Wednesday, August 01, 2007

A SNAPSHOT OF WHAT A “SERVING PANEL” MEANS TO THE INDUSTRY

In answer to yesterday’s proposal by the TTB, Beam Global issued a statement that said its “agrees with the spirit of TTB’s efforts to provide consumers with more information.”

“Helping consumers make smart choices about alcohol is the underlying principle of our drink smart program,” said Chris Swonger, senior vp of corporate affairs.

THE DEFINITION OF A SERVING. With that said, we want to give you a little more background on the proposal, which is a clear victory for spirits but not all bad for beer and wine.

As we said yesterday, the TTB proposes that all alcohol beverage labels contain a “Serving Facts” panel, much like you find on the back of all food and non-alcohol drink products. The panel will include alcohol content by volume, serving size, servings per container, calories, carbohydrates, and fat and protein for a standard serving size. Alcohol companies can also voluntarily choose to include the ounces of pure alcohol per serving.

The TTB also put forth a definition of what it considers to be a “serving,” although they acknowledge it is not the final definition and can be changed.

Wine: For wines with an alcohol content of not more than 14 percent alcohol by volume, the serving size is 5 fluid ounces (about 148 milliliters). For wines with an alcohol content higher than 14 percent alcohol by volume and not more than 24 percent alcohol by volume, the serving size is 2.5 fluid ounces (about 74 milliliters).

Distilled spirits: For distilled spirits products containing not more than 10 percent alcohol by volume, the serving size is 12 fluid ounces (about 355 milliliters). For products containing over 10 percent and not more than 18 percent alcohol by volume, the serving size is 5 fluid ounces (about 148 milliliters). For products containing over 18 percent alcohol by volume, the serving size is 1.5 fluid ounces (about 44 milliliters).

Malt beverages: For malt beverages with an alcohol content of not more than 10 percent alcohol by volume, the serving size is 12 fluid ounces (355 milliliters). For malt beverages with an alcohol content higher than 10 percent alcohol by volume, the serving size is 5 fluid ounces (148 milliliters).

NOT EVERYONE AGREES, IN A NUTSHELL. Like we said, the TTB’s proposal is a victory for the spirits companies, and while wine and beer had a few wins, they don’t agree with everything.

The TTB’s proposal does not require alcohol beverages to include a graphic that features a shot of liquor equal to a can of beer equal to a glass of wine – something the wine and beer industry was against. At the same time, brewers in particular find fault with the “serving size” that the TTB is using for wine, spirits and beer, believing it doesn’t realistically depict the actual serving size of most spirits and wine drinks. Small brewers also argued that a serving panel would be too costly, but the TTB did not agree.

However, as we said yesterday, the final ruling will not be made for at least another three years, which should give the industry and the TTB more time to hash out a decision.