In the State of Florida, two different licenses are available to make beer and malt beverages for commercial sale. Which beer manufacturing license is right for you? Factor Production Brewery License (CMB License) Brewpub License (CMBP License) What does the license let you do? Make beer and malt beverages and deliver it to licensed distributors. Make beer and malt beverages...
Continue ReadingWhat is a Convertible Promissory Note? A Convertible Promissory Note (“CPN”) is an option for companies that want to build capital without issuing stock or ownership units immediately. An investor, instead of receiving stock or another form of equity upon investment, would receive a CPN. The CPN is a form of debt that converts into equity (typically, preferred stock...
Continue ReadingThe Florida ABT’s 1998 Declaratory Statement tells that licensed alcoholic beverage retailers can pay manufacturers for the use of their trademark under certain terms. Friday’s Wanted to Create the Jack Daniel’s Grill In Declaratory Statement 98-01, the ABT was asked whether Friday’s Hospitality Worldwide Inc. (“Friday’s”, operators of the same restaurant chain at the time), a alcoholic beverage vendor,...
Continue ReadingNearly all actors in the alcoholic beverage industry are subject to federal advertising regulations administered by the Trade Investigations Division of the Alcohol and Tobacco Tax and Trade Bureau (TTB). Separate regulations cover beer (27 CFR Part 7), wine (27 CFR Part 4), and distilled spirits (27 CFR Part 5), and there are a number of TTB administrative rulings...
Continue ReadingUnder the Federal Alcohol Administration Act’s unfair competition and unlawful practices statute (27 US Code Section 205), alcohol suppliers are prohibited from selling alcohol to wholesalers and retailers on consignment. The TTB recently released Industry Circular 2022-1, which discusses the TTB’s position that long payment terms may violate the federal anti-consignment law. Federal Law Prohibits Anti-Competitive Arrangements Under Section...
Continue ReadingFDA Prior Notice Provides Key Information about Imported Alcohol The US Food & Drug Administration (FDA) requires that a Prior Notice of Imported Foods be filed before any food product–including alcoholic beverages–be imported into the United States. The FDA Prior Notice is required regardless on the quantity of products being imported. For instance, a FDA Prior Notice is required...
Continue ReadingMONTHLY HIGHLIGHTS The Data: The Florida Breweries Report reflects data published by the Florida ABT, which is available online here. The ABT monthly publishes the taxpaid sales for each brewery and distributor. Unfortunately, the ABT does not publish breweries’ sales to distributors. This means that the Florida Breweries Report reflects only breweries’ taxpaid sales, which are generally made in its taproom....
Continue ReadingNo new beverage legislation comes out of Florida’s 2022 legislative session. All eight of the proposed bills that might have changed Florida’s alcoholic beverage industry failed to advance to a full vote of the Florida Senate or House of Representatives. In most cases–such as HB 715/SB 924, which would reduce the number of persons required to be served to...
Continue ReadingMONTHLY HIGHLIGHTS The Data: The Florida Breweries Report reflects data published by the Florida ABT, which is available online here. The ABT monthly publishes the taxpaid sales for each brewery and distributor. Unfortunately, the ABT does not publish breweries’ sales to distributors. This means that the Florida Breweries Report reflects only breweries’ taxpaid sales, which are generally made in its taproom....
Continue ReadingThis article is Part 2 of our two-part series on the termination of beer franchise rights in Florida. For Part 1, see Termination of Florida Beer Distribution Agreements. Florida’s Beer Franchise Statute (Fla. Stat. s. 563.022) recognizes that a Florida distributor acquires a valuable franchise right when it enters into a distribution agreement with a beer suppler (whether brewery...
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