Having a good label for your beer is critical. The label identifies you as the producer and showcases your style to consumers, while also informing them as to what they are about to enjoy. However, that means there are a lot of rules and procedures that breweries need to follow when drafting their labels, imposed by both state and federal agencies. Get ahead of your compliance needs by hearing Alex Koral, regulatory general counsel for Sovos ShipCompliant, discuss the basics and not-so-basics of beer label regulations.
Including:
-COLAs for breweries
-What must and what cannot be on a beer label
-Considerations for NA beer
-An overview of state brand registration requirements
Based in Boulder, Colorado, Alex Koral is Regulatory General Counsel for Sovos ShipCompliant, where he serves as lead legal researcher for beverage alcohol regulation and has become a leading expert on interstate distribution of alcohol. He has spoken on the topic at many industry events including the Craft Beer Professionals Virtual Conferences, Craft Brewers Conference, American Craft Spirits Association Convention, as well as meetings for the National Council of State Liquor Administrators and the National Liquor Law Enforcement Association. Alex has been in the beverage alcohol arena since 2015, after receiving his J.D. from the University of Colorado Law School.
This webinar, presented by Alex Coral—Regulatory General Counsel at Soos Ship Compliant—provides an expert overview of the key rules, regulatory frameworks, and practical advice surrounding beer label compliance in the United States. It targets breweries expanding distribution and those seeking to understand federal and state labeling requirements, including the label registration processes.
- Legal Foundations and Purpose of Beer Labeling Rules Historical Context: Labeling rules originated after Prohibition to ensure product transparency, consumer protection, and accurate taxation.
Purpose of Labels: To convey truthful product identification, including:
Who produced the beer.
What exactly is in the bottle.
Volume and alcohol content (where applicable).
Consumer Trust: Labels build trust by preventing misleading claims or false product representations.
Producer Benefit: Labels serve as marketing tools for brand recognition.
Regulatory Frameworks:
Two main Federal Codes govern beer labeling:
Internal Revenue Code (IRC)
Federal Alcohol Administration Act (FAA)
These codes:
Define what qualifies as an alcoholic beverage or malt beverage.
Establish mandatory label information.
Set prohibitions on label content.Product Definitions Under the Codes:
Code Definition of Beer/Malt Beverage Key Criteria
IRC Beer: brewed from malt or malt substitutes Alcohol by volume (ABV) > 0.5%
FAA Malt Beverages: brewed from malt or malt substitutes and hops ABV > 0.5% and must contain hops
Implication:
Beers brewed without hops (e.g., some seltzers or malt beverages without hops) fall under IRC but not FAA.
FAA label rules (including COLA process) apply only to malt beverages with hops sold interstate.- Mandatory Label Information Requirements
For all malt beverages with ABV over 0.5%, labels must include:
Brand Name: The marketed name of the product (broad and sometimes nuanced, may include brewery name or specific beer style).
Producer/Importer Name & Address: Corporate legal name and city/state of location to establish accountability.
Class and Type of Product: Standardized classifications per TTB (Alcohol and Tobacco Tax and Trade Bureau) guidelines.
Net Contents: Use strictly imperial units (pints and ounces), with specific rules:
Measurements under 12 oz must use ounces.
Pints can only be used for volumes over 16 oz.
Government Warning Statement: Mandatory all-caps warning related to alcohol consumption risks.
Alcohol Content Statement: Optional for malt beverages but must follow strict formatting rules if included.Important Formatting Rules:
Font size, placement, and legibility of all mandatory info are strictly prescribed by TTB.
Failure to adhere to these formats is a common reason for label rejection during the approval process.- Prohibited Label Contents
Labels cannot contain:
False or misleading statements about the product or its origin.
Disparaging remarks or imagery, especially offensive graphics or references to competitors.
Unauthorized geographic statements: Geographic names must either be a recognized distinctive beer type or use a “-style” modifier to avoid misleading consumers (e.g., "Belgian-style ale" instead of "Belgian ale" if not from Belgium).
Government iconography implying official endorsement.
Unsubstantiated health claims or statements about intoxicating/non-intoxicating effects.
False endorsements from individuals or agencies.- Non-Alcoholic Beer Labeling Products with ABV below 0.5% are not subject to FAA or IRC labeling provisions but still face specific rules:
Clearly identify the product as non-alcoholic or alcohol-free.
“Alcohol-free” can only be used for products with 0.0% alcohol.
“Non-alcoholic” is for products with alcohol content between 0.0% and 0.5%.
Must avoid consumer confusion, especially around minors. - Resources for Label Compliance The Code of Federal Regulations (CFR), Title 27, Chapter 1, Subchapter A covers rules for beer, wine, and spirits labeling.
The TTB issues Beverage Alcohol Manuals (BAMs), offering detailed guidance on:
Font sizes.
Label placement.
Net contents units.
Government warning formatting.
Producers should supply BAMs to label designers prior to artwork development to avoid costly revisions. - Federal Label Approval: The COLA Process COLA (Certificate of Label Approval) applies only to products regulated under the FAA (spirits, wines >7% ABV, and malt beverages containing hops sold interstate).
Non-FAA products (e.g., non-hopped malt beverages or beers sold only in-state) are not eligible or required to get COLA.
The TTB reviews submitted labels for:
Mandatory information presence and proper formatting.
License and producer info accuracy.
Prohibited content.
If issues arise, the TTB returns the COLA application for correction instead of outright rejecting.
Recent improvements have streamlined and sped up COLA approvals through the online MyCOLA platform.
Top Reasons for COLA Returns:
Reason Description
Mandatory Information Errors Formatting or missing required elements (e.g., government warning)
License Discrepancies Mismatches between label producer info and federal license records
Missing or Required Formula Beers with nontraditional ingredients may require submission of formulas to TTB
The COLA process is iterative, with TTB providing guidance if contact is made.- Allowable Label Revisions Without New COLA
Certain label updates do not require a new COLA:
Deleting non-mandatory content.
Repositioning or changing color of text.
Changing trade/brand names provided they match licensed names.
Updating net contents (e.g. changing package size).
Adding/removing alcohol content statement when adhering to formatting rules.TTB provides an interactive resource to verify whether a change requires a new COLA.
- State Brand Label Registrations Even after obtaining federal approvals, most states require label registrations for alcohol products sold within their borders to maintain regulatory control.
Most states’ requirements align with federal standards, primarily requiring proof the label has a valid COLA or meets federal compliance.
State Rules Highlights:
Few states impose unique rules (e.g., Mississippi bans alcohol content statements on beer; Washington mandates them).
States require registrations mainly to:
Keep track of products on shelves.
Monitor distributors and their contractual relationships.
Enforce franchise laws limiting distributors’ and producers’ business conduct.
Label registration costs vary by state—often minimal but can be significant in some jurisdictions.
Online registration systems are increasingly common, speeding up approvals.
Some states require annual renewals of registrations.
Rules for line extensions (adding new varieties under an existing brand) differ by state; some require individual registrations for each SKU.Special Cases:
State Special Notes
California Price posting requirements instead of formal label registration but labels must be identified.
Nevada Distributor-focused notification rather than label registration.
Hawaii No statutory registration but some counties (e.g., Honolulu) request notification.
Utah Registration only for low ABV beers (<5%) due to state-controlled distribution for higher ABV beverages.
- Distributor Agreements and Franchise Rules States impose franchise laws regulating terms and termination of distributor contracts.
Common restrictions include:
Required good cause for contract termination.
Extended cure periods (up to 9 months) for distributors to fix performance issues.
Poorly negotiated contracts can trap breweries in unfavorable distributor relationships.
It is crucial to:
Use well-crafted distributor agreements tailored by lawyers familiar with alcohol regulations.
Avoid informal or handshake deals.
Define what constitutes good cause for cancellation in contracts.
These agreements are often a point of state regulatory scrutiny during label and brand registrations. - Key Recommendations for Breweries Understand product definitions under IRC and FAA to know applicable rules and federal registration obligations.
During label design, prioritize mandatory labeling elements and formatting per TTB BAM guidelines.
Submit COLA applications early to avoid market delays.
Keep business licenses and corporate addresses updated with TTB to prevent returns.
Prepare formulas and consult experts if using nontraditional ingredients.
Utilize TTB’s resources and interactive tools for COLA revisions decisions.
Investigate and comply with each state’s brand registration and renewal requirements before market entry.
Establish strong, compliant distributor contracts with informed legal guidance.
Regularly audit regulatory changes and renewals to maintain compliance and market access.
This comprehensive overview equips brewers and beverage alcohol businesses to navigate federal and state beer labeling laws skillfully, ensuring legal compliance, smooth market distribution, and robust brand protection.