In recent years, alcohol-infused foods—such as rum cakes, alcohol ice cream, and even beer-infused chocolates—have gained popularity among consumers. These innovative products offer a unique culinary experience, combining the flavors of alcohol beverages with delicious food items. However, businesses producing these products must navigate a complex web of federal and state laws, regulations, and compliance requirements. Understanding how to legally produce and sell alcohol-infused foods is crucial to avoid costly mistakes and ensure regulatory compliance.
This article provides a comprehensive overview of the key laws, regulations, and challenges related to the production of alcohol-infused foods, with a focus on the alcohol beverage industry.
What Are Alcohol-Infused Foods?
Alcohol-infused foods are products that contain alcohol as an ingredient. These can range from baked goods, like rum cakes, to frozen desserts, such as alcohol ice cream, and even candies, sauces, and savory dishes. The alcohol in these foods is either cooked off or retained, depending on the preparation method, and its inclusion can affect the overall product’s legal classification.
Federal Laws and Regulations Governing Alcohol-Infused Foods
The production and sale of alcohol-infused foods are regulated by both the Alcohol and Tobacco Tax and Trade Bureau (“TTB”) and the Food and Drug Administration (“FDA”). Each agency oversees different aspects of the product, making compliance a bit tricky for producers.
Alcohol Regulation by the TTB
The TTB is responsible for regulating all alcohol products, including alcohol beverages and alcohol-containing ingredients. When it comes to alcohol-infused foods, the TTB governs the following:
- Alcohol Content: The TTB regulates the amount of alcohol in the product. If a food product contains 0.5% alcohol by volume (ABV) or greater, it may be classified as an alcohol beverage and subject to TTB regulations. The threshold for alcohol content determines whether the product is subject to excise taxes, labeling, and other regulatory oversight.
- Labeling Requirements: If the product is classified as an alcohol beverage, the TTB requires that labels comply with specific standards, including alcohol content disclosure and health warnings. The label must clearly state if the product contains alcohol, and it may be subject to approval by the TTB before distribution.
- Excise Taxes: Alcohol-infused foods that contain significant amounts of alcohol (at or over 0.5% ABV) are subject to federal excise taxes. These taxes apply to the alcohol used in the product, and the rates can vary depending on the type of alcohol (e.g., distilled spirits, beer, wine).
For more information on the TTB, see our overview here: What is the Alcohol and Tobacco Tax and Trade Bureau (“TTB”)?
FDA Regulations on Food Safety
The FDA regulates the non-alcohol aspects of alcohol-infused foods. This includes:
- Food Safety: The FDA ensures that alcohol-infused foods are produced in sanitary conditions, meet food safety standards, and do not pose health risks to consumers. This includes—but is not limited to—monitoring the manufacturing processes, ingredients, and labeling practices.
- Ingredient Labeling: Under the Food, Drug, and Cosmetic Act, the FDA requires that all ingredients be clearly listed on the packaging. This includes any alcohol-based ingredients, which must be accurately described by their common or usual name. Additionally, if the alcohol content is high enough to affect consumers (i.e., if it’s retained in the product), the FDA requires the alcohol to be disclosed on the label.
State Regulations
While the TTB and FDA provide overarching federal guidelines, each state may impose additional regulations. Some states have specific rules for the sale of alcohol-infused foods, including:
- State Liquor Laws: Many states have their own alcohol-related laws that govern the production and sale of alcohol, including alcohol-infused foods. In some states, alcohol-infused foods may be treated as alcohol beverages, subject to state-level taxes, sales restrictions, and distribution laws.
- Alcohol Content Restrictions: Some states impose stricter rules about alcohol content in food products. For example, a state may limit the amount of alcohol in a food product to prevent it from being classified as an alcohol beverage. Other states may prohibit the sale of certain alcohol-infused foods, such as those containing higher concentrations of alcohol.
- Licensing: In addition to federal licensing requirements, some states require businesses that produce and sell alcohol-infused foods to obtain specific licenses, such as a food establishment license or an alcohol producer license.
Challenges and Compliance Concerns
Navigating the production of alcohol-infused foods is challenging due to the interplay of regulations from multiple agencies. Some common challenges faced by producers include:
- Classification of the Product: Determining whether a food product is an alcohol beverage or a food item with alcohol content can be complex. Products with alcohol content at or above 0.5% ABV are generally considered alcohol beverages and must meet all related regulations, including labeling, excise taxes, and distribution restrictions.
- State Variability: With each state having its own set of rules regarding alcohol content, sale, and distribution, alcohol-infused food manufacturers must understand the laws in the states where they intend to sell their products.
- Excise Taxes: Producers of alcohol-infused foods with significant alcohol content need to be aware of excise taxes. The TTB imposes taxes on alcohol beverages, which could be a significant factor in the cost structure of the product.
Conclusion
Due to the complex and often contradictory nature of federal, state, and local regulations, businesses producing alcohol-infused foods must carefully navigate a range of legal requirements. Working with an alcohol beverage attorney who understands the intricacies of alcohol and food laws can help avoid costly legal pitfalls, ensure compliance, and streamline the production and distribution process.
An attorney with experience in alcohol beverage law can assist with everything from licensing and excise tax compliance to developing contracts and navigating state-specific regulations. Whether you’re looking to launch a new product or expand your existing offerings, an attorney can help ensure your business stays on the right side of the law.
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).