Navigating the Changing Landscape of Alcohol Beverage Labeling: Insights and Strategies for Manufacturers

            Alcohol beverage labeling is subject to complex regulations and consumer preferences. Organizations like the Alcohol and Tobacco Tax and Trade Bureau (TTB) in the United States are implementing regulatory changes for alcohol manufacturers that can complicate your business, while consumer demand for transparency on labels is increasing. Rising to these challenges requires technological enablement and tools to keep your collaborators across the company working together on compliance. So, what’s happening now that you need to know?

The Current Landscape

            Today's alcohol manufacturers are faced with varied global regulations, not only from country to country, but sometimes within regions. These may include:

• Ingredient disclosure requirements
• Allergen declarations
• Alcohol content labeling
• Packaging and labeling design

            Consumer demand for transparency makes alcohol labelling even more complex. And the landscape never stops changing. The most recent consumer demands for what they want on their alcoholic beverage labels include:

• Sugar content: Many health-conscious consumers prefer products with lower sugar content.
• Artificial additives: Consumers want to know if a product contains artificial colors, flavors, or preservatives.
• Sulfites: Some people are sensitive to sulfites, which are often used as preservatives in wine and other alcoholic beverages.
• Calories: Many consumers want to know the caloric content of alcoholic beverages to make informed choices that align with their dietary preferences.

In addition to these broader consumer shifts, market-specific regulations are continuously being updated and rolled out across the globe, impacting everything from Finnish aquavit to Chilean pisco.

Upcoming Regulatory Discussions and Their Implications

            Regulatory bodies worldwide are engaging in discussions regarding labeling requirements for alcoholic beverages, including ingredient and nutritional information. Some key developments include:

• The European Commission's ongoing review of the Food Information to Consumers Regulation (FIC), which may result in stricter ingredient and nutritional labeling requirements for alcoholic beverages.
• Australia and New Zealand have implemented stricter guidelines for alcohol labeling, including the requirement of pregnancy warning labels, which is now in effect after a three year transition period.
• The Alcohol and Tobacco Tax and Trade Bureau in the United States has proposed to amend regulations regarding the labeling of alcoholic beverages, with a focus on clear and accurate information. Proposed rules include:

      Calorie Labeling: The proposed rule would require calorie information to be displayed on the labels of all alcoholic beverages, enabling consumers to make more informed decisions about their calorie intake.

      Allergen Labeling: Under the proposed rule, alcoholic beverages containing any of the major food allergens would need to be clearly labeled to help consumers with food allergies avoid potentially harmful products. These include wheat, soy, eggs, milk, peanuts and others.

      Ingredient Labeling: The TTB has also begun preliminary rulemaking on mandatory ingredient labeling, which would provide consumers with detailed information about the ingredients used in alcoholic beverages. These include sugar, preservatives, colorings, enzymes, fining agents, yeast, stabilizers and acidifiers.

      Standardization of Serving Sizes: To facilitate easier comparison between different products, the TTB aims to standardize serving sizes for alcoholic beverages.

Strategies for Navigating Labeling Complexities

In the face of these challenges and ongoing regulatory discussions, alcohol manufacturers must adopt proactive strategies to maintain compliance:

1. Invest in Regulatory Expertise: Collaborate with regulatory experts and/or invest in regulatory compliance software to stay up to date on the latest developments and their implications for your business.
2. Streamline Data Management: Implement centralized data management systems that allow for efficient tracking and updating of product information, ensuring consistency across all labeling requirements.
3. Prioritize Transparency: Embrace the growing demand for transparency by providing clear and accurate ingredient and nutritional information, even in markets where it may not be legally required. This proactive approach will help build consumer trust and prepare your business for future regulatory changes.
4. Engage in Industry Dialogues: Participate in industry discussions and advocacy efforts to contribute your perspective and influence the development of regulations that benefit both manufacturers and consumers.

Regulatory Bodies and Standards

            The complexity of alcohol beverage labeling is further amplified by the various regulatory bodies and standards that govern different aspects of product information. Some key players include:

TTB (Alcohol and Tobacco Tax and Trade Bureau) Requirements

• The TTB requires disclosure of certain ingredients, recycling information, and alcohol content by serving, among other details.
• Upcoming voluntary disclosures include calorie, nutrient, and allergen content statements.

FDA Regulations for Food and Beverages

• The TTB works with the FDA to identify opportunities for alignment, particularly regarding flavored alcoholic beverages.

EU Regulations

• EU regulations necessitate labeling in 24 official languages and inclusion of a recycling symbol.
• Legal drinking ages can also vary across regions.

US vs. EU Standards

• Nutrition information: The US primarily uses calories, while the EU uses both kilojoules and calories.
• Label size variations: For instance, the US requires a 6mm recycling logo, while the EU requires a 10mm logo.

Ensuring Accuracy and Compliance with a Technology Solution

            To navigate these complexities and ensure accuracy, businesses can adopt technology solutions that enable:

• Exact regulatory information translations
• Managing labels for multiple markets and languages
• TTB approvals (flavor, formula, label)
• FDA compliance (does not approve formulas and labels)
• Certification and registration requirements in various markets
• Adapting to changing regulations and standards (e.g., gluten reporting, GMO-free, kosher)

            Product Lifecycle Management (PLM) software allows businesses to manage their ingredients, suppliers, and documentation, ensuring accuracy and quick updates for labelling. Modules like Trace One Regulatory Compliance include powerful databases of regulations, constantly being updated by experts, which you can use to automatically stay informed about regulatory changes and requirements

Technological Compliance Tools – the future is AI

            AI will soon be employed within Trace One Regulatory Compliance to monitor regulatory changes and assess their relevance. Other modules in Trace One Regulatory Compliance include ways to monitor and update labels for:

• Safety messages and cancer warnings
• Managing SKUs for packaging and different market regulations
• Leveraging labeling platforms for calculations
• Centralizing information for consumer questions (QR code) (e.g., filter aid, grain-based)

Marketing for popular ingredients

You can leverage labeling as a marketing advantage (e.g., gluten-free, GMO-free, low-carb) and employ strategies to minimize new SKU creation due to ingredient label regulation changes. In response to consumer demand for transparency, businesses can use labels or QR codes to communicate product information such as low calorie or low carb options. If you start now, you will be prepared for changes to come.

Proactive Preparation with Trace One Regulatory Compliance

            To stay ahead of alcohol labeling regulations, it’s time to leverage technology, standardize your data within your platforms, and adopt best practices. Request a demo today to see how you can use Trace One’s built-in workflows, approval collaboration, supplier connectivity, and regulatory libraries to provide the support you need to navigate these complexities and maintain compliance in a dynamic global market.