by Mindy Abern

Join us for a Zoom discussion of these issues and more that are facing the food and beverage industry in this time of pandemic. on May 8th at 12pm Central (r.s.v.p. info below)

Updates in the Alcohol Beverage and Hospitality Industry

The laws and regulations governing the alcoholic beverage and hospitality industry have long been maligned by some as being arcane, old fashioned, overly restrictive, or out-of-touch with modern consumer trends. Following prohibition, the need for a strong regulatory framework and compelling social and societal concerns gave rise to a number of restrictions on how, when, where, and in what quantities alcoholic beverages could be sold, and many of these laws have changed very little over the years. For the last few years in particular, there has been a lot of talk about potential for change. Little did any of us expect the real change that was to come.

Last year’s US Supreme Court decision Tennessee Wine and Spirits Retailers Association v. Thomas was a highly anticipated development closely watched by all of the industry. What would it ultimately mean for the three-tier system, and for the industry as a whole? The answer is still unfolding, and a lot of us became ad hoc constitutional law scholars, explaining and discussing lofty issues like the potential impact of the dormant commerce clause with our clients and industry colleagues. We all began to watch and wait to see what the long-term implications for the industry might be.

Then, March happened, and our collective short-term worlds were rocked. Everyone in these industries, including the attorneys, are now adapting to this “new normal”.

The amount of near-term economic change coming about in this era of COVID-19 cannot be understated. Regardless of what industry you are in, all of you have seen it firsthand. Those in the alcoholic beverage or food and hospitality industries are also feeling it firsthand. Overnight, business models and customer behaviors have changed radically, as have many of the laws and regulations that underlie the retail side of the industry. Doing what they can to try to support food and beverage retailers in this unprecedented time, while trying to strike a balance with other societal interests, many states have now temporarily relaxed restrictions regarding how and where customers can buy and receive alcoholic beverages. The temporary changes have been swift, but are widely welcomed during this unprecedented time.

Updates in the Food Packaging and Labeling Industry

Similarly, the food packaging and labeling industry has seen rapid regulatory flexibility in response to the pandemic. To help facilitate the distribution of food during this time of crisis, the FDA is providing flexibility on nutrition labeling requirements of certain packaged food. The FDA also published a Constituent Update saying that it will not object if restaurants sell packaged food without a (typically required) “Nutrition Facts” label, subject to certain caveats. While the FDA will still require certain information (like ingredients and allergens) on packaged food, it is offering this flexibility to help strike a balance between regulatory health requirements and societal interests. The FDA also announced that they will not focus on enforcement actions for the updated Nutrition and Supplement Facts labels requirements following the listed January 1, 2020 compliance date.

While enforcement of some of the laws and regulations in these highly regulated industries has been relaxed temporarily, others have not. And what about enforcement? New questions seemingly pop up every day on how to navigate these new developments, and how retailers and industry members should react.

Join Us to Discuss

Join us on May 8th at 12pm Central for a Zoom meeting to discuss some of these new developments in an informal setting. Our team will provide a brief overview of some of the recent legal changes in the alcoholic beverage, hospitality and food packaging and labeling industries. We’ll touch on a few key topics, including: how state ABC agencies are temporarily adjusting requirements to help on and off premise retailers stay afloat; how the food and beverage industries are finding creative ways to sell and market their products; how long-standing rules like tied house laws will work in this new reality; and how food product labeling and packaging is being impacted and some legal issues to keep in mind.

We look forward to meeting up with you on May 8th at 12 pm Central. Please r.s.v.p. to ebongiovanni@infolawgroup.com for a personal invitation. Please note that space is limited.