I need to understand what are the restrinctions and regulations in the beverage industry.
Thank you very much for your inquiry. There are a few reports that discusses the beverage industry codes and statutory obligations. Each country has different regulations.
Report 1: Wholesaler Pricing Restrictions, December 2015
This report discusses regulations for alcoholic beverages specifically at both the federal and state level and presents the Federal Alcohol Administration Act as it relates to wholesalers issuing credit options for retailers. The act states that wholesalers cannot issue credit beyond 30 days from the date of delivery. There is also discussion of state laws as well as which states have wholesale price restrictions and credit extensions restrictions. There are also maps depicting the distribution of these restrictions by state.
— Wholesaler Pricing Restrictions, December 2015
Report 2: Minerco Resource, Inc, November 2013
This report contains a detailed section on the regulations in the United States. For example, beverage products are subject to regulation from multiple agencies such as the FDA, the FTC, the Consumer Product Safety Commission, the United States Department of Agriculture and the Environmental Protection Agency along with state and local authorities. Many of these regulations are centered on the claims that are made about the product. The FDA regulates any marketing or labeling that makes health related claims. The FDA has rules for the production and the labeling specifications of the products. Additional legal requirements have been enacted requiring that eco-taxes or fees be charged for the sale and use of refillable containers.
“…the Dietary Supplement and Nonprescription Drug Consumer Protection Act (S3546) which was passed by Congress in December 2006, imposes significant regulatory requirements on dietary supplements including reporting of “serious adverse events” to FDA and recordkeeping requirements” (pg 9).
— Minerco Resource, Inc, November 2013
Report 3: Control State News, Wine in the US, November 2015
In Canada, there is a regulation battle between the establishment that sell alcohol to consumers and the legislature. A report card for each province was issued based on their alcohol policies. Prince Edward Island received one of the highest grades of a B- because they offer wholesale pricing. Alberta had the highest grade of a B+ because they offered the broadest selection, and the best average price to consumers.
There are also reports at the state level that discusses how each state has regulated certain industries.
- Florida tax regulation of ciders: Revenue estimating conference, January 2015
- New York has led the nation in regulations that strengthen the craft beer industry: State of Opportunity, New York Economic Analysis, December 2015
“Working collaboratively with the industry, New York charted a new path to grow our craft beverage industry by rewriting laws, relaxing regulations, creating new farm-based manufacturing licenses, launching aggressive promotional campaigns and implementing a multitude of business friendly reforms resulting in remarkable growth for the industry” (pg 11).
— Wine in the US, November 2015
As a result of relaxed regulation, New York now has 900 wineries, breweries, distilleries and cideries. The number of microbreweries has increased by 233% from 2010 and the new Farm Brewery Law has resulted in 106 new licenses.
I hope you find this useful, and can see that there is a lot of useful information available through the portal about the beverage industry. If you have any additional needs or questions about our reports, please feel free to contact us.