DtC Shipping Essentials: Brand Label Registration

Brand label registration is an essential part of the process of selling alcohol. And while many suppliers are aware of these requirements for three-tier distribution, they can often overlook them when it comes to direct-to-consumer (DtC) shipping.

Alcohol labels, whether on a bottle, can or keg, have lots of information that is highly regulated, both at the federal level and within the individual states. There are rules about both what information is required on a label, such as the brand name and identification of the supplier, and information that is prohibited, such as specific health claims. To monitor whether an alcoholic beverage’s label is proper, state and federal regulations require each label to be approved and registered with the relevant regulatory agency for it to be sold.

Remember that DtC shipments are still a sale of alcohol, meaning that it is a type of sale that falls under the brand label registration requirements. Whether you are entering into DtC shipping for the first time or are expanding into new states, ensure that you abide by all applicable brand label registration requirements.

We’ve compiled the basics of brand label registration to help you understand how to best maintain compliance as you work in the DtC shipping world.

The TTB and brand label registration

The Alcohol and Tobacco Tax and Trade Bureau (TTB) is the primary organization that polices beverage alcohol brand labels. The TTB designates what must be on a label and what cannot be on a label. With some notable exceptions, the TTB reviews every beverage alcohol label prior to sale.

Certificate of Label Approvals (COLAs) ensure that suppliers and producers comply with federal regulations when marketing and designing alcohol labels. Under the Federal law, most alcoholic products being distributed across state borders must first be registered with the TTB and receive a COLA before they can be sold.

There are some exceptions to COLA requirements. Wine products with an ABV of 7% or less are excluded entirely from the COLA process, and beers that are sold only in the states where they are produced are not required to get a COLA. However, since DtC shipments often are made into other states, that makes them subject to the COLA requirement. As such, it is important for DtC shippers to make sure they have all necessary COLAs for their products before they begin shipping.

State brand label registration requirements

Most states also have their own brand label registrations, which are often required for three-tier distribution. While most states require brand registration to sell to local wholesalers, many of them waive the requirement for DtC shippers. However, there are plenty of states that still do need a brand registration prior to shipping, so DtC shippers should make sure to look into any such requirement when they are entering a new state. State brand label registrations typically require providing a COLA (except of course when a COLA is unavailable) and paying a fee.

Often, an existing registration for three-tier distribution will count for a DtC registration. So generally, there is no need to double up. However, this is not the case in all states. DtC shippers should be particularly aware of Wyoming and Louisiana , both of which permit wineries to sell a product in either the DtC or wholesale channels but not both. In these states, if a product is registered for sale in the three-tier market (or the control market, in the case of Wyoming) then that product cannot also be shipped DtC.

Check out our full list of state-by-state rules for wine distribution within the three-tier system.

Brand label registration exceptions for retailers

Retailers should note that they are generally exempt from brand registrations as they lack the proper ownership or authorization needed to register brand labels. However, there are some states that require retailers to have written authorization from the brand owner to ship a product direct to-consumer. Retailers shipping alcohol DtC should be aware of states that require them to get authorization from brand owners to conduct DtC shipping in that state. For example, Virginia requires retailers to have written permission from brand owners to ship their products DtC in Virginia.

Brand label registration requirements are just one more thing for a business to recognize and research into as they expand their DtC shipping presence.