Distilled Spirits Council & Wine Institute Statement on TTB Kroger Letter

DISCUSWASHINGTON, D.C. – The Distilled Spirits Council and Wine Institute today issued a joint statement in response to the Tax and Trade Bureau’s (TTB) letter to the organizations regarding a program proposed by Kroger. At issue is whether the program violates the Federal Alcohol Administration Act and TTB regulations. “The Distilled Spirits Council and Wine Institute appreciate TTB’s response to our inquiry which, in combination with its separate ruling, strongly suggests that participating in the Kroger program would put participating suppliers at risk of violating their federal permits required to conduct business.” In addition, the Ohio Department of Commerce’s Division of Liquor Control stated in December 2015, that the Kroger program would violate the state’s tied house law and rules.“Given TTB’s response, along with the statement of the Ohio Division of Liquor Control, we believe that participating in the Kroger program is ill-advised because it may put a supplier’s basic permit to do business in the United States at risk.”

A copy of TTB’s letter is attached and can be accessed here:

TTB Letter to Distilled Spirits Council and Wine Institute

A copy of Ohio’s ruling can be accessed here: Ohio Department of Commerce Letter

The Distilled Spirits Council is the national trade association representing producers and marketers of distilled spirits sold in the United States.

Wine Institute is the public policy association of representing nearly 1,000 wineries and affiliated businesses throughout California who are responsible for 90 percent of U.S. wine production.