Abstract
Previous research indicates that craft breweries experience difficulties with the Certificate of Labeling Approval (COLA) and formula approval processes established by the Alcohol and Tobacco Tax and Trade Bureau (TTB). This study evaluated the relationship between brewery characteristics and regulatory outcomes. Brewery characteristics of interest were number of full-time personnel, permit age, production volume, regulatory submission volume, and resource utilization. The outcomes evaluated were resubmission frequency of COLA and formula submissions, expense burden, and information burden. The results indicate that correspondence with TTB officials decreases resubmission frequency of formula submissions, while volume of resources used during submission preparation is positively correlated with the resubmission frequency of COLA submissions. Regarding expense burden, advice from fellow brewers and coworkers decreases burden associated with formula submissions and COLA submissions, respectively. The results indicate that the COLA and formula processes are associated with substantial information burden and are significantly associated with certain brewery characteristics.
Highlights
The Alcohol and Tobacco Tax and Trade Bureau (TTB) is responsible for regulatory oversight of the alcohol production, as well as tobacco manufacturing and importing businesses in the United States (US)
This study aimed to evaluate if the following characteristics impacted the success of TTB regulatory submissions: number of personnel, production volume, TTB permit age, volume of label and formula approval submissions, volume of resources utilized during preparation, and type of resources utilized during submission
Brewery characteristics that served as independent variables were as follows: number of personnel, production volume, TTB permit age, volume of label and formula approval submissions, volume of resources utilized during preparation, and type of resources utilized during submission
Summary
The Alcohol and Tobacco Tax and Trade Bureau (TTB) is responsible for regulatory oversight of the alcohol production (import and wholesale), as well as tobacco manufacturing and importing businesses in the United States (US). The TTB presides over the approval process(es) for the formulation and labeling of craft beer. Previous research suggests that these processes have resulted in a complicated interchange between the American craft brewing industry and the TTB. Craft brewers’ misunderstanding of regulations and frustration with the labeling and formula approval process(s) have resulted in untimely or inefficient approvals, and/or costs in the form of staff time, lost revenue, or legal assistance [2]. For TTB officials, the ambiguous communication has resulted in a substantial volume of flawed label and formula submissions, which is associated with an increased resubmission volume [3]. This issue has intensified due to a substantial increase in the volume of regulatory submissions
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