What Should I Know About Certificate of Label Approvals (COLAs)?

Lizzy Connolly
June 21, 2022

Beverage alcohol suppliers and producers selling in the United States typically must obtain Certificate of Label Approvals (COLAs) from the Alcohol and Tobacco Tax and Trade Bureau (TTB) before product distribution. This ensures that suppliers and producers are compliant with federal regulations regarding the design of their alcohol labels. (Additionally, most states have their own registration requirements that must be met before products can be sold.)

But what do suppliers and producers need to know about COLAs? How can you ensure that your product can compliantly make it to market?

Here are key highlights about COLAs and what it takes to get them approved.

certificate of label approvalKnow what’s required

• An item’s brand name, area of production, type of product and volume of the container’s content must be included.
• The Government Warning must be included and in a specific format.
• The regulations can vary for beer, wine and distilled spirits.

 

clipboard with check mark

Know what’s prohibited

• Health claims or disparaging remarks about competitors’ products are not allowed.
• Neither are references to other intoxicating substances nor claims about the “strength” of the product’s alcohol content.

 

Register with the TTB

• The TTB reviews labels to ensure they incorporate all necessary information and exclude prohibited messaging.
• If labels are not approved, they are sent back to be fixed.

 

Check for new and revised labels

• If a supplier updates a label, that may require applying for a new COLA. The TTB has allowable revisions that can be done without getting a new COLA, saving time and effort.
• Old labels may need to be surrendered and not used again in commerce.

 

Understand exceptions and exemptions

• There are some exclusions to the COLA process, such as wines with an ABV less than 7% and malt beverages that do not meet the FAA Act definition of beer (containing water, malted grains and hops).
• Certain products are subject to the FAA Act but are exempt in certain circumstances from needing a COLA, such as beer that is only sold in the state where it is produced.

Take Action

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

Sign up for Email Updates

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

Author

Lizzy Connolly

Share this post

North America ShipCompliant
April 17, 2024
3 Reasons Craft Beer Drinkers Want DtC Shipping

While only 11 states and D.C. allow direct-to-consumer (DtC) beer shipping, more than half of Americans ages 21+ (51%) would purchase more craft beer if they were able to have it shipped directly to their home. In this blog, we discuss the top three reasons why craft beer drinkers want beer sent directly to them […]

North America ShipCompliant
April 17, 2024
States Are Looking to Expand DtC Spirits & Beer Availability

2024 is shaping up to be a banner year for legislative efforts related to the direct-to-consumer (DtC) shipping of beverage alcohol. While these proposed laws span a range of legal issues, the primary driver of the bills is expanding access to the DtC market for beer and spirits producers. Currently, 47 states and D.C. permit […]

North America Tax Information Reporting
March 22, 2024
Market Conduct Annual Statement Reminders and More

On the second Wednesday of each month, Sovos experts host a 30-minute webinar, Water Cooler Wednesday, to share the latest updates on statutory filings. In March, Sarah Stubbs shared information about the many filings due after March 1, from Market Conduct Annual Statements to health supplements for P&C and life insurers writing A&H businesses and […]

North America ShipCompliant
March 21, 2024
How Producers Can Build a DtC Shipping Market

Direct-to-consumer (DtC) shipping has become one of the leading sales models for businesses of all sizes and in all markets. The idea of connecting directly with consumers is notably attractive, as it helps brands develop a personal relationship and avoid costly distribution chains. Yet, for all its popularity, DtC is often a hard concept to […]

North America ShipCompliant
March 20, 2024
Key Findings from the 2024 DtC Beer Shipping Report

This March, Sovos ShipCompliant released the fourth annual Direct-to-Consumer Beer Shipping Report in partnership with the Brewers Association. The DtC beer shipping report features exclusive insights on the regulatory state of the direct-to-consumer (DtC) channel, Brewers Association’s perspective and key data from a consumer preferences survey. Let’s take a deeper dive into some of the […]