, importers can bring innovative products to a growing and curious market.
Given the intricate nature of alcohol laws, especially for lesser-known spirits, working with an alcohol beverage attorney is crucial. An experienced attorney can help guide you through the importation process, ensure compliance with all applicable laws, and protect your business interests in this niche but potentially lucrative market.
Contact Lindsey Zahn P.C. to schedule an introductory meeting to discuss your needs and products and to learn more about how we can help: info@zahnlawpc.com or (929) ZAHNLAW (929-924-6529).