Issue link: http://read.dmtmag.com/i/230154
ducers to begin placing compliant Serving Facts statements on labels as well as in advertisements, without submission of a new application for Certificate of Label Approval (COLA). Like in Notice No. 73, a Serving Facts statement under TTB Ruling 2013-2 must include the serving size; number of servings per container; number of calories per serving; and number of grams per serving of carbohydrates, protein and fat. The ruling further provides that caloric or carbohydrate representation in the labeling or advertising of any alcoholic beverage product at retail, including kegs, must be accompanied by either a statement of average analysis in accordance with TTB Ruling 2004-1 or a Serving Facts statement in accordance with the recent 2013 ruling. TTB will view any such representations not accompanied by a statement providing all the requisite information as misleading. The terms of this ruling do not apply when the only reference to calories or carbohydrates is the use of the term "light" or "lite" in the brand name. Finally, TTB Ruling 2013-2 permits the inclusion of information about the alcohol content of a product in the Serving Facts statements, March 11 14 March 11-14 arch rch c HT T O YO U Y B B B B 144 POTENTIAL EFFECTS OF MANDATORY LABELING While including a Serving Facts panel that provides calorie and other nutrient information may be helpful to consumers, there are many in the wine industry who believe that alcohol is consumed for pleasure and manufacturers should not be required to include this information on their labels. Most producers and industry members, including the Wine Institute, believe that inclusion of calorie and nutrient information on alcoholic beverage product labels should remain voluntary. Changing the labeling requirements will likely have significant cost impacts on alcoholic beverage manufacturers, particularly small wineries and breweries. In response to TTB Notice No. 73, which, if formally adopted, will require companies to list alcohol content and caloric and nutritional information in a Serving Facts panel on container labels, small producers identified the most significant costs as: Consumers may welcome the inclusion of Serving Facts information on wine labels, but for small producers, it could be financially harmful. Photo: Thinkstock 1) Cost of new labeling equipment or costs to upgrade equipment 2) Losses attributable to disruption in production for the purpose of installing new equipment 3) Cost of redesigning labels and for new label stock 4) Cost of investing in laboratory testing equipment or laboratory services to test for calorie, carbohydrate and other required nutrient content information Many small producers expressed concern that laboratory work and equipment to test for carbohydrate and calorie content will cause significant financial setback and negatively impact their market shares, making it more difficult for lowproduction, family-owned wineries to compete with large companies and low-cost imports. Others have noted that mandatorily imposing these new requirements would be especially burdensome to wineries that produce quantities of less than 5,000 gallons. Despite these concerns, TTB U BY BR G B OU Ric mond, Virginia Richmond, Virginia nd n ginia i expressed either exclusively as a percentage of alcohol by volume, or as percentage of alcohol by volume in conjunction with a statement of the fluid ounces of alcohol per serving. Regardless of whether industry members choose to include the information permitted by TTB Ruling 2013-2, they are still required to comply with all state or other existing mandatory regulations for labeling, particularly with regard to the placement of mandatory alcohol content statements. Moreover, on June 10, 2013, TTB published a final rule with respect to placement of alcohol content specifically on wine labels, which became effective Aug. 9, 2013, and permits the placement of an alcohol content statement on any label affixed to the container (including as part of a Serving Facts panel) rather than requiring it to appear on the brand label. A new COLA is not required if moving the placement of the alcohol content information is the only change made to the label. V I N EYA R D & WINE RY M ANAGEM ENT | Jan - Feb 2014 w w w. v wm m e d i a . c o m