Co-Packing Resources:
Regulatory View:
What is hard seltzer?
In the US, hard seltzer is generally treated as beer by the Federal government, even though a consumer would never say that seltzer and beer are the same thing. Note that this article does not cover spirits-based drinks, which are usually referred to as RTD (“Ready-To-Drink”) cocktails, or any wine products.
TTB Beer vs. IRC Beer
Hard seltzers can fall into two broad regulatory categories, referred to as TTB (Alcohol and Tobacco “Tax and Trade Bureau”) Beer and IRC (“Internal Revenue Code”) Beer. The following table summarizes a few of the differences between TTB Beer and IRC Beer:
| Industry Term: | TTB Beer | IRC Beer |
|---|---|---|
| Regulatory/Legal Term | "malt beverage" | "beer" |
| Primary Legal Basis | Federal Alcohol Administration Act, 1935 | Internal Revenue Code of 1986 |
| Required Ingredients | Malted barley and hops | Malt or a malt substitute |
| Alcohol Level | Not specified | >0.5% ABV |
| Federal excise tax applies? | Yes | Yes |
| Labeling Rules Authority | TTB only | Both TTB and FDA |
| Nutritional information required on label? | No, in most cases | Yes, in FDA format |
| Requires formula approval? | Yes, in most cases | Yes |
The post-Prohibition Federal Alcohol Administration Act was written with a definition of “malt beverage” that differs from the definition of “beer” in the Internal Revenue Code of 1986.
The FAA Act governs the labeling rules of the TTB and defines a “malt beverage” as being brewed from both malted barley and hops. The IRC gives the TTB authority around excise tax collection and defines “beer” as (a) greater than 0.5% alcohol by volume and (b) brewed with malt or a substitute for malt. The TTB resolved this difference in a 2008 Ruling, leading to the distinction between TTB Beer and IRC Beer.
TTB Beers are exactly like a traditional beer as far as labeling rules, label approval, and formula approval are concerned. For brand owners, this means that listing nutritional information on the package is not required unless you are making a specific nutritional claim such as “light seltzer” or “low in carbs”.
IRC Beers on the other hand, are treated more like a soda or other beverage with alcohol in it. This means that FDA labeling rules apply, so a nutritional panel is required. The TTB also requires elements such as the government warning text, but there is no label approval process from the TTB.
Examples of TTB Beer:
A seltzer blended from an alcohol base containing both barley and hops
Craft beer, such as an IPA, barrel aged beer, or sour beer
Domestic and import lager
A low-alcohol or non-alcoholic beer
Taxes and Formula Registration
In both categories, the TTB levies excise tax on the product and a product formula must be approved by the TTB. This formula is kept private by the government and must be filed under your co-packer’s Brewer’s Notice with the TTB. To file the formula, your co-packer will need access to ingredient specification sheets and the Flavor Ingredient Data Sheets (FIDS) supplied by your flavor vendor.
In some instances, your co-packer can reference another supplier’s approved formula number instead of submitting a detailed ingredient list and specification sheet. For example, if you purchase your seltzer base from a third party (whose recipe would be considered a trade secret), then that recipe can be incorporated by referencing the formula number, instead of detailing their ingredients and process.
The Nations’ Approach
As an experienced seltzer co-packer, The Nations is very familiar with the TTB rules and regulations around beer and seltzer. We include a label formula evaluation phase in every project and we advise customers on any concerns or issues we see. That this article and in-project feedback are guidelines based on our experience with TTB formula and label approval, but they are not a substitute for advice from an attorney familiar with your state and Federal alcohol regulations.