Evoking Prohibition Era Tactics, Lawmakers Look to Keep ‘Dry’ Powdered Booze Off Shelves

Earlier this month, the U.S. Alcohol and Tobacco Tax and Trade Bureau (TTB) granted label approval for a new product that immediately caused a firestorm across national media outlets. The product? Powdered alcohol, or palcohol, a powdered substance manufactured in several distinct flavors meant to mimic spirits or cocktails and only requires the addition of water or your favorite mixer to create a refreshing alcoholic beverage on the go. Predictably, the outrage was immediate and intense, leading TTB to rescind approval only, claiming it was an error that approval was granted in the first place. However, this does not mean that the product will not be put on the market eventually, it simply requires the manufacturer, Lipsmark LLC, to reformulate the products packaging and subsequently re-apply to the Alcohol Trade Bureau for approval. Should the product be re-approved, further outrage is to be expected.

Powdered alcohol has already been for sale for years in several other liberal democracies, including Germany, Japan and the Netherlands. However, given the nations tumultuous history with alcohol, from prohibition to the current binge drinking culture that exists on college campuses across the nation, it’s unsurprising that the reaction to a new, more discreet way of imbibing alcohol would be looked down upon by the general public.

While some have dismissed powdered alcohol as simply a new marketing gimmick, lawmakers in several of the states that are still in session this late in the year, always eager to curry favor with constituents, have begun to take steps to keep this product off the market and out of the hands of children should it eventually hit the shelves.

On Tuesday, Minnesota Rep. Joe Atkins introduced HF 3364, which would make it unlawful for any person or business to possess, purchase, sell or use powdered alcohol, however it contains an exemption for hospitals and other similar institutions for the purpose of scientific research. The bill is currently pending in the House Commerce and Consumer Protection Finance and Policy Committee. Minnesota is scheduled to adjourn for the biennium in just under 20 days, making the bill unlikely to become law this year.

Similarly, Vermont Senate lawmakers also moved quickly to tack an amendment onto another alcohol related bill, S. 299, which would direct the Commission or Liquor Control alongside the Department of Health to study the product, and make sale and possession of powdered alcohol illegal until the study is completed in January of 2015. Unlike the proposal in Minnesota, Vermont’s has teeth, and sharp ones at that, creating a two year jail penalty for those convicted of selling the product. Also unlike the Minnesota proposal, Vermont’s is very likely to pass prior to the legislatures sine die adjournment.

With most states out of session until 2015, when a new biennium begins, expect this to be an issue that legislators will pounce on to regulate, similar to the way e-cigarette regulation has been handled and the state level following their meteoric rise in popularity in 2013.