Beer Label Fundamentals

Alex Koral
October 27, 2022

While beer brand labels are a great way to set your product apart with clever marketing and design, there are rules brewers must follow while designing them. Beer labels, whether on a bottle, can or keg, have lots of information that is highly regulated, both at the federal level and by individual states. We’ve compiled the basic information required by both the federal and state levels to help maintain compliance as you begin the label design process.

Federal regulations

Beer labels are regulated by federal law under both the Internal Revenue Code and the Federal Alcohol Administration Act. These rules on what must be included and what is prohibited from being on a label are in turn managed by the Alcohol and Tobacco Tax and Trade Bureau (TTB). By law, beer labels must contain the following information:

  • The name the product is being marketed under.
  • The name and address of the producer or importer.
  • Information regarding the class or type of alcohol.
  • The size of the container and its alcohol content.
  • A government warning statement outlining health risks associated with consuming.

All of this information must be formatted to match the TTB’s standards.

What information can a label not provide? There are a few hard-and-fast rules. Beer labels are prohibited from containing the following content:

  • False statements that could mislead consumers.
  • Disparaging remarks or images that demean a competitor.
  • Geographic terms that give a false impression of the geographic source of the product.
  • Government iconography that gives the impression that the product is sponsored by any governmental body.
  • Untrue health claims and false endorsements.

COLAs

Certificate of Label Approvals (COLAs) ensure that suppliers and producers comply with federal regulations when marketing and designing alcohol labels. Under federal law, most alcoholic products  must first be registered with the TTB and receive a COLA before they can be sold. For beer products, though, a COLA is only required when they are sold in interstate commerce.

Obtaining a COLA is a relatively straightforward process. Perform a self-review of your label to ensure it meets all the TTB’s Beverage Alcohol Manual (BAM) guidelines, then submit your COLA through COLAs Online and wait up to two weeks for a response. It’s important to note that your COLA will not be “rejected” per se, but if it’s not approved immediately, it will be sent back to give you the opportunity to correct any errors before reapplying. The top reasons for a returned COLA are missing or improperly formatted required information, discrepancies between license information listed on the label and what is in the TTB’s records, and missing formulas.

If at any point you make changes to your label, you may be required to apply for a new COLA. The TTB has allowable revisions that can be completed without getting a new COLA, so be sure to double check before re-applying to save you time and effort.

State regulations

In addition to the federal label requirements, most states have their own brand label registrations. State brand label registrations typically require providing a COLA and paying a fee. Even if you don’t sell interstate, your beer must meet the requirements of the Internal Revenue Code. States require registrations for several reasons, including to better monitor franchise rules, to identify what’s on store shelves and to verify proper labelling.

Taking the time to understand federal and state-level beer labeling requirements is critical to compliance. Planning ahead and strictly adhering to TTB guidelines is the best way to start your beer labeling process.

Take Action

Ready to start the process for certificate of label approvals (COLAs)? Find out how Sovos ShipCompliant can help.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Alex Koral

Alex Koral is Senior Regulatory Counsel for Sovos ShipCompliant in the company’s Boulder, Colorado office. He actively researches beverage alcohol regulations and market developments to inform development of Sovos’ ShipCompliant product and help educate the industry on compliance issues. Alex has been in the beverage alcohol arena since 2015, after receiving his J.D. from the University of Colorado Law School.
Share this post

North America Tax Information Reporting
September 21, 2023
Sovos Education Returns to Orlando with Statutory Accounting CPE

If you didn’t join us in D.C. or San Francisco earlier this year, you won’t want to miss one last opportunity in 2023 to take part in live continuing education. Sovos Education is returning to the Orlando area for a full week of statutory accounting CPE opportunities and we’re hoping to see you there. Sun […]

North America ShipCompliant
September 20, 2023
Prevent Consumer Confusion Around Hard Versions of Soft Drinks

A trend of the last few years has been the surge in new products entering the beverage alcohol market, from hard seltzers to RTD cocktails, along with the entry of well-established, traditionally non-alcoholic brands, like Hard Mountain Dew and Simply Spiked. While the growth of hard soft drinks is great for consumers, who benefit from […]

North America Tax Information Reporting
September 19, 2023
Form 1042 (and 945) Returns Electronic Filing Requirement Updates

We’ve previously discussed how the IRS released final electronic filing requirements for information returns effective with 2023 returns. One of those key changes is that businesses can no longer submit Form 1042 withholding tax returns on paper starting with tax year 2023 filings and beyond. But how will that actually impact businesses for the upcoming […]

EMEA VAT & Fiscal Reporting
September 18, 2023
Intrastat Thresholds: Current Exemption Values

Intrastat thresholds are value thresholds which decide if companies in an EU Member State qualify to file a return to tax authorities, based on their intra-community trading. These thresholds change annually, prompting businesses to conduct an annual recalculation to know their obligations. This blog contains all the Intrastat reporting thresholds for 2023, as well as […]

EMEA VAT & Fiscal Reporting
September 18, 2023
Intrastat Guide: Reporting, Numbers, Thresholds

Intrastat is an obligation created in 1993 that applies to certain businesses that trade internationally in the European Union. Specifically, it relates to the movement of goods – arrivals and dispatches – across EU Member States. The requirements of Intrastat remain similar across the EU, though certain Member States have implemented rules differently. As a […]