Distilled Spirits Council Statement on the Federal Government Shutdown
The federal government shutdown will have a significant and detrimental impact on the Tax and Trade Bureau (TTB), the lead federal agency responsible for permitting, regulating and collecting taxes on distilled spirits.
Distillers cannot legally operate in the United States without a TTB-approved permit, and no distilled spirits product can enter the marketplace without a TTB-approved label. Many spirits products must also have their formulas approved by TTB.
Before a beverage alcohol product can be bottled and distributed across state lines, it must receive a Certificate of Label Approval (COLA), as required under the Federal Alcohol Administration Act.
In 2023 alone, TTB received nearly 198,000 label applications and 27,000 formula submissions for beverage alcohol products.
Distillers, large and small, rely on timely approvals to remain competitive in the marketplace. Any disruption to these services will directly hinder distillers’ ability to bring new products to market, expand into new states, or make necessary label changes.
The fall season is a critical time for spirits product launches and holiday planning. The shutdown will result in delayed product launches, missed market opportunities, lost sales and tax revenue, and lasting harm to the wider hospitality industry, which contributes significantly to the U.S. economy.
The distilled spirits industry generated $6.7 billion in federal excise tax revenue last year and supports more than 1.6 million jobs nationwide.
We urge Congress to act swiftly to resolve the shutdown and ensure uninterrupted operations at TTB to protect American consumers, distilleries of all sizes, and the broader U.S. economy.
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