TTB and CBP are actively working to resolve the issue, with a fix anticipated by the end of April. In the meantime, importers should carefully review all entry summary line data and wait to file claims until the system reflects accurate information. Notably, the system will not allow use of the manual claims process where data appears available, even if inaccurate, making it especially important to delay submission. 

For questions related to alcohol beverage law, food labeling, regulatory compliance, or related matters, please contact Lindsey Zahn at Lindsey Zahn P.C. to learn more about how we can assist your business.

DISCLAIMER: This blog post is for general information purposes only, is not intended to constitute legal advice, and no attorney-client relationship results. Please consult your own attorney for legal advice.

In Episode 295: “Wine Law Essentials: Contracts, TTB, Social Media & More,” we dive into some of the most common legal pitfalls that wine brands and wineries encounter and how to avoid them. We covered the critical importance of well-crafted contracts, how to think about ownership and rights in agreements, navigating TTB labeling rules, compliance issues around producing non-alcoholic wines, and how to stay on the right side of social media advertising law. This conversational but practical episode was built around equipping listeners with the tools to reduce risk and protect their brands from costly compliance mistakes.

What makes the Sustainable Winegrowing podcast such a valuable resource is its focus on practical, actionable content tailored to the real-world needs of today’s wine industry. Whether you’re tuning in for cutting-edge viticulture science, sustainable vineyard practices, or business advice like we discussed, each episode connects industry professionals with insights that help strengthen their operations and long-term viability.

If you haven’t yet checked out the show, I highly recommend it — especially if you want to stay up to date on trends and issues shaping the future of sustainable winegrowing and winery operations.

In Episode 295: “Wine Law Essentials: Contracts, TTB, Social Media & More,” we dive into some of the most common legal pitfalls that wine brands and wineries encounter and how to avoid them. We covered the critical importance of well-crafted contracts, how to think about ownership and rights in agreements, navigating TTB labeling rules, compliance issues around producing non-alcoholic wines, and how to stay on the right side of social media advertising law. This conversational but practical episode was built around equipping listeners with the tools to reduce risk and protect their brands from costly compliance mistakes.

What makes the Sustainable Winegrowing podcast such a valuable resource is its focus on practical, actionable content tailored to the real-world needs of today’s wine industry. Whether you’re tuning in for cutting-edge viticulture science, sustainable vineyard practices, or business advice like we discussed, each episode connects industry professionals with insights that help strengthen their operations and long-term viability.

If you haven’t yet checked out the show, I highly recommend it — especially if you want to stay up to date on trends and issues shaping the future of sustainable winegrowing and winery operations.

For craft beverage entrepreneurs, this change is significant. Brand owners can now legally collaborate with third-party distillers, breweries, wineries, or cidermakers, allowing them to enter the market faster, scale efficiently, and leverage local production resources. This aligns New York with broader trends in other states that encourage small producer growth while supporting local agriculture and economic development.

The law also clarifies regulatory expectations and provides a clear path for contract production, giving both brand owners and producers confidence in compliance. Industry stakeholders will be watching closely as implementation unfolds, but for any new or growing brand, understanding and leveraging this new license is essential.

For craft beverage businesses in New York, this legislation is not just a regulatory update—it’s a strategic opportunity to expand production options and bring new products to market more efficiently.

For questions related to alcohol beverage law, food labeling, regulatory compliance, or related matters, please contact Lindsey Zahn at Lindsey Zahn P.C. to learn more about how we can assist your business.

DISCLAIMER: This blog post is for general information purposes only, is not intended to constitute legal advice, and no attorney-client relationship results. Please consult your own attorney for legal advice.

1. TTB Modernization and Digital Filings

This year, the Alcohol and Tobacco Tax and Trade Bureau (“TTB”) continued to push toward modernization, including enhancements to online label approvals and formula submissions. While the TTB has not fully automated all filing processes, brands that embraced digital tools found significant efficiency gains. However, delays in label approvals and formula reviews persisted in some categories, emphasizing the need for early planning when launching new products or making formula changes.

2. Increased Focus on Non-Alcoholic and Low-Alcohol Beverages

The market for low- and non-alcoholic beverages continued to expand in 2025, and with it came new regulatory and labeling considerations. The FDA and TTB are increasingly scrutinizing claims related to non-alcoholic and functional beverages, including health-oriented statements, sugar content, and ingredient labeling. Brands entering this space must carefully navigate both agencies’ requirements to avoid enforcement actions or delays in market entry.

3. State-Level Compliance Complexity

State regulations for alcohol distribution, sales, and labeling remain complex and varied. Several states introduced new brand registration or reporting requirements, particularly in the areas of direct-to-consumer shipping and e-commerce. Brands that do not maintain active state-level registrations risk penalties or disrupted distribution, highlighting the need for ongoing compliance oversight across multiple jurisdictions.

4. E-Commerce and Direct-to-Consumer Expansion

Direct-to-consumer (“DTC”) sales continued to grow in 2025, fueled by e-commerce platforms and third-party integrations. While DTC offers exciting revenue opportunities, brands must carefully manage licensing, shipping restrictions, and tax compliance. Legal issues around third-party fulfillment, data use, and liability for shipping alcohol remain a top concern for e-commerce operators.

5. Advertising, Social Media, and Compliance Scrutiny

As social media platforms remain a primary marketing channel, TTB and state regulators have signaled continued oversight of alcohol advertising claims. Claims about health benefits, alcohol content, and sourcing are being scrutinized more closely. Brands that collaborate with influencers or run digital campaigns need to ensure all content meets both federal and state advertising standards. For more information, see the Industry Circular 2024‑1: Use of Social Media in the Advertising of Alcohol Beverages. Beyond TTB guidance, the Federal Trade Commission (“FTC”) has increased scrutiny of influencer marketing, especially regarding health claims or misleading product representations.

6. Mergers, Acquisitions, and Market Consolidation

2025 saw continued consolidation in the spirits and wine sectors. Legal diligence in acquisitions, licensing transfers, and intellectual property rights became more critical than ever. Brands planning expansions or partnerships must ensure that all regulatory approvals and filings are up-to-date to avoid costly delays or enforcement issues.

7. Enforcement Trends

TTB has maintained an active enforcement posture in 2025, particularly around labeling, market compliance, and missing operational reports and/or excise tax filings. Brands are increasingly advised to maintain robust compliance programs and documentation to mitigate audit or enforcement risk.

Looking Ahead to 2026

As we move into 2026, brands should remain focused on compliance, digital readiness, and proactive legal planning. Early engagement with legal counsel can help mitigate risks in labeling, distribution, advertising, and direct-to-consumer sales, allowing brands to capitalize on growth opportunities while avoiding costly missteps.

For questions related to alcohol beverage law, food labeling, regulatory compliance, or related matters, please contact Lindsey Zahn at Lindsey Zahn P.C. to learn more about how we can assist your business.

DISCLAIMER: This blog post is for general information purposes only, is not intended to constitute legal advice, and no attorney-client relationship results. Please consult your own attorney for legal advice.

During the episode, Ria and I dive into the origin of Pommeau in northwestern France—typically produced by blending apple brandy with fresh apple juice—and discuss how American cideries, distilleries, and other craft producers are beginning to construct domestic interpretations. The conversation also touches on labeling considerations, TTB classification issues, and unique and emerging regulatory questions as interest in Pommeau grows in the U.S.

What makes this interview especially meaningful is Ria’s thoughtful, well-researched approach. Cider Chat has long been one of the most trusted, community-building platforms in the cider world. Ria has an incredible gift for elevating both technical and cultural conversations around cider, apple growing, orchard stewardship, and the cidermakers behind it all. Her interviews feel like sitting down with a knowledgeable guide who genuinely wants to further understand—and help others understand—the legal concerns behind cider.

For those interested in cider or the evolving landscape of Pommeau in America, this episode is a must-listen. Ria’s curiosity and generosity as a host make the discussion not only informative but enjoyable and accessible, even when tackling complex regulatory topics.

I was previously a guest on Cider Chat’s Episode 85: Cider Law. 

I am deeply appreciative of the opportunity to join the show and highly encourage anyone passionate about cider—professionally or personally—to explore Cider Chat’s archive. It is one of the richest and most welcoming resources in the industry.

Listen to the episode and explore more from Cider Chat at ciderchat.com.

Below are seven compliance considerations that producers, importers, brand owners, and other industry members should consider before bringing a non-alcoholic beverage to market.  

1. “Non-Alcoholic” Doesn’t Always Mean Zero Alcohol

Under federal regulations, beverages containing less than 0.5% alcohol by volume (ABV) can generally be marketed as “non-alcoholic.” But that doesn’t mean they contain no alcohol. Products labeled as “alcohol-free” or “zero alcohol,” however, typically must be 0.0% ABV. This distinction matters—and mislabeling can trigger enforcement actions or consumer complaints.

2. Many Non-Alcoholic Products Are Considered “Food,” Not “Alcohol”

Because NA wines and spirits fall below 0.5% ABV, they are generally regulated by the FDA rather than the TTB. That means different rules for ingredient disclosures, nutrition facts, allergen statements, and claims. Even if a product looks alcoholic (like an NA spirit or wine), its regulatory home likely sits under FDA’s food labeling framework.

3. But Some NA Beverages Still Trigger TTB Oversight

If the base product is produced at a bonded winery or brewery—and then dealcoholized—the TTB may still regulate production records, formula requirements, and operational rules, even if the final product is under 0.5% ABV. Label approval (COLA) might not be required, but production compliance absolutely still can be.

4. Health and Wellness Claims May Be a Risky Area

“Hangover-free,” “stress relieving,” “detoxifying,” “boosts immunity,” or “reduces anxiety” can be red flags and could potentially be risky for brand owners or producers. Even softer language—like “supports relaxation”—may require scientific substantiation and careful framing.

5. Nutrition Facts Panels Are Not Optional

Traditional alcohol beverages typically do not require Nutrition Facts Panels (unless you voluntarily opt to provide a Serving Facts or Average Analysis), but non-alcoholic beverages typically do.

Products falling within FDA’s labeling jurisdiction generally must include the following on the label:

• Nutrition Facts

• Ingredients list

• Allergen disclosure

• Statement of identity

• Net contents

• Name/address of the responsible party

If you’re used to alcohol labels, this can be a big shift.

6. Importing NA Products Isn’t Always Straightforward

Even though NA beverages aren’t classified as “alcohol,” they may still require:

• Prior notice through FDA

• Verification of food facility registration

• Ingredient documentation

• Compliant English labels

Imports resembling alcoholic beverages may also receive added scrutiny from Customs and Border Protection, regardless of ABV.

7. The FTC Is Watching Your Marketing Claims

Because the category is trendy—and sometimes marketed as “health-forward”—the FTC may be attentive to advertising claims that could mislead consumers. Influencer partnerships are subject to the same rules: clear disclosures are mandatory.

The non-alcoholic beverage category is dynamic, innovative, and fast-growing—but it’s not the regulatory free-for-all some imagine it to be. Whether you’re launching a new NA brand, extending an existing product line, or importing dealcoholized beverages, understanding the compliance landscape is essential to avoid missteps.

For questions related to alcohol beverage law, food labeling, regulatory compliance, or related matters, please contact Lindsey Zahn at Lindsey Zahn P.C. to learn more about how we can assist your business.

DISCLAIMER: This blog post is for general information purposes only, is not intended to constitute legal advice, and no attorney-client relationship results. Please consult your own attorney for legal advice.

Impacts on TTB

• With the lapse in appropriations, TTB has suspended non-excepted operations.
• Key tasks that will not be processed during the shutdown include COLA approvals (Certificates of Label Approval), beverage and non-beverage formula reviews, permit applications, laboratory services, and processing of new permit-related requests.
• Some functions will continue as “excepted” under the TTB’s contingency plan — which may include processing tax returns with remittances, data security to avoid loss of in-process data, protection of federal property, and criminal enforcement.
• Even though industry members can still electronically submit new COLA, formula, or permit applications, these won’t be reviewed or approved until the TTB resumes full operations. This inevitably means that, the longer the federal government is shutdown, the greater the line will be for these applications to be processed.
• When operations restart, expect a backlog, possibly increased processing times, and the need to triage or withdraw duplicate or unnecessary filings to ease the volume.
• View TTB’s shutdown plan here.

Impacts on FDA

• The FDA’s contingency plans allow for continued operations in certain essential areas, particularly those addressing imminent threats to human life or public safety (e.g., food recalls, import entry screening, adverse event monitoring).
• Many routine inspections or compliance oversight activities will be suspended, unless they are “for cause” (e.g., in response to safety concerns).
• Because the FDA retains a large portion of its workforce under “exempt” or “excepted” status, many safety-critical operations will likely continue.

Effect on State Agencies

• Importantly, state alcohol or food authorities are generally not funded by the federal government, so their operations should not be directly affected by the federal shutdown.
• Thus, state-level permit applications, renewals, inspections, or compliance work can continue as usual, independent of TTB or FDA delays.

What Alcohol Beverage Companies Can Do Right Now

• Front-load your submissions while the shutdown is fresh — prepare any upcoming label, formula, or permit applications for current needs and submit them as the line will only grow as the shutdown progresses.
• Review pending files — make sure your permits, COLAs, and formulas are complete, accurate, and free of errors. Review TTB’s list of Allowable Revisions to Approved Labels to see if you can make a change to a previously approved label without needing to submit a new COLA application.
• Avoid submitting nonessential or speculative filings during the shutdown to prevent unnecessary backlog.
• Maintain compliance — even though agency reviews may pause, the regulatory obligations (labeling requirements, excise tax filings, operational reports, recordkeeping, etc.) continue.
• Plan for delays — build time cushions into your launch and market plans, recognizing that federal approvals may be significantly delayed once the shutdown ends.
• Monitor the agencies’ messages and resumption notices — once the shutdown ends, TTB and FDA will issue updates on timelines.

While federal agency delays may feel disruptive, this period is also an opportunity to get organized, refine compliance materials, and plan strategically for when operations resume. If you have questions about how the shutdown may affect your business or need guidance navigating next steps, please don’t hesitate to reach out to our firm for an initial consultation.

For questions related to alcohol beverage law, food labeling, regulatory compliance, or related matters, please contact Lindsey Zahn at Lindsey Zahn P.C. to learn more about how we can assist your business.

DISCLAIMER: This blog post is for general information purposes only, is not intended to constitute legal advice, and no attorney-client relationship results. Please consult your own attorney for legal advice.

This kind of event is rare but extremely serious. Beyond the safety hazard and brand damage, there are legal and regulatory lessons for any wine company (or prospective wine brand). Below are some general considerations that wine brands may wish to keep in mind when evaluating potential risks and compliance obligations.

Product Safety & Quality Controls

• Bottling and packaging specs matter. Sparkling wines like Prosecco are bottled under pressure due to the presence of CO₂. The bottle strength, closure, cork, tooling, and caging (wire cage over cork) must all be able to withstand that pressure.

• Physical testing. Before scaling, winemakers should consider testing batches under stressed conditions (e.g., heat, vibration, and transport) to make sure bottles don’t fail.

• Traceability. Keeping good records is essential: which bottling line, which batch, what closure type, cork supplier, etc. In a recall scenario, the issue must be traced to the source.

Recall Risk & Liability

• Recall obligations. Under federal U.S. law, government agencies such as the FDA (for matters including food safety) or sometimes state authorities may require recalls. Even when not required, voluntarily recalling is often the product of duty of care and avoiding worse liability. Speak with your legal counsel to discuss possible redress.

• Product liability exposure. If consumers are injured (e.g., glass shards from bottles) or property damage occurs, there may be liability. Insurance can help—but insurance often depends on you having followed best practices and documented them. Cases like these are a good reminder to speak with and seek the advice of your insurance professional to determine what coverage may be required for your company and/or ensure if your current coverage is sufficient.

Contracts with Suppliers, Co-Packers, and Distributors

• Supplier contracts for materials should require specifications (for example, the pressure rating of bottles, quality of cork/closures), warranties, sample testing, and indemnity if defects from supplied components cause loss. Which party is responsible in the instance a part is faulty?

• Co-packer or bottling agreements likewise should define responsibilities clearly—who is responsible for packaging failures, who bears recall costs, etc.

• Distributor or retailer contracts may have clauses about product safety, returns, claims, and insurance coverage. Review with your counsel to ensure you understand any and all culpabilities.

Protect Your Brand Before a Recall Happens

The Costco Prosecco recall is a stark reminder that even one misstep in production, labeling, or quality control can trigger serious legal, financial, and reputational fallout. Protecting your brand means more than crafting great wine — it requires strong contracts, regulatory compliance, and a plan for managing risk.

For questions related to alcohol beverage law, food labeling, regulatory compliance, or related matters, please contact Lindsey Zahn at Lindsey Zahn P.C. to learn more about how we can assist your business.

DISCLAIMER: This blog post is for general information purposes only, is not intended to constitute legal advice, and no attorney-client relationship results. Please consult your own attorney for legal advice.

If your winery is considering producing or importing no- or low-alcohol wines, here are the key regulatory points to understand.

TTB Oversight and the “Dealcoholized Wine” Category

The Alcohol and Tobacco Tax and Trade Bureau (“TTB”) regulates wine that contains 0.5% alcohol by volume (“ABV”) or more. Dealcoholized wine is typically produced by fermenting a wine to completion and then removing most of the alcohol through processes such as vacuum distillation or reverse osmosis.

• If the finished wine product contains 0.5% ABV or higher, it is still regulated by TTB and production must be done so on a bonded winery premises (i.e., at a TTB permitted winery).

• If the finished wine product contains less than 0.5% ABV, it is no longer under TTB’s jurisdiction as far as permitting is concerned. Instead, the U.S. Food and Drug Administration (“FDA”) will regulate the product as a conventional food product. Note that certain dealcoholized wine products may still trigger a type of TTB permit depending on the process used to remove alcohol, even if the final product is under 0.5% ABV. 

This threshold distinction is critical: even if you start with wine, the finished dealcoholized version may not be considered “wine” under federal law.

Labeling Requirements

In the U.S., labeling requirements for wine depend not just on whether the product is dealcoholized, but also on its alcohol content:

• TTB Jurisdiction (≥7% ABV): Wines at or above 7% ABV fall under the TTB’s labeling jurisdiction. These products require a Certificate of Label Approval (“COLA”) before they can be sold in interstate commerce. TTB labeling rules mandate information such as brand name, class/type designation, alcohol content, net contents, health warning statement, bottler/importer information, and sulfite declaration (when applicable). 

• FDA Jurisdiction (<7% ABV): Wines containing less than 7% ABV are regulated by the FDA for labeling purposes. FDA does not require COLAs, but it does require compliance with food labeling regulations. See generally 21 CFR Part 101. This means a label must typically include a nutrition facts panel, standard of identity, ingredient statement, allergen disclosure (if applicable), net contents, and name/place of business. These rules differ significantly from TTB’s framework and may require wineries to redesign labels when producing low-ABV wines.

Importantly, terms such as “alcohol-free” and “non-alcoholic” have specific regulatory meanings. “Alcohol-free” can only be used if a product contains 0.0% ABV (i.e., no detectable alcohol). A wine with less than 0.5% ABV but not entirely free of alcohol should instead use “alcohol-removed” or “dealcoholized.”

This jurisdictional split often surprises wineries: a product marketed as “low-alcohol wine” at 6.9% ABV will have FDA food-style labeling requirements, while the same product at 7.1% ABV is fully under TTB’s wine regulations. Stay alert and informed if your company is considering producing a lower alcohol wine.

Distribution and State-Level Nuances

Even if a product contains less than 0.5% ABV, state laws may still treat dealcoholized wine differently. Some states allow direct-to-consumer shipping of non-alcoholic beverages with fewer restrictions, while others classify anything derived from wine under alcohol control boards.

Because of these discrepancies, wineries should carefully research how each state defines and regulates dealcoholized products before expanding distribution.

Federal Tax Implications

Federal excise taxes apply only to wine products that contain 0.5% ABV or more. Wines below this threshold are not subject to the federal excise tax, but state and local taxes may still apply depending on applicable laws. Wineries should also consider sales tax implications.

Practical Takeaways for Wineries

1. Know your product’s ABV. The 0.5% line determines whether or not the product must be produced on TTB bonded winery premises.

2. Plan labels early. If under FDA, be prepared to add full nutrition and ingredient statements.

3. Check state rules. Direct-to-consumer shipping and retail sales rules vary widely for non-alcoholic wines.

4. Market carefully. Avoid health claims that could trigger regulatory scrutiny.

5. Seek guidance. The overlap of federal and state rules makes compliance more complex than it first appears.

If your winery is considering no- or low-alcohol products, contact us at info@zahnlawpc.com. Our firm can guide wineries and alcohol beverage businesses through the evolving regulatory landscape, including dealcoholized and low-alcohol products. From determining whether your product falls under TTB or FDA oversight, to label review, distribution compliance, and state-by-state analysis, we help ensure your launch is both successful and compliant.

For questions related to alcohol beverage law, food labeling, regulatory compliance, or related matters, please contact Lindsey Zahn at Lindsey Zahn P.C. to learn more about how we can assist your business.

DISCLAIMER: This blog post is for general information purposes only, is not intended to constitute legal advice, and no attorney-client relationship results. Please consult your own attorney for legal advice.

Background

The case originally arose when Chicago Wine Co., an out-of-state retailer, challenged Indiana’s restrictions on direct-to-consumer wine shipments. The district court granted summary judgment in favor of Indiana, and the Seventh Circuit affirmed that decision. Judges Easterbrook and Scudder issued separate concurring opinions.

Key Takeaways from the Seventh Circuit Decision

1. State Authority Under the Twenty-first Amendment
   The court emphasized that the Twenty-first Amendment grants states broad regulatory authority over alcohol distribution within their borders. This ruling reaffirms that states may impose physical presence requirements on alcohol retailers without running afoul of the Commerce Clause.

2. Consistency with Other Circuits
   The Seventh Circuit’s decision aligns with rulings from the Third, Fourth, Sixth, Eighth, and Ninth Circuits, all of which have upheld similar state alcohol laws restricting out-of-state shipments.

3. Impact on Out-of-State Retailers
   Out-of-state wine retailers wishing to ship to Indiana must comply with the state’s regulatory framework. The denial of rehearing en banc signals that the court is unlikely to revisit the case, meaning Indiana’s restrictions remain firmly in place.

4. Broader Implications
   This case may influence challenges in other states with restrictive alcohol distribution laws. Industry members should carefully review compliance with state alcohol laws before attempting direct-to-consumer shipments.

Conclusion

The Seventh Circuit’s decision underscores the continuing importance of understanding both federal and state alcohol regulations, particularly for retailers and brands exploring direct-to-consumer sales. Compliance with these laws is essential to avoid legal exposure and ensure smooth operations across state lines.

For guidance on state-specific alcohol laws, direct-to-consumer shipping, or other regulatory issues affecting your wine, spirits, beer, or cider business, contact us at info@zahnlawpc.com. Our firm can help navigate complex alcohol distribution regulations and support your compliance efforts.

For questions related to alcohol beverage law, food labeling, regulatory compliance, or related matters, please contact Lindsey Zahn at Lindsey Zahn P.C. to learn more about how we can assist your business.

DISCLAIMER: This blog post is for general information purposes only, is not intended to constitute legal advice, and no attorney-client relationship results. Please consult your own attorney for legal advice.