Month: April 2018

So You Want to Start a Brewery in Louisiana?

Posted on by Patrick Morin
Louisiana brewery

I’m sure you’ve spent time sipping on a cold pint with friends discussing launching your own brewery. Although the idea sounds good at the time, what you probably don’t know is that starting a brewery is no easy task. Navigating the laws and regulations alone would send most people running for the hills. However, there are some of you out there with the drive and passion for good beer and a determination to bring these tasty suds to the masses. So for those who’ve made it this far into my article, below I’ll outline the types of licenses need to start a brewery in Louisiana.

While breweries are regulated under both state and federal laws, for the purposes of this article I’ll just touch on the Louisiana specific requirements. Louisiana law allows a brewer to operate under either a brewer’s or microbrewer license.

Brewery License

A brewery license permits manufacturing an unlimited quantity of beer. Brewers may sell the beer they produce to licensed wholesalers, but may not sell directly to retailers. A brewery may also sell the beer it produces to consumers for on-premises consumption, but sales to consumers may not exceed either 10 percent of its monthly production or 250 barrels a month, whichever is greater. Sampling of beer on the brewery premises is permitted.

Microbrewery License

A microbrewer license permits manufacturing of up to 12,500 barrels of beer annually. Microbrewers may sell beer at retail for on or off-premises consumption, but may not sell beer to licensed wholesalers. A microbrewery may serve beer from other breweries, wine and even liquor. Sampling of beer on the brewery premises is permitted.

Key Differences between Licenses

The key differences between a brewer’s and microbrewery license is the amount of beer the establishment can produce, restaurant requirements and restrictions, and limitations on to whom you can sell.

Specifically, whereas a brewer’s license authorizes the production of an infinite amount of beer, a microbrewery license restricts production to 12,500 barrels per year. Both a brewery and microbrewery may be allowed to have a restaurant on its premises, however, food sales at a brewery may not exceed 25% of on-premises beer sales. No license permits the sale of beer directly to retailers and only breweries may sell to wholesalers. Unlike breweries which may only sell their own beer, microbreweries may sell beer from other breweries, wine and liquor.

If you need assistance in establishing or navigating the laws and regulations that effect your brewery, please contact us at Morsel Law.

FDA Steps Up Enforcement of Label Violations for Food Imports

Posted on by Patrick Morin

I previously posted an article discussing the importance of accurate labeling, especially for food importers. Labeling errors are one of the most common reasons products shipped to the United States are refused entry. If a product is found to contain a labeling violation, the FDA may deem the product “misbranded,” making it a prohibited act to distribute the product in the U.S. Once the FDA identifies one mistake on a businesses’ labels, the agency is more likely to stop this businesses’ products at the border in the future.

In March 2018, the FDA refused entry to over 150 food products attempting to enter the U.S. These food products from various countries throughout the world now cannot be sold in the U.S. in their current form due to labeling violations, so now importers are faced with a difficult business decision.

There are three things importers can do with the refused products. First, they may re-label each item with FDA compliant labels. This would require the importer to design, print and affix new labels to each item refused entry within 15 days’ of receiving the refusal notice. The tight time-frame to accomplish these tasks is very difficult for smaller single-item shipments and almost impossible for larger multi-item shipments due to the manpower it would take to complete the labeling, in addition to the cost a labeling specialist will charge to expedite revised labels.

Another option is to export the products back to their port of origin or another suitable country (e.g., Canada, Mexico). While the importer would retain ownership of the products, the additional shipping cost may exceed the value of the underlying products. The last option, and usually the option of last resort, is to destroy the products while under FDA supervision. This usually occurs when the cost to re-label or export exceeds the value of the products refused entry.

FDA previously announced their intention to focus on import violations, as demonstrated by the March refusal list and their commitment to enforcing labeling laws. In order to avoid the high costs and delays resulting from a labeling violation, it is best to have food labels reviewed for FDA compliance prior to shipping the products to the U.S. The cost of such reviews are minimal in comparison to the cost of fighting to get your seized products released or exported due to a labeling violation.

If your business is unsure whether a product label is in compliance with, or need assistance in adapting your label to meet, FDA regulations Morsel Law can help. Order your flat-free label review to make sure your food label is in compliance.