Senate Minority Leader Charles Schumer (D-N.Y.) urged Alcohol & Tobacco Tax & Trade Bureau to allow flexibility in Standards of Fill so wine producers can sell wine in traditional can sizes.
Under current TTB regulations, wine can only be sold in less popular can formats such as the 12.7 oz can, while the popular 12 oz can is prohibited and the popular 8.4 oz can is only allowed to be sold in groups of 3 or 4, and not individually.
Additionally, Schumer called on TTB to reduce costly wine labeling restrictions that burden local producers with unintended red tape. Schumer said if TTB would remove these restrictions, wineries could see even further growth.
“Even though it has a $4.8 billion impact on New York, TTB is leaving New York’s wine industry hanging on the vine, with outdated rules and restrictions stopping it from reaching its potential. As canned wine continues to become more and more popular, there’s just no good reason why wine producers, like Fox Run Vineyards, shouldn’t be able to capitalize and sell their products in the most popular-sized cans, especially when studies have shown that lifting these unnecessary restrictions would lead to even further economic growth,” said Schumer.
“Similarly, the burdensome and Byzantine TTB label approval process is bogging down our Rochester-Finger Lakes producers and stopping new products from hitting the shelves in a timely manner. That’s why I’m saying to the TTB: cut through this bureaucratic red tape, take these regulations that aren’t helping anybody and can ’em, and uncork the full potential of the Rochester-Finger Lakes Region.”
Schumer explained that while wine sold in cans is an increasingly growing consumer market, even though TTB regulations allow beer to be sold in cans of any size, TTB regulations only permit wine and hard cider above 6.9% Alcohol by Volume (ABV) to be sold in less popular can formats such as the 12.7 oz can and only permit the popular 8.4 oz cans to be sold in a 3 or 4 pack, but not individually.
Schumer argued that these can size regulations are tightly restricting producers’ ability to sell their product, and in turn, restricting their ability to hire new employees and grow their businesses.
For example, Schumer pointed to a recent wine consumer survey by WICResearch.com, which concluded “the total wine market will grow in order to satisfy consumer preferences,” if TTB were to permit sales of wine-in-a-can in a single 250ml size, which the survey also revealed is the single-serve size most popular with consumers.
Similarly, in comments submitted to TTB, WineAmerica urged the bureau not only to allow the sale of single 8.4 oz cans, but also allow the sale of 12 oz cans, because they are less expensive and easier to source than the 12.7 oz cans.
Schumer explained that while beer and soft drink producers enjoy a ready supply of 12 oz cans, New York wineries have reported to him they have to wait up to six months to source 12.7 oz cans because they are less commercially viable.
Moreover, Schumer said that 12.7 oz cans are often more expensive and require wine producers to buy-in-bulk, which can be cost-prohibitive for smaller wine producers.
Schumer said that in its Proposed Rulemaking 182, TTB is now reviewing whether to eliminate these can size restrictions and allow wine to be sold in any can sized greater than 50 ml, or at a minimum, examining whether to eliminate the restriction against using popularly-sized cans including the 12 oz cans and individual 8.4 oz cans, among others. Schumer announced his strongest possible support for the lifting of these regulations, so Fox Run Vineyards and other Upstate wine and cider producers can sell their products in more traditional packaging.
Schumer explained that Fox Run Vineyards and Three Brothers Winery & Estates are two Rochester-Finger Lakes Region wineries who can some of their wine and want to can more of it, but are hampered by the current federal canning restrictions.
Fox Run Vineyards canned a selection of its wine last year, but was forced to use the larger 12.7 oz cans, which made it more expensive than if the company could have used the standardized 12 oz cans. Fox Run Vineyards had also hoped to sell individual 8.4 oz cans, due to their popularity, but was prevented by the TTB restrictions.
Similarly, last year, Three Brothers Winery had to wait for 6 months before receiving a shipment of empty 12.7 oz cans. Unlike the ubiquitous 12 oz cans, the 12.7 oz cans are significantly less commercially viable as well as more expensive for producers. The result of these restrictions is that most Upstate wineries are unable to take full advantage of the hot wine-in-can market, preventing growth and expansion.
Schumer also called on TTB to adjust wine labeling requirements, so as to decrease the regulatory hurdles producers have to jump over. Schumer said that under Notice 176, TTB is considering changes to modernize and streamline its labeling and related regulations to improve understanding of TTB’s regulatory requirements and make compliance easier and less burdensome for industry members.
Schumer said these regulatory approvals are required prior to nearly every pivotal step in operating a winery, including before a winery can make a new product, or label and sell a new product.
Schumer argued the current myriad patchwork of regulations creates unintended confusion and, oftentimes, costly delays as wineries wait on TTB approvals. Schumer urged TTB to do everything in its power to streamline and modernize these regulations, starting with the finalization of Notice 176.