Letter to the Hon. Mary Ryan, Acting Admin. of the Alcohol and Tobacco Tax and Trade Bureau - Schumer reveals: Southern Tier wineries are missing out on hot new canned wine trend & barrels of business due to onerous can-size limits; senator calls on Feds to cut through bureaucratic red tape & crack open canned wine production in the Southern Tier

Letter

Dear Acting Administrator Ryan,

I write to request the Alcohol and Tobacco Tax and Trade Bureau (TTB) take action to first eliminate certain Standards of Fill regulations that now block our wine producers from reaching new customers by selling wine in popularly desired cans while also reducing costly labeling regulations that burden producers with unintended red tape.

Wine sold in cans is an increasingly growing consumer market, but current TTB's Standards of Fill regulations hamstring U.S. wine producers by prohibiting them from selling wine in popularly-sized cans including 12 oz (355 ml) and individual 8.4 oz (250ml) cans. While TTB regulations allow beer to be sold in any sized can, TTB regulations will only permit wine and cider above 6.9% ABV to be sold in less popular can formats such as the 375 ml (12.7 oz) can and only permit the popular 250 ml cans to be sold in a 3 or 4 pack, but not individually. These can size restrictions are limiting producers ability to sell their product, and in turn to hire additional employees, and grow their businesses. For example a recent wine consumer survey by WICResearch.com concluded "the total wine market will grow in order to satisfy consumer preferences," if TTB permitted sales of wine-in-a-can in a single 250ml size, which the survey revealed is the single-serve size most popular with consumers. New York wineries have sought to not only use single 250 ml cans but also allow use of 12 oz (355 ml) cans because they are less expensive and easier to source than the 12.7 oz (375ml) can. While beer and soft drink producers enjoy a ready supply of 12 oz cans, New York wineries have reported having to wait up to six months to source 12.7 oz (375 ml) cans because they are less commercially available. Moreover, 375 ml cans are often more expensive and require wine producers to buy-in-bulk which is often cost-prohibitive for smaller wine producers.

In Proposed Rulemaking 182, the TTB is now considering whether to eliminate these can size restrictions and permit wine to be sold in any sized can greater than 50 ml or at a minimum to eliminate the restriction against using popular-sized cans including the 12 oz (355ml), individual 8.4oz (250 ml) cans, and others. I strongly support removing these size restrictions so that wine and cider producers can use popular sized cans and urge the TTB to finalize and implement these changes.

Similarly, 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. 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 product. However, the current myriad patchwork of regulations create unintended confusion and often costly delays as wineries wait on receiving TTB approvals to produce or sell and new product. I therefore support streamlining and modernizing these regulations and urge the TTB to finalize and implement these revisions.

Thank you for your consideration of this matter.

Source