January 27, 2012
Greetings! We hope you are having a thoughtful and inspired week! This edition includes our recognition of Andong Soju and Gyeongju Beopju as geographical designations for distilled spirits from the Republic of Korea, a refresher on trade practices, and information on brewery alternating proprietorships.
In the TTB Newsletter, we compile the top TTB news of the week and other helpful information about the Bureau and the Federal alcohol and tobacco laws and regulations we enforce. Please send any questions or comments to the Executive Liaison for Industry Matters at IndustryLiaison@ttb.gov and/or StateLiaison@ttb.gov. |
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TTB Issues Ruling to Confirm Andong Soju and Gyeongju Beopju as Geographical Designations for Distilled Spirits
This ruling confirms our recognition of "Andong Soju" and "Gyeongju Beopju" as geographical designations for distilled spirits and that they must be manufactured in the Republic of Korea, in accordance with the laws and regulations of the Republic of Korea governing the manufacture of those products. TTB published the ruling at the request of the Office of the U.S. Trade Representative (USTR) to formalize the provision in the United States-Korea Free Trade Agreement in which the United States agreed to recognize those products as distinctive products of Korea. In the agreement, Korea reciprocated by recognizing Bourbon and Tennessee Whisky as distinctive products of the United States.
Trade Practices Under the Federal Alcohol Administration Act (FAA Act)
Federal law (27 U.S.C. 205(a)-(d)) defines certain unlawful alcohol beverage trade practices and provides various exceptions for permissible practices by alcohol beverage producers, importers, wholesalers and retailers. The objective of these trade practice provisions is to protect against unfair competition in the alcohol beverage industry. Trade practices addressed in the FAA Act include exclusive outlets, "tied-houses," commercial bribery, and consignment sales.
Read more about the FAA Act Trade Practices
Contacts at TTB on Trade Practices
Brewery Alternating Proprietorships
WHAT IS AN ALTERNATING PROPRIETORSHIP?
An "alternating proprietorship" is a term used to describe an arrangement in which two or more brewers take turns using the physical premises of a brewery.
Generally, the proprietor of an existing brewery, the "host brewery," agrees to rent space and equipment to a new "tenant brewer." Alternating brewery proprietorships allow existing breweries to use excess capacity and give new entrants to the beer business an opportunity to begin on a small scale, without investing in premises and equipment.
Industry Circular 2005-2 provides guidance to brewers on how to qualify for and operate as an alternating proprietorship.
Read more about Alternating Brewery Proprietorships