USE OF THE TERM "DRAFT BEER" ON LABELS
AND IN ADVERTISING OF BEER.
To: Brewers, Wholesalers
and Importers of Beer,
and to others concerned:
Purpose. This Industry Circular is intended to advise
industry members of the guidelines observed by the Alcohol and
Tobacco Tax Division in administering and enforcing the labeling
and advertising provisions of the Federal Alcohol Administration
Act (27 U.S.C. 205(e)(f)) and regulations thereunder (27 CFR Part 7),
in relation to the use of such terms as "Draft Beer", "Draft Brewed",
"Draft Beer flavor", "Old Time on-tap taste", and like expressions
or terms.
Background. For purposes of this document, the term
"pasteurized" means the sterilization of the product through the
application of heat, irrespective of whether such pasteurization
occurs in bulk (prior to packaging) or after the beer has been
packaged. According to dictionary definition, the term "draft"
or "draught" means the "drawing from a cask or keg on order; as
beer on draught."
The Federal Alcohol Control Administration (by Ruling No. 88
dated April 20, 1935) took the position that
"The words 'keg' or 'draught' may be used as part of
the designation of class and type for domestic products
of the Brewing Industry in bottles, which are unpasteurized
and which otherwise conform to the trade understanding of
draught products."
This ruling was subsequently followed by the Federal Alcohol
Administration in connection with its administration and enforcement
of the Federal Alcohol Administration Act and was adopted by the
Alcohol and Tobacco Tax Division (then Alcohol Tax Unit) when it
assumed responsibility for that function in 1940. It has been
followed ever since. At the time this ruling was promulgated in
1935, domestic keg beer (beer served on draft) was not pasteurized,
thus requiring refrigeration for preservation; whereas bottled
beer was usually pasteurized for stability to insure reasonable
shelf-life. There was one recognized exception to this practice.
Unpasteurized beer was also marketed in quart and half-gallon
bottles under labels describing the product as "Draft Beer" and
with a cautionary notice to the effect that the beer must be kept
under refrigeration at all times. The F.A.C.A. ruling was made in
recognition of this practice.
Changes in brewing, packaging and marketing technology and
practices have since occurred. Today, methods other than pasteurization (for example, sterile filtration and aseptic filling procedures) are also used to assure adequate shelf-life. Flashpasteurization (in bulk) permits brewers to pasteurize keg beer
as well as bottled or canned beer. Thus, today, pasteurization
is no longer a distinguishing characteristic between beer served
on draft and beer available in the customary bottle or can. In
addition, the former clear distinction between beer in barrels or
kegs and beer in bottles has been confused by the use of metal
containers of various comparatively small sizes, including those
of gallon, gallon and a pint, and two and one-quarter gallon
capacities, with taps, spigots, or faucets attached for purposes
of drawing-off their contents.
Conclusion. In consideration of these changes in technology
and marketing practices, brewers, importers, and wholesalers of
beer are advised that the Alcohol and Tobacco Tax Division will
observe the following guidelines in administering and enforcing
the labeling and advertising provisions of the Federal Alcohol
Administration Act and regulations thereunder.
1. Beer packaged in a container (of a capacity of one
gallon or more) the contents of which are to be drawn
off through a tap, spigot, faucet, or similar device
may be described as "draft beer" whether the beer has
been pasteurized, sterile filtered and aseptically
filled, or unpasteurized and requiring refrigeration
for preservation.
2. Beer packaged in the usual and customary bottles
and cans may also be described as "draft beer" if the
beer is unpasteurized and requires refrigeration for
preservation, or if the beer has been sterile filtered
and aseptically filled (but not pasteurized).
3. Beer packaged in the usual and customary bottles
and cans may not be described as "draft beer" if the
beer has been pasteurized. However, no objection will
be made to the use of descriptive wording such as
"Draft Brewed", "Draft Beer Flavor", "Old Time On-Tap
Taste", or similar comparative expressions on such pasteurized beer, if the label or advertisement also
states that the beer has been pasteurized.
Provided,
that such statement as to its pasteurization appears
in proximity to the comparative expression in type
or printing of substantially the same degree of
conspicuousness.
Time for Compliance. It is expected that all brewers,
importers, and wholesalers of beer whose labels and advertising
do not now conform with the above guidelines (irrespective of
whether the labels in question have been approved in the past)
will appropriately revise such labels and advertisements as are
within Federal jurisdiction within a period of approximately
six months from the date of this circular but in no event later
than August 1, 1965. Any certificates covering labels not in
accordance with these guidelines should be surrendered for
cancellation not later than August 1, 1965.
Inquiries. Inquiries in relation to this circular should
be addressed to the Director, Alcohol and Tobacco Tax Division,
Internal Revenue Service, Washington, D. C. (Attention: CP:AT:B).

Harold A. Serr
Director, Alcohol & Tobacco Tax Division |