The US Beer Market
Bureau AWEX – New York
September 2009
Edith Mayeux, Attaché économique et commercial
Patrizia Venditti, Assistante commerciale
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Contents
I. DESCRIPTION OF THE US BEER INDUSTRY...................................................................3
II. DISTRIBUTION........................................................................................................................4
THREE TIER SYSTEM........................................................................................................4
BREWERS............................................................................................................................4
WHOLESALERS OR DISTRIBUTORS.............................................................................4
RETAILERS.........................................................................................................................5
III. STATE OF THE US BEER INDUSTRY 2008.....................................................................6
IV. CURRENT MARKET TRENDS...........................................................................................9
ACQUISITIONS..................................................................................................................9
CRAFT BREWING..............................................................................................................9
HEALTHY LIVING............................................................................................................11
NUTRITIONAL LABELING..............................................................................................11
V. BARRIERS TO ENTRY..........................................................................................................12
COMPETITION...................................................................................................................12
ADVERTISING...................................................................................................................12
CONSUMER LOYALTY....................................................................................................13
DISTRIBUTION..................................................................................................................13
ACCESS TO INGREDIENTS & RAW MATERIALS.......................................................13
GOVERNMENT REGULATIONS.....................................................................................13
VI. IMPORT REGULATIONS....................................................................................................14
US CUSTOMS & TARIFFS.................................................................................................14
FEDERAL REGULATIONS...............................................................................................14
STATE REGULATIONS.....................................................................................................18
LOCAL REGULATIONS....................................................................................................18
IMPORTING SAMPLES FOR TRADE SHOWS...............................................................19
VII.
US IMPORTERS OF BELGIAN BEER...................................list vailable upon request
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I. Description of the US Beer Industry
At first glance, the US beer industry may seem a bit puzzling. Why is it so complicated? In order to
understand its current complexity we begin this section with a brief review of the historical facts in
order to provide some explanation for today's three-tier system.
As a starting point, the 18th amendment to the US constitution banned the production and sale of
alcohol. This amendment was introduced principally because of the political influence of the
moderation movement as well as resulting problems of the supplier retailer system in place at that
time. Basically the suppliers, which were most successful, had ownership ties to the retail
establishments whereby they could demand exclusivity for their brands. This caused the overall
industry environment to become rather aggressive in nature. In order to stay in business and increase
their overall sales, retailers did whatever they could to encourage drinking without taking into
consideration the resulting social cost caused by excessive consumption. This in turn fueled the
prohibition movement. The prohibition's purpose to decrease excessive consumption and lower crime
proved to be unsuccessful. The actuality was that it caused the reverse. There was an increase both in
excessive consumption of alcohol and organized crime, which ultimately diverted the resources of law
enforcement and in turn brought about more problems than solutions.
In 1933 the 21st Amendment was ratified and thereby repealed the prohibition which served as an
important learning tool for the nation. The prohibition brought attention to the social sensitivities of
alcohol and how the production, distribution and sale of alcohol should be monitored and safeguard the
general public. It was directly responsible for the structure and design of the three-tier system in place
today.
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II. Distribution
Three Tier System
The three-tier system includes brewers (or importer in the case of foreign brewers), wholesalers and
retailers. This system helps to ensure that alcohol is carefully regulated and taxed at the state level
while taking into consideration the local preferences of the state's counties and communities. It
benefits retailers with a more level playing field eliminating the aggressive marketing and sales
practices during the pre-prohibition era and encourages moderate, responsible consumption. Overall
the three-tier system acts like a safety net and provides "checks and balances" for the way alcohol is
distributed and sold to retailers and consumers.
Brewers
Anyone who manufactures beer is part of this top tier. Brewers sell their unique brands to licensed
beverage distributors. They are mandated by state alcohol regulatory agencies to fulfill certain
responsibilities, which may include: payment terms incentives, price posting contracts, termination
agreements etc. Every state has a different set of regulations. Brewers are responsible for providing
marketing support to the wholesaler, a consistent supply of the product, and maintenance of the
product's quality level. Brewers are expected to contribute to marketing programs by providing brand
awareness/education and promotional materials (coasters, glasses, posters etc.) to their distributor(s).
In the case of brewers exporting to the US, they will need to first establish a relationship with an
importer. In most cases the importer has an established distributor network. Oft times, specialty beer
brewers and importers can encounter some obstacles with the distribution tier. Market access can be
difficult in certain regions because consolidation has resulted in fewer and larger wholesalers. In any
case it is highly advisable to consult an attorney before signing an agreement or terminating a contract
with an importer/distributor.
Wholesalers or Distributors
Wholesalers/distributors represent the middle tier. They purchase beer directly from the brewers or in
some cases an importer. They sell to licensed retailers and are responsible for proper storage,
maintaining and inventory management, call frequency and delivery of the beer. They should act as
the brewer's state liquor liaison, provide market information and assist the brewer with market
promotions. Brewers gain certain advantages through their distributor relationship. First, they reduce
their retailer non-payment risk. Second they reduce their capital requirements.
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Benefits of wholesaling are also passed down to the retailer. Wholesalers warehouse and deliver the
beer locally, which in turn minimizes retailer inventory and costs associated from storage of beer.
Because of their proximity to their customers, they also maintain the freshness of the products to the
final consumer.
Distributors favor imported beer because it provides higher margins.
Retailers
Retailers represent the bottom tier, which sells directly to the public. They must be licensed by the
state to sell alcohol and are supplied directly by wholesalers. They sell directly to the public and are
required to adhere to their state laws. The feedback/purchase orders they provide distributors reflect
the demand of their customers, which in turn represent the local market or region. Demands for styles
and brands will vary depending on location.
Pages 3-5, as well as some information on market trends, are extracted from FIT Study dated September 2007
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III. State of the US Beer Industry 2008
According to Beverage Marketing Corporation, the domestic beer market for the year 2008 was up
0.5% by volume, down from 2007's 1.5% growth and 2006's 2.2% gain. Total domestic beer was up
1.1%. There were some bright spots within the beer segment, such as craft beers, which posted a 5.8%
volume gain representing a significant decline from 2007's 12% jump. Craft beer’s share of the total
US beer market jumped from 3.8 percent in
2007 to a little more than 4 percent in 2008.
Craft beers offer more variety of flavors,
which is resonating with consumers.
Innovation is also another major reason for
growth in this segment. According to
Information Resources, Inc. (IRI), seasonal
beers have now become the No. 1 selling
craft beer style in the US.
Super premium and light beers also drove growth for the category. Imports continue to decline,
dropping 3%, due to pricing and weak economy. Individual star performers included Bud Light Lime
and Budweiser American Ale, both introduced in 2008, helping to boost Anheuser-Busch's volume
well as gain share of the overall domestic beer market.
US BEER CATEGORY VOLUME
VOLUME IN MILLIONS OF CASES AND ROWTH
Growth
Volume
2007-2008
_________________________________________________
Regular Beer
621.6
-1.8%
Non-Alcoholic Beer
794.4
+1.4%
Super Premium
305.9
+2.9%
Imports
161.7
-2.5%
Craft Brands
42.8
+7.1%
Premium
715.8
-1.6%
Economy
435.8
+0.2%
Total Beer
1,422.8
-0.1%
Source: The Nielsen Company; Total US, Food/Drug/Liquor/Convenience Stores
Although premium beers took a hit, Coors and Coors Light continued to see success, thanks to ongoing
product and packaging innovation such as Coors Light Code Blue. The Nielsen numbers include
convenience stores, which took a hit in sales due to gas prices and the economy.
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In 2007, Miller Chill took the No.1 new beer brands spot, beating out 140 other new brands launched
in the US market that year. In 2008, new beer brand case sales totaled 4.9 million. New brand beer
case sales have more than doubled since 2004, when new beer brands accounted for 1.9 million cases.
It's clear that product innovation and line extensions are playing an increasingly important role in
boosting beer sales.
TOP 15 NEW BEER AND FMB BRANDS 2008
Total US Supermarkets
Dollar
Rank/Brand
(in millions)
___________________________________________________
1. Bud Light Lime
$93,539.4
2. Smirnoff Ice Strawberry Acai
$6,244.9
3. Budweiser American Ale
$5,598.9
4. Mike's Hard Pomegranate Lemonade $3,932.2
5. CM Parrot Bay Mojito
$3,489.1
6. Smirnoff Ice Light
$3,360.4
7. Bacardi Silver Mojito Mango
$1,933.9
8. Samuel Adams Irish Red
$1,623.5
9. New Belgium Variety Pack
$1,272.4
10. Blue Moon Variety Pack
$636.9
11. Mike's Cocktails Mojito
$500.4
12. Deschuters Green Lakes Organic Ale
$480.6
13. Mike's Cocktails Pomegranate Martini $428.1
14. Michelob Dunkel Weisse
$317.4
15. Michelob Pale Ale
$303.5
Source: Information Resources, Inc. (IRI)
TOP 15 BRANDS BY SALES
US Dollar Sales and Growth, 2008*
Dollar
Growth
Rank/Brand
(in millions)
2007-2008
_________________________________________________________________
1. Bud Light
$1,375.7
+4.4%
2. Miller Lite
$684.6
-0.5%
3. Coors Light
$663.2
+9.0%
4. Budweiser
$660.4
-1.7%
5. Corona Extra
$438.8
-2.5%
6. Heineken
$295.4
-0.2%
7. Natural Light
$272.5
+2.3%
8. Michelob Ultra Light
$204.5
+3.7%
9. Busch Light
$200.0
+4.0%
10. Miller High Life
$170.6
+6.6%
11. Busch
$154.8
+5.7%
12. Miller Genuine Draft
$138.0
-7.8%
13. Corona Light
$124.8
-0.9%
14. Keystone Light
$113.7
+17.5%
15. Bud Light Lime
$102.8
NA
Source: Information Resources, Inc. (IRI)
*Supermarkets, Drugstores and Mass Merchandise Outlets (excluding Wal-Mart)
Calendar Year 2008, Ending Dec. 28, 2008
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U.S. beer imports fell 19% in the first two months of 2009, one of the steepest declines in years and
the latest indication that the weak economy is hurting even hardy industries. Sales volume of
imported beer, generally more expensive than domestic brews, is slowing as Americans cut
discretionary spending. The beer industry's overall sales in the U.S. were down about 4% in the first
two months of this year compared with the same period in 2008.
Shipments from Mexico fell 13.5%, while those from the Netherlands dropped 26%, according to the
Beer Institute, a trade group in Washington, D.C. Those countries are the largest exporters of beer to
the U.S., and the declines partly reflect sluggish sales for Mexican brewer Grupo Modelo SA's Corona
Extra and Dutch brewer Heineken NV's flagship Heineken brand.
In 2008, imported-beer shipments fell about 3%, the first drop since 1991, when an increase in the
federal excise tax on beer curbed demand, according to industry newsletter Beer Marketer's Insights.
Shipments of Corona, the top-selling import, fell 4.6% in 2008, the second consecutive annual decline.
Shipments of Heineken, the No. 2
import, fell 5.5% in 2008, according to
Beer Marketer's Insights. The two
brands, which account for 46% of
import volume, may be losing some
marketing punch. Another reason
imports have declined is that some
beer distributors are shrinking
inventories to protect cash flow.
While Corona, Heineken Guinness and
Newcastle have slumped, four of the
top ten brands, including Stella Artois
and Dos Equis, have grown by double
digits. And the good news extends to
smaller brands. Craig Hartinger,
marketing manager for Washingtonbased importer Merchant Du Vin, said his company’s sales for brands like Samuel Smith and Orval
have been brisk as consumers continue to demand high-end imports.
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IV. Current Market Trends
Acquisitions
A trend, which began in Europe, has now reached the US. Acquisitions have begun in order for larger
brewers to increase their market share. Anheuser-Bush acquired Latrobe/Rolling Rock. Miller
acquired McKenzie River/Steele Reserve. Both have acquired additional import brands, which
demonstrate the "funnel" strategy. Funnel strategy seeks to bring additional imports into the
distribution system. Anheuser-Busch has utilized this strategy by working with InBev. (Source: WSJ
article "For Fans of European Beer Imports, a Dry Spell?", June 8, 2007).
Craft Brewing
Craft brewers are defined by volume produced and person or company ownership. Probably the most
accurate description is the "consumer" one. Consumers consider craft brewing to be beer produced in
very small batches (fewer than 2 million barrels annually). It appeals to boomers and millennials
because it provides taste and variety, which is demanded by consumers different brand and product
experience which is boosting the category. In response to the upswing in imported beers and demand
for quality, a surge in the craft beer industry
has become quite evident. The craft beer
industry is defined by four distinct markets:
brewpubs, microbreweries, regional craft
breweries, and contract brewing companies.
Brewpub: A restaurant-brewery that sells
25% or more of its beer on site. The beer is
brewed primarily for sale in the restaurant and
bar. The beer is often dispensed directly from
the brewery's storage tanks. Where allowed by
law, brewpubs often sell beer "to go" and /or
distribute to off-site accounts. Note: Brewers
Association re-categorizes a company as a
microbrewery if its off-site (distributed) beer
sales exceed 75 percent.
Microbrewery: A brewery that produces less
than 15,000 barrels (17,600 hectoliters) of
beer per year with 75% or more of its beer
sold off site. Microbreweries sell to the public by one or more of the following methods: the traditional
three-tier system (brewer to wholesaler to retailer to consumer); the two-tier system (brewer acting as
wholesaler to retailer to consumer); and, directly to the consumer through carry outs and/or on-site taproom or restaurant sales.
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Regional Craft Brewery: An independent regional brewery who has either an all malt flagship or has
at least 50% of its volume in either all malt beers or in beers which use adjuncts to enhance rather than
lighten flavor.
Contract Brewing Company: A business that hires another brewery to produce its beer. It can also be
a brewery that hires another brewery to produce additional beer. The contract brewing company
handles marketing, sales, and distribution of its beer, while generally leaving the brewing and
packaging to its producer-brewery (which, confusingly, is also sometimes referred to as a contract
brewery).
Given the 2008 craft brewing statistics, contract, microbrewery and brewpub markets have suffered a
decrease in volume while regional specialty grew in volume by 12.5%.
2008 Craft Beer Industry Production Volume
Regional craft breweries
5,749,556 bbl up 12.5%
Contract brewing companies
1,161,583 bbl down 5.0%
Microbreweries*
886,494 bbl down 8.4%
Brewpubs
696,132 bbl down 2.9%
* Does not include 9 regional craft breweries in 2008 that were in this segment in 2007.
Source: Brewers Association
As a whole, the craft beer segment grew by 7.2% in 2004, 9% in 2005, 11.7% in 2006, and 12% in 2007 (as
tracked by the Brewers Association, Boulder, CO). However, as the economy stalled, growth in the segment fell
in 2008 to 5.8% by volume.
Craft Beer Segment Growth
11,7%
7,2%
12,0%
9,0%
5,8%
2004
2005
2006
2007
2008
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Healthy Living
Another Trend to watch is health conscious dieting. Since the Department of Helath announced their
epidemic level obesity findings, diets like low-carb for example have rocketed to popularity. The beer
industry has not overlooked this concern and several companies, like Michelob (a division of
Anheuser-Busch) launched "Michelob Ultra" in 2002 where it quickly rose to popularity. Miller and
Coors brewing companies, although slow to market their light beer products as low-carb, have also
gone after this market segment and have experienced positive results. All beer, which is labeled as
"light" or "low-carb", must list the amount calories it contains. This leads us to the next trend,
nutritional label requirements.
Nutritional Labeling
To date, the Treasury Department's Alcohol, Tobacco Tax and Trade Bureau has not set requirements
for nutrition labels. (We will comment more on the responsibilities of this agency in Chapter VI of
this report). Now, consumer groups like the National Consumers League and the Center for Science in
the Public Interest have submitted a proposal for a uniform alcohol facts label. The proposal asks the
government to require information about alcohol content serving sizes, calories and ingredients. Some
spirits companies have already voluntarily provided this information on their labels and companies like
Budweiser have followed suit.
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V. Barriers to Entry
Competition
The beer industry within the U.S. reached a mature stage. Growth is relatively stable and the annual
expected growth is only 1.5%. There are currently five big dominating companies in the US market.
These include Anheuser Busch, SABMiller, Molson Coors, Crown Imports and Heineken USA.
Anheuser Busch has the largest market share in the US in terms of sales. Rivalry is enhanced as
competitors are seeking to steal market
share in order to face growth issues. In
such conditions, mergers between major
players are inevitable. One such merger
is the one between Miller and Molson
4,1%
2,8%
Coors which took place on July 1, 2008.
5,5%
Anheuser-Busch
As a result of this merger, Miller-Coors
captured 2nd place in the US market with
Miller Brewing*
11,5%
a 30% market share (third in the world).
Molson Brewing*
48,7%
The company hopes to increase
18,7%
Crown Imports
marketing power and cut costs thereby
becoming more competitive in today's
Heineken USA
marketplace.
US Beer Market Share by
Supplier 2007
*Merger of Miller Company & Molson Coors Brewing Company effective July 1, 2008
Source: Beer Handbook 2008
Advertising
European beer exporters risk being squeezed out of the US market as Americans increasingly turn
away from well-known European brands in favour of locally produced ‘craft’ beers. Sales of European
beers look to have stalled in recent years and analysis suggests that one reason for this could be the rise
of real ale brands, known as ‘craft’ beers in the States.
According to Euromonitor research analyst Roman Shuster, the problem for European exporters lies in
stale marketing, but he emphasises the need to differentiate between the two most popular European
beers consumed in the States - Corona and Heineken -and smaller European exporters. He told
BeverageDaily.com: “The shrinking share for imports is coming from the big time brands, Corona and
Heineken. It’s driven by the fact that they are not new, unique or different. Once they became top ten
brands, their difference was eroded.” On the other hand, he said that the appeal of craft beers is in the
variety being offered and, with more than 3000 craft breweries in the US, they have more opportunity
to stand out as something new. This is where he feels there is still opportunity for European beer
exporters to make their mark.
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Consumer Loyalty
The presence of established strong brands within a market can be a barrier to entry as it certainly is in
the case of the US beer market. European brewers need to differentiate their beers from the major
American brands through effective marketing. This of course takes a lot of money to accomplish as
marketing campaigns tend to be very expensive. None the less, educating American consumers is
extremely important in order to gain their loyalty and succeed in the marketplace.
Distribution
Distribution is critical to the success of a brewer. Exclusive agreements with key distributors or
retailers can make it difficult for other manufacturers to enter the US market as they limit access to
distribution channels. This particularly occurs when wholesalers, who serve the largest brewers , do
not carry other brewer's beer.
Access to Ingredients & Raw Materials
Craft brewers are at a disadvantage when it comes to both ingredient prices and availability. Adding to
their smaller size and smaller purchasing power, is the fact that craft beer requires a higher percent of
hop and malt ingredients. Whereas larger breweries have longstanding contracts with distributors for
ingredients - guaranteeing them a certain amount at a certain price - many craft brewers buy
ingredients on the open market, and thus literally pay the price when supplies are low.
Government Regulations
Requirements for licenses and permits raise the investment needed to enter a market, creating an
effective barrier to entry. Government regulations are widespread throughout the brewing industry. In
the US, the Alcohol and Tobacco Tax and Trade Bureau (TTB) regulates the brewing industry.
Brewers are also influenced by National, State and local governments. Government agencies regulate
the equipment and location used in the brewing process. The multiple levels of regulations imposed by
the government, serves as a deterrent to new entrants. Chapter VI of this report will analyze these
regulations in greater detail.
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VI. Import Regulations
US Customs & Tariffs
The journey of a beer import basically follows the following route: brewer → shipper (container/ship)
→ bonded customs warehouse (US Customs) → importer's warehouse → wholesaler's (distributor's)
warehouse → retailer → end consumer!
US Customs is the first level exports have to pass through on entry into the United States. The
importer of record will coordinate with a customs broker on the procedure for proper entrance,
documentation etc. The HTS (Harmonized Tariff Schedule) code, which has been assigned to beer
(22030000), can be accessed at http://dataweb.usitc.gov. Further article description and subheadings
can be found in chapter 22 of the Harmonized Tariff Schedule on the United States Trade
Commission's site: http://www.usitc.gov. Beer imports from countries considered to have NTR
(Normal Trade Relations) have 0 duty however they are subject to Federal excise tax.
Federal Regulations
The Alcohol and Tobacco Tax and Trade Bureau (TTB) implements and enforces a broad range of
statutory and compliance provisions to ensure that alcohol products are created, labeled, and marketed
in accordance with Federal laws and regulations.

Certificate of Label Approval
The Federal Alcohol Administration Act requires importers of alcoholic beverages to obtain
certificates of label approval prior to their beverages introduction into interstate commerce. The form
is available online at http://www.ttb.gov/forms/f510031.pdf. The importer must also complete and
file a pre-import application to ensure proper tax classification and that the products are manufactured
according to Federal laws and regulations. All labels of containers of alcoholic beverages bottled on
or after Nov. 18, 1989 are required to include the following health warning: Government Warning:
1) According to the Surgeon General, women should not drink alcoholic beverages during
pregnancy because of the risks of birth defects. 2) Consumption of alcoholic beverages impairs
your ability to drive a car or operate machinery and may cause health problems.

Mandatory Label Information
1. Brand Name
The brand name is used to identify and market a malt beverage. A brand name may not mislead the
consumer about the age, identity, origin, or other characteristics of the malt beverage.
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2. Class Designation
The brand label of a malt beverage must contain the class designation of the product. Examples of
class designations are beer, ale, and lager. Ale, stout, and porter are classes that must be fermented at
a comparatively high temperature. Products labeled "Wheat Beer" must be made from a fermentable
base that consists of at least 25% by weight malted wheat.
When a malt beverage is made with the addition of spices, fruit, honey, or natural flavors, it requires
specific labeling to indicate the class designation. These malt beverages must be labeled with a
statement of composition that reflects the base malt product and the added ingredients, unless
otherwise known to the trade under a particular designation. Examples of statements of composition
that might be seen on malt beverage labels include "Premium malt beverage with natural flavors,"
"Ale fermented with spices," or "Belgian-style Wheat Ale brewed with natural flavors." These
products must also bear a distinctive name. A malt beverage must derive at least 51% of its alcohol
content from the fermentation of brewing ingredients, with stricter limits for products with an alcohol
content of more than 6% alcohol by volume.
3. Name and Address
The name and address of the bottler or importer must appear on the brand label. However, the address
of the bottler's principal place of business may be used instead of the actual location where the
bottling took place. It is also permissible for a bottler/importer to use a duly authorized trade name in
place of its usual operating name.
4. Net Contents
The net contents of a malt beverage container must be stated in English units of measure (e.g., pints,
fluid ounces).
5. Alcohol Content
An optional statement of alcohol content expressed in percent by volume may appear on the label.
Federal regulations require the alcohol content to appear on the labels of flavored malt beverages that
derive alcohol from added flavors. However, some State laws have their own requirements with
regard to alcohol content statements.
The terms "Low Alcohol" may be used to describe a malt beverage containing less than 2.5% alcohol
by volume, "Reduced Alcohol" when it contains less than 2.5% alcohol by volume, and "NonAlcoholic" when it contains less than 0.5% alcohol by volume. The statement "CONTAINS LESS
THAN 0.5% ALC BY VOL" must appear with "NON-ALCOHOLIC" on the label.
Alcohol free and no alcohol can be claimed on the label if the malt beverage contains 0.0% alcohol by
volume. The alcohol content statement "0.0% ALC BY VOL" may not appear on the label unless the
malt beverage is labeled "ALCOHOL FREE".
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6. Health Warning Statement
By law, the following statement is required on all alcohol beverages containing 0.5% or more alcohol
by volume:
Government Warning: (1) According to the Surgeon General, women should not drink alcoholic
beverages during pregnancy because of the risk of birth defects. (2) Consumption of alcoholic
beverages impairs your ability to drive a car or operate machinery, and may cause health problems.
7. Country of Origin
Pursuant to regulations issued by the US Customs and Border Protection, a Country of Origin
statement is required on containers of imported malt beverages. Acceptable statements include
"Product of (name of country)" or "Produced/Brewed in (name of country)."
8. Lite/Light/Low-Carb
A malt beverage may be labeled with a caloric representation (such as "Light" or "Lite") as long as a
statement of average analysis appears on the label. This statement must include the amount per
serving of calories, carbohydrates, protein, and fat. In addition, a malt beverage may be labeled as
"Low-Carbohydrate" if the label includes a statement of average analysis and the product contains no
more than 7 grams of carbohydrates per 12-ounce serving.
9. FD&C Yellow #5 Disclosure
Any malt beverage containing FD&C Yellow #5 must have a disclosure statement “CONTAINS FD&C
YELLOW #5" on its label.
10. Saccharin Disclosure
Any malt beverage containing saccharin must have a disclosure statement
“USE OF THIS PRODUCT MAY BE HAZARDOUS TO YOUR HEALTH. THIS PRODUCT
CONTAINS SACCHARIN WHICH HAS BEEN DETERMINED TO CAUSE CANCER IN
LABORATORY ANIMALS” on its label.
11. Sulfite Declaration
Any malt beverage containing 10 or more parts per million (ppm) sulfur dioxide must have a
declaration statement “CONTAINS SULFITES” or “CONTAINS (A) SULFITING AGENT(S)” or
identification of the specific sulfiting agent(s) on its label.
12. Aspartame Disclosure
Any malt beverage containing aspartame must have a disclosure statement “PHENYLKETONURICS:
CONTAINS PHENYLALANINE” on its label.
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
Alcohol Beverages Labeled with Organic Claims
All labeling applicants with products made after October 21, 2002 that submit labels bearing an
organic reference to the Alcohol and Tobacco Tax and Trade Bureau (TTB) for approval must also
submit one or more of the following with their label application:
1. Organic crop certificate – certifies that the grapes, fruit, or other agricultural produce used
in the finished product have been organically produced to United States Department of
Agriculture (USDA)/ National Organic Program (NOP) standards. This document is all that
is required when an organic ingredients statement is the sole organic reference on the label.
2. Organic processor or handling operation certificate – certifies that the facility making the
finished product uses accepted USDA/NOP methods. When this document is required for
label approval it must be accompanied by proof of ACA preview (see #3 below). Labels
that only bear an organic ingredients statement do not need this document.
3. ACA preview - indicates that a USDA-Accredited Certifying Agent (ACA) has reviewed the
applicant’s organic alcohol beverage labeling itself, reconciled it with the applicant’s
certification, and verifies that the labeling is in compliance with USDA/NOP requirements.
This document must accompany the organic processor or handling operation certificate (see
#2 above) when that document is required. Labels that only bear an organic ingredients
statement do not need this document. The ACA Preview must show actual images of the
labels along with a stamp or signature of the ACA to verify that the product label complies
with the appropriate standard.
Organic certificates are documents that are issued by a USDA-Accredited Certifying Agent to farms
and processing operations that meet the standards of the USDA National Organic Program. A full list
of current ACAs is maintained by the Agricultural Marketing Service of the USDA.
For imported products, there are foreign companies that are accredited certifiers as well as foreign
producing and/or handling operations that are certified to USDA/NOP standards. Organic certificates
submitted to TTB must be in English or have a complete translation attached, and must specifically
state compliance with USDA/NOP standards as prescribed at 7 CFR part 205.
TTB will automatically reject/return for correction any label application that is submitted without
appropriate certifying documentation.
Samples of organic malt beverage labels are available at http://www.ttb.gov/pdf/beer.pdf.

Import License
Importers seeking to import beverage alcohol into the U.S. for commercial reasons must apply for an
Importer’s Basic Permit on TTB Form 5100.24 (PDF), “Application for Basic Permit under the
Federal Alcohol Administration Act”. This form, along with instructions on completion of the form, is
also available on TTB’s Importer Packet page. First-time importers must submit a contract or letter of
intent with foreign suppliers for the products intended for importation along with their application.
Please also note that importers must maintain and staff a business office in the United States in order to
obtain an Importer’s Basic Permit, and have applied for/obtained an Employer Identification Number
(EIN) from the Internal Revenue Service (IRS) before completing a Basic Permit application.
18

TTB Excise Taxes and Duties
Importers are responsible for all applicable Federal excise taxes and duties on beverage alcohol
products when removed from U.S. Customs and Border Protection (CBP) port of entry.
PRODUCT
TAX
TAX PER PACKAGE (usually
to nearest cent)
Barrel (31 gallons)
12 oz. can
Regular Rate
$18
$0.05
Reduced Rate
$7 on first 60,000 barrels for
brewer who produces less than
2 million barrels.
$0.02
Beer
$18 per barrel after the first
60,000 barrels.
Source: http://www.ttb.gov/tax_audit/atftaxes.shtml
State Regulations
Every state in the union regulates the flow of beer (alcohol) within their state and collects taxes from
the sale of alcohol. The website listed below is a link from the TTB which list all alcohol beverage
control boards in the United States, Canada and Puerto Rico.
http://www.ttb.gov/wine/control_board.shtml
State excise tax can vary significantly. A quick link to state beer excise tax rates can be found at the
website of the Federation of Tax Administrators: http://www.taxadmin.org/fta/rate/beer.html.
Excise Tax Rates are broken down by gallon / state and indicate whether there are additional taxes
that apply.
You may see that some states are labeled "Controlled State". This means that the state manages the
beverage alcohol industry. The state is responsible for licensing and retailing of all alcoholic
beverages. Any distributor you work with should have full knowledge of the state level taxes and take
care of any follow up required by the state.
Local Regulations
Local information can be accessed at the state liquor board's sites. There will be information listed on
dry counties and towns when pertinent.
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Importing Samples for Trade Shows and/or for Soliciting Orders
Samples of alcoholic beverages imported strictly for use at trade shows and/or for soliciting orders may,
under certain conditions, be imported without a certificate of label approval (COLA). Importers of such
samples may apply for a waiver from the COLA requirements from TTB in the form of a letter request.
The letter must include:
quantity of each alcohol beverage. “Type” for wine means identification as
“red wine”, “white wine”, “sparkling wine”, and/or identification with a varietal if the wine is
so labeled; for distilled spirits, the type means, for example, “rum,” “brandy,” “vodka,” etc., as
appropriate; for malt beverages, type means “beer,” “ale,” “porter,” etc., as appropriate.
 The country of origin of each product
 The brand name of each product
 The purpose for importing the samples (if for a specific event, include dates and location)
 The Federal Importer’s Basic Permit number
 The specific type and
The letter must also include a statement that the following conditions will be met:
 The products will be imported by the holder of a Federal Importer’s Basic Permit
 All applicable taxes and duties will be paid
 A sticker will be affixed to every container (bottle or box) which reads, “For Trade Show
(or
Sample) Purposes Only – Not for Sale”
label will be affixed to every container which bears the Health Warning Statement in
accordance with 27 CFR Part 16
 In the case of wine, an additional label will be affixed which reads, “Contains Sulfites”
 The products indicated in this letter will be in compliance with the labeling requirements above
prior to the product arriving at the U.S. port of entry.
A
A template of this letter is available for download – Template (MS Word).
You may mail or fax the letter request to the address or fax number below. Please do not mail a copy of a
waiver that has been already sent by fax or vice-versa.
Alcohol and Tobacco Tax and Trade Bureau
Attention: INTERNATIONAL TRADE DIVISION
1310 G St. NW, Suite 400W
Washington, DC 20220
Fax: 202-453-2970
Please note that is the responsibility of the importer to ensure that the product in question does not enter
into interstate or intrastate commerce without having received an approved Certificate of Label Approval
(COLA).
If you have any questions, please contact the International Trade Division at (202) 453-2260, or by e-mail
at ITD@ttb.gov.
VII.
US Importers of Belgian Beer (list available upon request)