The American Distilling Institute submitted the following comment to the TTB regarding updates to trade practice regulations on July 2, 2023. While our comment was informed by member feedback, we encourage all ADI members to submit their own public comments via the TTB’s website.
Director Amy Greenberg
Regulations and Rulings Division
Alcohol and Tobacco Tax and Trade Bureau
1310 G Street NW, Box 12
Washington, DC 20005
Re: Docket No. TTB-2022-0011
Dear Director Greenberg,
The American Distilling Institute (ADI) is grateful for the opportunity to submit a comment on Docket No. TTB-2022-0011 Notice No. 216: Consideration of Updates to Trade Practice Regulations, on behalf of our more than 1600 members. Founded in 2003, ADI is the oldest and largest and community of small-batch, independently owned distilleries in the United States, and it is our mission to promote and defend the art and enterprise of craft distilling. We respectfully submit the following comment.
We support President Biden’s Executive Order to promote competition in the American economy and the market for distilled spirits. It is our position that updates to the federal trade practice regulations are not currently needed. The consensus among our surveyed members is that the current federal trade practice regulations are not adequately enforced and should be increased before new regulations are considered. We also believe that the current assessment of fines for violators has simply become a calculated cost of doing business. We believe that fines should be sized appropriately so that it discourages future violations, consider the actual harm done in the market, and the market size of the violator. We also believe that repeat offenders should face escalating consequences such as the temporary suspension of their federal permit.
Our members are committed to abiding by all federal trade practices and competing fairly in the market. We believe that fair and proportional enforcement of current trade practices would help to end the anti-competitive practices that protect and enhance the market position of some of the most well-funded companies in this market. As we stated in our comment dated August 17, 2021, it is our position that best solution for increasing competition and removing barriers to new entrants into the market is to modernized the three-tier system for the 21st century, by allowing distillers intra- and interstate direct-to-consumer shipping, self-distribution in their home state, permits for farmers markets and other temporary events, as well as removing limits for on-premise cocktail sales, and off-premise bottle sales.
Sincerely,
Erik Owens, President of the American Distilling Institute
