What is a TTB COLA?
The acronym COLA stands for Certificate of Label Approval. A COLA is a document issued by the Alcohol and Tobacco Tax and Trade Bureau (“TTB”) that authorizes the use of a specific label on the container of an alcohol beverage product. Generally speaking, a COLA is required for all alcohol beverages — including wine, malt beverages, distilled spirits, hard cider, sake, etc. — that are sold in the United States (with few exceptions).
The TTB is tasked with implementing and enforcing significant compliance provisions to ensure that alcohol beverage products are created, labeled, and marketed in accordance with federal alcohol beverage laws and regulations. Some of the TTB’s job includes ensuring that labels do not contain false or misleading information about the product’s origin, composition, or alcohol content; that the product does not contain an false or misleading statements that explicitly or implicit disparage a competitor’s product; and that the label does not contain prohibited health claims; and so on.
The agency enforces these laws and regulations during the COLA application process during which labeling specialists review the label to determine if the product meets and complies with federal alcohol beverage requirements. The COLA process is a means by which the TTB aims to protect consumers from fraudulent or misleading claims and to ensure that beverage alcohol products sold within the U.S. are properly labeled.
COLAs are obtained by a domestic manufacturer (in the case that the alcohol is produced and/or bottled in the United States) or by the U.S. importer (in the instance the product is imported in its fully finished state).
What is the Process to Obtain a COLA?
The TTB COLA process can be daunting, but it is essential for any business that seeks to sell its alcohol beverage in the U.S.
Below we provide a step-by-step guide on how to obtain a TTB COLA:
Step 1: Obtain a Federal TTB Basic Permit
If you are the manufacturer of the product or the importer of record, you will need to obtain a federal basic permit with the TTB before you can submit a COLA application. Obtaining a TTB federal basic permit can take several months to obtain between drafting the application as well as waiting on the application to be processed. The application will require basic business information (such as ownership structure, EIN, source of funds, etc.) and location information as well as information about your business activities.
Step 2: Register with COLAs Online and Formulas Online
If you are a new industry member, you will need to register with TTB to set up a COLAs Online / Formulas Online account before you can submit a label and/or formula application. This step can only be completed upon the issuance of a federal TTB basic permit. Once your COLAs Online account is set up, you can draft and submit a COLA application to TTB.
The COLA application must include an image of the label as it will appear on the container along with the brand name of the product, the responsible permittee, formula disclosure, and additional important details. In the case of domestically produced alcohol beverages, it is important to note that the COLA typically must be submitted by the company that is bottling the product. In the case of imported alcohol beverages (that are already bottled), the importer must submit the COLA to TTB.
Step 3: Wait for Approval
Once the COLA has been submitted, TTB will review the application to ensure the label meets all requirements. This can take several days to a few weeks, depending on the complexity of the application, the type of product, TTB’s current processing time, etc.
If the application is approved, you will receive a COLA from TTB and the application’s status will change to “APPROVED” in TTB’s COLAs Online portal. The COLA will permit your company to sell the product in the U.S. (Note: Individual states may have additional or other requirements to sell alcohol beverages.)
Alternatively, the application may be returned to you for corrections (i.e., “NEEDS CORRECTION” status). An application could be returned for a number of different reasons but, generally speaking, most applications are returned because the label does not comply with one of the federal labeling regulations. Examples of applications returned for corrections can include failure to include a formula on a product that requires a formula, missing an importer statement on an imported product, failure to include an appellation of origin on a vintage-dated wine, missing a sulfites statement if sulfites are detectable at 10 or more parts per million, etc.
It is possible that the application could be outright denied (or changed to “REJECTED” status) but, from our experience, it is more common for TTB to send the application back needing corrections. It certainly can depend on the specific issue, though. For example, a label for a wine under 7% alcohol by volume should be rejected by TTB since TTB does not have primary labeling jurisdiction over wines under 7% alcohol by volume (instead, such products are regulated by the FDA).
Obtaining a COLA is a necessary step for any business in the U.S. that is producing and bottling alcohol or for any importer of alcohol beverages. It can be a time consuming process, especially if you are not familiar with the federal wine, malt beverage, or spirits labeling regulations.
What is the Impact of COLAs on the Alcohol Beverage Industry?
TTB COLAs have a significant impact on the U.S. alcohol industry. For starters, COLAs help consumers receive accurate and truthful information about beverage alcohol products they purchase. Not only is this vital for building trust between suppliers and consumers but it is also one of the goals of the TTB.
Moreover, TTB COLAs are required for alcohol beverage producers seeking to enter the market. Without a COLA, a product cannot legally be sold in the U.S. Part of TTB’s role is to ensure that labels comply with federal regulations, helping to even the playing field amongst competitors at the market. Generally speaking, if a statement is not allowed to be claimed but one supplier, it typically should not be allowed to appear on a third party’s label.
How Can Lindsey Zahn P.C. Help with COLA Applications?
Lindsey Zahn P.C. works closely with both alcohol beverage companies to review proposed labels for compliance with federal alcohol beverage labeling regulations. The firm has reviewed proposed labels for wines, malt beverages, distilled spirits, hard ciders, hard seltzers, meads, and many more to provide our clients with feedback on mandatory items that may be missing from a label, advise of potential risks, and offer alternative solutions. We have also submitted many label (and formula) applications to TTB and are aware of the types of comments and feedback that may come up during the process and can issue spot and alert you of potential issues before the application is submitted. Additionally, Lindsey Zahn P.C. has worked closely with TTB to resolve correction requests and/or to submit arguments on behalf of our clients.
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).