As more companies enter the alternative protein marketplace, and more government leaders debate what should be legally considered meat, dairy and egg products, businesses need to be careful with their product names and label and advertising claims.

“It’s hard to think of anything more important than what you’re going to call the product. However, your freedom of invention is not limitless,” says Ricardo Carvajal,a food regulatory lawyer and director at the law firm Hyman, Phelps & McNamara, P.C. “The name must accurately identify or describe the basic nature of the food or its characterizing properties or ingredients. And this can be trickier than it sounds. What’s the composition of the product? What are its essential attributes? What’s it made from? How’s it made?”

Carvajal spoke on labeling and advertising at the Fermentation-Enabled Alternative Protein Innovation conference. Regulations for the young alternative protein industry are broad and confusing, he pointed out. Alternative foods have not been given a “standard of identity” by the FDA – the legal definition that dictates the composition of a food product, how it’s made and its name. Without formal federal direction regarding alternative foods, legislators across the country are making their own rules.

Governing Alt Food

A majority of states have considered regulating the labeling of alternative food products. So far, 32 states have proposed guidelines, and 15 of those have enacted legislation.

 “It’s a bit of a smorgasbord in terms of the content of these state laws,” Carvajal adds. “This is going to remain a difficult issue for companies to navigate. If there’s a standard of identity, a federal law, that’s going to take precedence over state laws. But what we’re seeing is an absence of a federal law or a regulation to cover some of these issues or some of these product categories. That’s leaving the door open for the conventional industry to push for laws at the state level.” 

This year the USDA plans to issue guidelines for labeling claims on food products made using animal cell culture technology, which will establish nomenclature and labeling requirements for those alternative proteins. The USDA also plans to provide direction on the labeling of plant-based milk alternatives by June 2022. 

Carvajal points to the “soy milk saga” as a cautionary example. Milk is a formal FDA standard of identity, defined as ““the lacteal secretion, practically free of colostrum, obtained by the complete milking of one or more healthy cows.” Plant-based milk brands have been sent warning letters by the FDA, arguing a plant product is misbranded as milk. The soy industry has petitioned the FDA to establish soy milk as a common name, but the dairy industry has lobbied aggressively to enforce preserving traditional dairy product names. 

Those FDA warning letters can be a big blow to a company — they’re published on the FDA website, so potential investors and customers can review. Letters are monitored by plaintiff’s lawyers, too. These attorneys specialize in suing companies on behalf of consumers, alleging consumers were misled by false claims. “Those actions can be quite expensive to defend,” Carvajal notes.

“Selecting or devising an appropriate name for a product can be a tricky exercise that requires simultaneous consideration of a number of factors,” he says. “The FDA does not view a name as a marketing opportunity.”

Types of Labeling & Advertising Claims

Though there are no formal legal definitions of alternative foods, alt brands do need to follow FDA, FTC and USDA labeling rules. These regulations include:

  • Nutrient content (FDA oversight). A nutrient must have an established daily value to make a particular claim. For example, “Excellent source of protein” on a label requires the product to provide 20% of the recommended daily value of protein, while “Good source of protein” requires only 10-19%.
  • Health (FDA oversight). This is a tightly-regulated area, Claims that imply a cause-and-effect relationship between a specific nutrient and a disease or health condition require scientific studies on humans. This research can take years to receive FDA approval. 
  • Structure/function (FDA/FTC oversight). This is the most popular type of claim on a food label because it doesn’t require review or approval in advance of going to market. Examples here are “Protein helps build strong muscles” and “Promotes a healthy immune system.” Still, a structure/function claim must be substantiated.
  • Environmental benefit (FTC oversight). Green claims need to comply with the FTC’s Green Guides, which give guidance on environmental marketing claims. Carvajal advises brands to avoid using terms like “eco-friendly” on a product label or in advertising because “they’re impossible to substantiate.” There are a variety of environmental certifications and seals that are better options for a product label.
  • Organic (USDA oversight). Organic food must meet USDA standards through the National Organic Program (NOP). Violations result in costly penalties.
  • Natural (no official definition). Natural does not have a legal definition — the FDA permits use of “natural” if the food does not contain anything artificial or synthetic. Meanwhile, the USDA views natural as a minimally processed product with no artificial ingredients, with the determination based on the specific product c rather than a category. Carvajal says a natural claim is a “very high risk” for a brand because “the absence of a legally binding definition has enabled plaintiffs lawyers in a wide range of circumstances.”

“You should assume that virtually any claim that you use on labeling or advertising will be subject to regulation of some kind,” he adds. “The requirements that apply might be general in nature or highly specific. So to protect your business, you should have a formal internal review process to ensure that you properly vet all your claims.”

Miso, frozen yogurt and pickled and fermented vegetables are driving growth in the $10.97 billion fermented food and beverage category. The fermented products space grew 3.3% in 2021, outpacing the 2.1% growth achieved by natural products overall.

“It really highlights how functional products have become the norm for shoppers when they’re in stores,” says Brittany Moore, Data Product Manager for Product Intelligence at SPINS LLC, a data provider for natural, organic and specialty products. Moore notes there’s an “explosion of functional products” in the market — “[they] are appearing everywhere. And fermented products have been leading that space in the natural market for years.”

The data was shared during TFA’s conference, FERMENTATION 2021. SPINS worked with TFA to drill into data covering 10 fermented product categories and 64 product types (an increase from last year). [A note that wine, beer and cheese sales are excluded from the data. These categories are very large, and would obscure  trends in smaller segments. Wine, beer and cheese are also well-represented by other organizations.]

Yogurt dominates the fermented food and beverage landscape with 75% of the market, but sales growth is soft. Frozen yogurt and plant-based offerings, though small portions of the yogurt category, are fueling what growth there is. “Novelty products are catching shopper’s eyes,” Moore notes.

 Kombucha, the fermented tea which led the U.S. retail revival of fermented products, still rules the non-alcoholic fermented beverages market, with 86% of sales. But growth is slowing. Moore points out that this slowdown is due to kombucha having penetrated the mass market with lots of brands on grocery shelves.

“There’s opportunity in kombucha for new innovations to catch the progressive shopper’s eye,” Moore says. “Shoppers are looking for an innovative twist to their functional product.”

Moore points to successful twists like hard kombucha, which grew nearly 60%, and probiotic sodas, which grew 31%.

Growth is slowing for hard cider, too, though hard cider leads the alcoholic beverages category with 83% share of sales. 

All sectors of the pickled and fermented vegetables category are growing, totalling nearly $563 million in sales. Refrigerated products are nine of the top 10 subcategories here. The “other” pickled vegetable subcategory is increasing at a 60% growth rate, “other” being the catch-all  for vegetables that are not cucumbers, cabbage, carrots, tomatoes, beets or ginger. Fermented radish, garlic and seaweed fall into this subcategory.

Soy sauce is not surprisingly still the largest product in sauces, representing 58% of the category. But that share is dropping. Gochujang is the growth leader, increasing at rate of nearly 20%.

Miso and tempeh are also performing well, which Moore attributes to the growing plant-based movement and the Covid-19 pandemic pantry stocking boom. Miso products — soups, broths, pastes and mixes — totaled over $24 million in sales in 2021. Though instant soups and meal cups represented only 8% of sales, they grew more than 110%.

Preserving Japan’s Miso Culture

A Japanese public-relations-exec-turned-chef has developed a unique product — Miso Drops, individually-sized servings of stock. She felt it was difficult for an individual customer to use miso from traditional breweries because they only ship products weighing at least 500 grams. Her drops weigh around 26 grams.

Entrepreneur Motomi Takahashi, “alarmed by the gradual disappearance of small-scale miso breweries that have been a key part of Japan’s tradition of fermented foods,” created the soybean paste balls using traditional methods. And, different from the large factories that mass-produce miso products, Takahashi’s miso drops are handmade.

Important to Takahashi is preserving Japan’s rich miso culture. Small-scale miso brewing in the country is “in danger of extinction,” notes an article in Kyodo News. In Japan’s Nagano Prefecture, where most of the miso in the country is made, the number of miso breweries declined 42% from 1963-2010. 

Takahashi is developing a product line called misodrop47, which will feature miso drops made in each of Japan’s 47 prefectures. Currently, hermiso drops come from eight.” I wanted to develop products for the misodrop47 project to allow customers to casually sample miso from all over Japan,” she says.

Read more (Kyodo News)

Whey-Based Spirits

Wisconsin-based Native American distillery Copper Crow is using whey to make vodka and gin. Whey (the liquid byproduct of cheesemaking) gives the liquors a creamy, sweet, sake-like taste.Copper Crow one of only a handful of distilleries in the world that makes whey-based spirits.

Whey can be difficult to dispose of. Every pound of cheese leaves behind nine pounds of whey, but it cannot be poured down a drain or into farm fields because it consumes oxygen. Many cheesemakers use it for animal feed or fertilizer. 

“The market for the protein-rich, lactose-clouded liquid is minuscule — mostly makers of workout snacks and wellness tonics — but distillers represent a small yet emerging new customer base, with American producers beginning to follow the lead of those in the U.K., France, Australia, and New Zealand,” reads an article on Copper Crow in Fortune.

Copper Crow sits on the Red Cliff Reservation, with Lake Superior artesian aquifers providing pristine water. Owners Curtis and Linda Basina are members of the Red Cliff Band of the Lake Superior Chippewa. Prohibition laws from 1834, though, barred Native Americans from trading alcohol on their reservations.So it would be illegal to run a distillery on their reservation.

The Bassinas found a loophole to the racially-motivated ban — they own title to the land where the distillery is located. Their application was approved, “a watershed moment for Native American entrepreneurs long denied a slice of a booming craft-distilling industry.”

Read more (Fortune)

In San Francisco, a “booming Bay Area confection ring” is developing.. Julia Street, a former food tech industry exec, is the latest entrant. She is now a self-taught chocolatier running J Street Chocolate.

Street began pursuing chocolate “to follow her obsession with all things fermented.” The experimental chocolates “only a scientist could dream up” are made using upcycled ingredients from other fermenters in the city. For example, she uses spent grains from Laughing Monk Brewing in her Piv Snack Bars. She tells Eater that the ethics behind the chocolate are important to her, too. Her 68% cacao bar is sourced from the Dominican Republic, and sales support a Northern Dominican agroforestry project.

Other Bay Area chocolate shops that have cropped up in recent years include Dandelion Chocolate, Topogato and Kokak Chocolates.

Read more (Eater)

Korean Rice Wine Gets a Makeover

Makgeolli made the pages of The New York Times, hailed as a “cosmopolitan sensation over the past decade…the buzz grew during Covid lockdowns.”

The Korean rice wine is a centuries-old tradition in Korea. Makgeolli (or makkolli) is made from fermented rice and nuruk (a dough-like starter). But the drink’s had a difficult history in the country. It was banned during Japan’s 35-year occupation of the Korean Peninsula, then suppressed again in the 50’s during a postwar grain shortage.

“For the people that grew up in postwar Korea, their understanding of makgeolli and soju is very different from what the general population of Koreans understood in prewar,” says Alice Jun, the New York-based makgeolli producer behind Hana Makgeolli. Jun studied the craft in Seoul before starting her artisanal brand in Brooklyn. 

The makgeolli industry used to be run by larger companies until about 10 years ago. Now smaller start-ups are leading the industry, and young Korean professionals are driving demand for the drink.

“It’s not that we’re taking a new approach to things,” Jun said of her brand and the makgeolli start-ups that are proliferating in South Korea. “It’s that we’re appreciating the traditional things, and calling attention to them in the world of the internet and social media and brands.”

Read more (The New York Times)

Fermentation is cloaked in mystery for many — it’s bubbly, slimy, stinky and not always Instagram-ready. In The Fermentation Association’s recent member survey, this lack of

understanding of fermentation and its flavor and health attributes among consumers was cited by 70% of producers as a major obstacle to increased sales and acceptance of fermented products.

“We get so many questions from our readers about fermentation. People are very interested, but have very, very little knowledge about it,” says Anahad O’Connor, reporter for The New York Times. O’Connor has written about fermented foods multiple times in the last few months, and those articles were among The Times’ most emailed pieces of 2021. “I think there’s a huge opportunity to educate consumers about fermented foods, their impact on the gut and health in general.”

O’Connor spoke on consumer education as part of a panel of experts during TFA’s conference, FERMENTATION 2021. Panelists — who included a producer, retailer, scientist, educator and journalist — agreed consumer education is lacking. But the methods of how to fill that gap are contested.

How to Tell Consumers “What is a Fermented Food?”

There are differences between what is a fermented product and what is not — a salt brine vs. vinegar brine pickle, or a kombucha made with a SCOBY or one from a juice concentrate, for example.

“I can tell you that the majority of our customers do not even know [what is a] fermented item,” says Emilio Mignucci, vice president of Philadelphia gourmet store Di Bruno Bros., which specializes in cheese and charcuterie. When customers sample products at the store, they can easily taste the differences between a fermented and a non-fermented product, Mignucci says. But he feels the health benefits behind that fermented product are not the retailer’s responsibility to communicate. “I need you guys [producers] to help me deliver the message.” 

“Retailers like myself, buyers, we want to learn more to be able to champion [fermented foods] because, let’s face it, fermented foods is a category that’s getting better and better for us as retailers and we want to speak like subject matter experts and help our guests understand.”

Now — when fermentation tops food lists and gut health is mainstream — is the time for education.

“This microbiome world that we’re in right now is sort of a really opportune moment to really help the public understand what fermented foods are beyond health,” says Maria Marco, PhD, professor of food science at the University of California, Davis (and a TFA Advisory Board Member).

Kombucha Brewers International (KBI) created a Code of Practice to address confusion over what is or is not a kombucha. KBI is taking the approach that all kombucha is good, pasteurized or not, because it’s moving consumers away from sugar- and additive-filled sodas and energy drinks. 

“That said, consumers deserve the right to know why is this kombucha at room temperature and this kombucha is in the fridge and why does this kombucha have a weird, gooey SCOBY in it and this one is completely clear,” says Hannah Crum, president of KBI. “They start to get confused when everything just says the word ‘kombucha’ on it.”

KBI encourages brewers to be transparent with consumers. Put on the label how the kombucha is made, then let consumers decide what brand they want to buy.

Should Fermented Products Make Health Claims?

Drew Anderson, co-founder and CEO of producer Cleveland Kitchen (and also on TFA’s Advisory Board), says when they were first designing their packaging in 2013, they were advised against using the term “crafted fermentation” on their label because it would remind consumers of beer or wine. But nowadays, data shows 50% of consumers associate the term fermentation with health.

“In the last five to six years, it’s changed dramatically and people are associating fermentation as being good for them, which is good for my products,” he says.

Cleveland Kitchen, though, does not make health claims on their fermented sauerkraut, kimchi and dressings. Anderson says, as a small startup, they don’t have the resources to fund their own research. They instead attract customers with bold taste and striking packaging.

“We’re extremely cautious on what we say on the package because we don’t have an army of lawyers like Kevita (Pepsi’s Kombucha brand), we don’t have the Pepsi legal team backing us here,” Anderson says. Cleveland Kitchen submits new packaging designs in advance to regulators, to make sure they’re legally acceptable before rolling them out. 

O’Connor says taste is the No. 1 driver for consumers. This is why healthful but sticky and stinky natto (fermented soybeans) is not a popular dish in America, but widely consumed in Japan. 

“Many American consumers, unfortunately, aren’t going to gravitate toward that, despite the health benefits,” he says. 

Crum disagrees. “Health comes first,” she says. As more and more kombucha brands emphasize lifestyle, and don’t even advertise their health benefits, she feels they are doing a disservice to the consumer. “Why pay that much money for kombucha if you don’t know it’s good for you too?”

Changes in the global food system influenced the types of laws U.S. legislators passed in 2021. States are loosening the regulations on breweries and wineries, offering more government support to local restaurants, allowing the sale of homemade foods and cracking down on hidden fees from third-party food delivery services.

In our last newsletter, we shared the food and beverage laws passed in 20 states in 2021. The list below completes the balance of the country — Massachusetts to Wyoming.

Massachusetts

HB21 — Allows temporary licenses for nonprofit charitable corporations. Allows alcoholic beverages sold to be donated at no charge to the license holder.

HD1331 — Provides that a license to operate a restaurant may be connected to other on-site premises, even if it is not a grocery store.

SB2475 — Extends to-go cocktail sales through May 1, 2022. 

SB2603 — Sets minimum standards for the confinement of chickens, veal calves and pigs, and bans the in-state sale of products that don’t comply. Mandates cage-free conditions for egg-laying hens with welfare enrichments like perches, dust bathing areas, scratching areas and next boxes. The law also expands coverage to egg products and liquid eggs. 

SB2841 — Reform state’s franchise laws, allowing a new qualified brewer for craft brewers. Allows craft brewers who produce fewer than 250,000 barrels annually to end their contract with a wholesaler. It repeals the state’s 1971 franchise law, enacted to protect in-state distributors from larger, out-of-state, foreign brewers, during a time when the craft beer industry did not exist.

Michigan

HB4711 — Allows baseball stadiums at Michigan universities to serve alcohol. 

SB49 — Allows wineries, breweries and distilleries to operate both an on-premise and off-premise tasting room at the same location. 

SB141 — Allows small craft distillers to self-distribute up to 3,000 gallons per year of product to retailers. Also allows craft distillers to ship directly to consumers.

SB142 — Allows a small wine maker to self-distribute directly to retailers.

SB144 — Expands the definition of a mixed spirit drink to allow increased ABV percentage. 

SB559 — Amends state liquor code to allow more entertainment complexes to receive liquor licenses; drops number of needed races from seven to two for a motorsports venue to qualify for a liquor license.

Minnesota

SB958 — Raises the sales cap for cottage food sales from $18,000 (formerly the lowest sales cap in the country) to $78,000.

Mississippi

HB562 — Allows online sales of cottage foods. 

HB572 — Expands boundaries of resort areas where alcohol can be sold.

HB997 — Authorizes private retailers to obtain wholesaler permits for alcohol sales. Also removes the state’s Department of Revenue as a wholesale distributor of alcohol. 

HB1091 — Amends code to increase the alcohol content for alcoholic products. Defines how much product can be produced and sold at a microbrewery.

HB1135 — Allows alcohol delivery from a licensed delivery.

HB1288 — Amends code to allow a charter ship to sell and serve alcohol.

Missouri

HB537 — Allows online sales of cottage foods and removes the $50,000 sales limit on cottage foods.

HB574 — Prohibits inspectors of agricultural grounds or facilities to enforce laws of states other than MIssouri.

SB126 — Legalizes the permanent sales of to-go alcohol. Also expands the sale of alcohol in the state on Sundays.

Montana

HB79 — Provides regulatory clarity for how breweries produce fermented-style beverages, including any alcoholic beverages made by fermentation of malt substitutes, like rice, grain, glucose, sugar or molasses.

HB157 — Removes restrictions for alcohol licensing, allowing brewers and immediate families to both hold a license. 

HB226 — Makes permanent the curbside delivery and to-go drink options for licensed retailers established during the Covid-19.

SB199 — Establishes the Montana Local Food Choice Act. The food freedom bill exempts certain homemade or cottage food products from food licensing and inspection regulations. It also expands the types of foods that can be sold.

SB247 — Allows colleges and universities in the state to serve beer and wine at sporting events.

SB320 — Legalizes the home delivery of beer and wine.

Nebraska

LB274 — Amends the Nebraska Liquor Control Act, making permanent licenses to sell to-go alcoholic beverages. Also allows craft breweries and wineries to sell alcoholic beverages at open-air farmers markets. 

LB324 — Establishes the Independent Processor Assistance Program, improvising the Nebraska Meat and Poultry Inspection Law. Helps small locker plants make the transition to a federally-inspected facility. 

LB396 — Adopts the Nebraska Farm-to-School Program Act, which establishes a structure to facilitate communication between farmers and schools. 

Nevada

SB297 — Requires the Council on Food Security to research and develop recommendations on community gardens and urban farms.

SB307 — Prohibits direct-to-consumer (DTC) shipping of alcohol from both in-state and out-of-state breweries, distilleries and retailers. In-state retailers can also make local deliveries from licensed wholesalers. However, DTC wine shipments will still be allowed.

SB320 — Requires food delivery services such as Uber Eats and DoorDash to disclose fees to consumers, breaking down what price is for food, taxes, delivery fee and commission charted to the restaurant. Restaurant committees are limited to 20% of a credit card processing fee during a state of emergency (like the Covid-19 pandemic).

New Hampshire

HB226 — Gives state department of agriculture authority to stop the sale of any produce in violation of state agricultural laws. 

HB345 — Establishes a license for wild mushroom harvesters. Allows state department of health and human services to fine people who distribute wild mushrooms without a license.

HB593 — Requires food delivery service to enter into an agreement with a food service establishment before offering delivery service from that restaurant.

SB66 — Allows takeout and delivery of alcoholic beverages.

SB125 — Eases certain regulatory restrictions for a number of beverage manufacturer licenses. Removes limitation on quantity of beer a beverage manufacturer may sell in a day to the public and allows direct-to-consumer shipping to consumers within the state.

SB155 — Allows restaurants to permanently expand dining into a shared space, like a sidewalk or street, with approval from local authorities. This temporary dining space was originally established during the Covid-19 pandemic.

New Jersey

AB1091 — Requires Division of Travel and Tourism to advertise and promote tours of breweries in the State.

AB1478 — Permits theaters with 50 seats or more to apply for liquor license.

AB5906 — Rescinds prohibition on return of certain items purchased from retail food stores during Covid-19 state of emergency. It also provides that future limitations on returns occur during declared public health emergencies.

SB673 — Establishes New Jersey’s first cottage food law (they were the only state in the U.S. without a cottage food law). Allows home-based producers to make food from home rather than a commercial kitchen. These producers must obtain a license every two years, cannot earn more than $50,000 a year and are limited by products that can be sold (though state permission can be granted for additional items).

SB3340 — Expands opportunities for restaurants, bars, distilleries and breweries to operate during the Covid-19 pandemic. Provides outdoor dining space and opens new permits for sales at farmers markets.

SB3364 — Allows certain liquor licenses to acquire alcoholic beverage licenses from a retail food store that is a bankrupt asset. 

New Mexico

HM1 — Requests the New Mexico Department of Agriculture to study the economic benefits of regional mobile livestock slaughter units, which would make livestock slaughtering easier for small ranchers. 

HB177 — Enacting the Homemade Food Act. Allows anyone in the state to start a cottage food business — and opens sales to be from home and online (cottage food sales were previously limited to events only). 

HB255 — Allows restaurants to purchase a liquor license at a more affordable rate ($2,500-$10,000, depending on size) if serving alcohol with dinner. Also allows alcohol deliveries with food. 

HB303 — Bans unlawful liquor incentives. No liquor licensee shall accept money or a gift of monetary value to influence the purchase or a certain brand of alcoholic beverage. 

SB1 — Allows qualified state food and beverage establishments to claim a temporary gross receipts tax (GRT) deduction on sales of food and beverages from March 2, 2021 through July 1, 2021 as a stimulus incentive. 

SB2 — Waives the annual liquor license fees for licensees, aiming to boost businesses hit by the Covid-19 pandemic.

New York

AB952 — Directs the commissioner of agriculture and markets and the commissioner of economic development to work with the state’s land grant university system to produce a report to provide advice, guidance and recommendations on improving the resiliency of the state’s farm and food supply. Also will provide guidance on the related supply chain logistics to address food shortages, food waste and the inability to get New York farm goods to markets that occurred as a result of the Covid-19 pandemic, with the goal of creating permanent solutions beyond the state of emergency to reflect the changing wholesale, retail and consumer marketplace.

AB4613 — Creates a task force on improving urban and rural access to locally produced, healthy foods.

AB5386 —  Establishes the New York Soil Health and Climate Resiliency Act to enhance and maintain the health and resilience of agricultural soils. The program will assist farmers in improving the health of their soil. It also establishes a climate resilient farming initiative to promote and encourage farmers to reduce the effects of farming on climate change and to adapt to and mitigate the impact of climate change by improving and maintaining water management systems and soil health.

AB7506 — Requires grease traps at food service establishments be designed to withstand expected loads and prevent unauthorized access, making them safer for the general public.

AB7207 — Authorizes and directs the commissioner of agriculture and markets to conduct a study on urban agriculture, including vertical farming, community gardens and urban farming.

SB1630 — Requires third-party food delivery services to have a valid agreement with a merchant before they advertise, promote or sell the merchant’s products on their platform.

SB2743 — Authorizes the issuance of a temporary retail permit by the state liquor authority to licensees located in a municipality having a population of one million or more persons.

SB6353 — Allows restaurants to utilize municipal spaces like sidewalks and streets for outdoor dining for another year. First granted under an executive order during the Covid-19 pandemic, the law makes restaurant use of public spaces to allow restaurants to recover from the pandemic.

North Carolina

HB4 — Extends ABC permit renewal payment deadlines for bars.

HB890 — Allows consumers to order online and pick-up alcohol from state Alcoholic Beverage Control stores, expands growler sizes from 2 to 4 liters, loosens rules for distillery tours and allows distillers to sell alcohol at festivals.

North Dakota

HB1284 — Modifies special event alcohol permit requirements to remove the rule that persons under 21 years of age must remain out of the area where alcohol is served.

HB1475 — Creates a $10 million agriculture diversification and development fund to provide loans and grants for value-added agriculture businesses in the state.

SB2220 — Moves the sale of Sunday alcohol sales to 8 a.m., the same as the rest of the days of the week in the state.. 

SB2321 — Allows microberies and taprooms to ship products in-state.

Ohio

HB665 — Increases the amount a county or independent agricultural society receives for operating expenses from a county. Removes caps on junior club membership .

HB669 — Makes to-go alcohol sales permanent.

HB674 — Allows home delivery of alcohol, as long as the beverage is served in an original container. 

SB102 — Sweeping liquor reform. Lowers the age for serving alcohol to 18, expands  Designated Outdoor Drinking Areas spaces, clarifies that homebrewers are allowed to brew their own drinks, enter them in tasting competitions and share them at local club gatherings. 

Oklahoma

HB1032 — Creates the Homemade Food Freedom Act which provides for regulation and oversight for the production, transportation and sale of homemade food products. Now allows almost all types of baked, non-perishable and perishable foods. Also increases sale limits from $20,000 to $75,000, allows direct sales and allows shipment of non-perishable items.

HB2117 — Allows certain communication and interaction via social media by alcohol wholesalers, beer distributors and retailers.

HB2122 — Allows the sale of to-go cocktails, mixed drinks or single-serve wine in a sealed container for off-premise consumption.

HB2277 — Permits licensed alcohol retailers to offer different drink specials at various locations owned and operated under their license, like a happy hour.

HB2380 — Allows customers to self-pour their own beer, wine or mixed beverage from automated machines.

HB2726 — Allows Oklahoma small businesses to offer bottle service to their customers.

SB85 — Authorizes holders of multiple small brewer licenses to sell beer at multiple locations.

SB262 — Requires wine and spirit wholesalers to remit alcohol excise taxes when purchasing alcoholic beverages for sale within the state except for wine shipped by wineries possessing a Winemaker Self-Distribution License.

SB315 — Allows licensed distillers to sell spirits for on- or off-premise consumption on distillery property or in an area connected and controlled by the licensee.

SB385 — Allows retail spirits, wine and beer licensees to host alcoholic beverage tastings.

SB499 — Requires that customer receipts for alcoholic beverages purchased at catered, public and special events include a line item for the 13.5% tax collected.

SB760 — Allows multiple alcohol licensees to designate a common drinking area.

Oregon

HB2111 — Changes name of “Oregon Liquor Control Commission” to “Oregon Liquor and Cannabis Commission.” 

HB2264 — Alcohol reform bill. Allows Indian tribe or airline that holds full on-premises sales license to negotiate with Oregon Liquor Control Commission purchase price of distilled liquor for specified sales. Directs Oregon Liquor Control Commission to study alcohol. Changes definition of “malt beverage.” Allows nonprofit organizations to sell alcoholic beverages for up to 45 calendar days per year without license issued by commission. Allows holder of full on-premises sales license to sell, deliver and ship to consumers specified alcoholic beverages for off-premises consumption. Allows holder of limited on-premises sales license to deliver and ship to consumers specific alcoholic beverages for off-premises consumption. Allows holder of off-premises sales license to sell specified alcoholic beverages for off-premises consumption. Allows holder of temporary sales license to ship specified alcoholic beverages to consumer. Repeals license application fee. Allows advertising by liquor store to be visible from outside store. Specifies that retail sales or distillery outlet agent’s deposit with commission is of check and cash receipts. Specifies wine containing more than 16% alcohol by volume is taxed at 10 cents per gallon. Requires manufacturer, purchaser and distributor of alcohol to retain records for three years. 

HB2742 — Allows holder of off-premises sales license to sell factory-sealed containers of malt beverages that hold more than seven gallons.

HB2363 — Allows certain holders of temporary event licenses to sell specified alcoholic beverages for on and off-premises consumption at more than one location on licensed premises — or have up to three premises licensed under single temporary sales license and operate for up to 30 day.

HB2395 — Modifies single-use checkout bag prohibition in the state. Changes definition of “recycled paper checkout bag” to include bags that contain non wood renewable fiber.

HB2611 — Permits agricultural building to be used for uses other than uses set forth in definition of “agricultural building” if additional uses are incidental and accessory to defined uses, are personal to farm owner and farm owner’s immediate family or household and do not pose hazard. 

HB3361 — Requires third-party food platform to enter into agreement with restaurant before arranging delivery of orders from food place or listing food place on application or website. Requires third-party food platform delivery service to receive written consent from restaurant before arranging for delivery or order from restaurant.

SB806 — Includes “fortified cider” in definition of cider. Allows holder of direct shipper permit to ship up to five cases of wine per month to Oregon residents. Deletes requirement that commission charge application fee for new licenses. Provides that the alcohol commission may allow applicant to defer or waive payment of annual license fee if Governor declares state of emergency. 

Pennsylvania

HB425 — Allows a liquor licensee that has closed either permanently or for a long time to sell its liquor license.

HB427 — Gives establishments with liquor licenses a 15% discount (instead of 10%) on the purchase of liquor from the state stores for three years.

SB434 — Alters “sell by” and “best by” dates on milk. Allows processors to apply for Department of Agriculture approval to exceed the current 17 day limit.

Rhode Island

HB5131 — Prohibits a food service establishment from providing a consumer with a single-use plastic straw, unless the consumer requests such a straw.

HB5214 — Eliminates the $10.00 fee requirement for businesses to obtain a sales tax permit.

HB5758 — Establishes the state’s first Cottage Food Law, but only allows farmers to sell homemade products.

SB142 — Allows the sale of alcoholic beverages on New Year’s Day by retail Class A licensees.

SB364 — Entitles dairy farms to the exemptions from taxation already granted to farmland, forestland and open space.

SB555 — Authorizes a Class B liquor license holder to sell to-go alcoholic beverages with take-out food orders (but rule will sunset on March 1, 2022).

SB788 — Prevents third-party food delivery services from using the likeness, registered trademark or any intellectual property belonging to the restaurant to falsely suggest sponsorship or endorsement without the restaurant’s consent.

South Carolina

SB619 — Allows more off-site tasting rooms in the state. Amends 1976 law affecting distilleries, breweries and wineries, to establish off-site “satellite locations” for sale of their products.

South Dakota

HB1109 — Updates state homebrew legislation to include cider as a permissible homemade alcoholic beverage. Allows (in limited quantities) for homemade alcoholic beverages permissible to be sold on licensed premises for certain events, and allows homebrewers to transport homemade alcoholic beverages from their household. 

HB1121 — Deregulates the homemade or cottage food market. Repeals requirement that homemade canned goods must be inspected by a third-party authority for pH levels. Replaces lengthy warning that food wasn’t produced in a commercial kitchen and required allergen listing with a shorter summary. Allows sellers to sell their products through third parties without getting a good service license (as long as they aren’t making more than $150,000 a year).

HB1153 — Authorize the Board of Regents to contract for the design and construction of a new dairy research and extension farm on the campus of South Dakota State University, with equipment and furnishings.

Tennessee 

HB306 — Extends the Tennessee dairy promotion committee to June 30, 2029. 

HB1129 — Adds requirements for farmers to participate in herdshare programs, like maintain owner records, include warning labels on products and notify owners in case of contamination.

HB1514 — Reduces the population threshold (from 925 to 700) to make a municipality eligible to hold a referendum on the sale of alcoholic beverages. 

SB17 — Allow breweries to self-distribute 1,800 barrels of beer throughout the state each year without having to go through a wholesaler.

SB269 — Authorizes a delivery service licensee to charge a fee based on a percentage of the sales of the alcoholic beverages or beer being delivered; limits the fee to no more than 10% of the price of each alcoholic beverage sold.

SB299 — Defines “food hall” for purposes of consumption of alcohol on the premises of a food hall; enacts certain requirements governing the operation of a food hall.

SB403 — Requires state to disclose certain information on contracts with wholesalers of alcoholic beverages.

SB591 — Authorizes a person or entity holding liquor license to sell or transfer their alcoholic beverage inventory to another licensee if they’re closing their establishment.

SB681 — Allows to-go alcohol sales for the next two years.

SB705 — Prohibits licensure as a winery direct shipper of in-state or out-of-state wine fulfillment houses.

Texas

HB1024 — Allows permanent sales of to-go beer, wine and mixed drinks for pickup and delivery food orders.

HB1276 — Allows restaurants to sell bulk foods directly to the public.

HB1518 — Loosens alcohol restrictions on Sunday mornings, allowing sales starting at 10 a.m. rather than noon.

HB1755 — Allows customers to take home unopened bottles of wine.

HB1957 — Sets new standards on what can be labeled as a Texas wine. If putting Texas on the wine label, winery must grow majority of grapes (75%-95%) within the state, county and/or vineyard on the label.

HR2002 — Recognizing June 2022 as National Dairy Month in Texas.

SB617 — Allows all food producers to sell food directly to consumers, not just farmers. Limits permit fees.

SB911 — Bans third-party food delivery service from using a restaurant’s trademark or charging a restaurant fees (unless agreed upon in writing). Also protects a restaurant from predatory food delivery services — allows a restaurant to be removed from the third-party delivery services listing if requested, and required third-party delivery services to provide consumers with a means to express concerns with their delivery. Gives restaurants the power to sue a third-party delivery service if it violates the terms. Also prohibits cities and counties from creating interfering regulations than what the state approved.

SB1226 — Allows brewpubs to legally host tastings.

Utah

HB94 — Legalizes microenterprise home kitchens, allowing home chefs to sell their homemade meals. 

HB296 — Creates the Utah Soil Health Program.

SB137 — Gives the Utah Department of Alcoholic Beverage Control an additional $4.3 million to raise salaries for its retail clerks, warehouse workers, store managers and assistant managers up to market standards.

SB147 — Prohibits farm owners and operators in the state from confining egg-laying hens to enclosures. Must implement cage-free housing systems by 2025.

HB166 — Criminalizes theft of livestock.

Vermont

HB218 — Expands raw milk sales for producers selling at farm stands and CSA’s in the states.

HB313 — Extends for two years the governor’s executive order to allow curbside pickup and delivery of alcohol. 

HB434 — Establishes the Agricultural Innovation Board.

SB20 — Bans the sale of common items containing PFAS (perfluoroalkyl and polyfluoroalkyl substances used to make food packaging grease- and water-resistant). The bill takes steps to restrict harmful phthalate and bisphenol chemicals from food packaging. 

Virginia

HB1299 — Allows for the sale of to-go alcohol beverages until July 1, 2022.

HB1902 — Prohibits food vendors from using single-use expanded polystyrene food service containers. Requires chain restaurants to stop using such containers by July 1, 2023, and sets the date for compliance by all food vendors as July 1, 2025. A penalty will be inflicted of $50 a day for violators.

HB1973 — Allows nonprofits conducting online fundraisers to sell and ship wine in closed containers as part of a fundraising activity. 

HB2068 — Establishes the Local Food and Farming Infrastructure Grant Program. The governor will award the grants based on infrastructure development projects that support local food production and sustainable farming. 

HB2302 — Allows farmers markets to be treated as grocery stores during state of emergency and are allowed to remain open as essential businesses during a state of emergency declared by the Governor. 

SB1188 — Establishes the Virginia Agriculture Food Assistance Program and Fund for Virginia farmers and food producers to donate, sell, or otherwise provide agriculture products to charitable food assistance organizations.

SB1193 — Establishes the Dairy Producer Margin Coverage Premium Assistance Program. Gives dairy farmers (with a resource management or nutrition management plan) the ability to receive a refund of their annual premium payment paid into the federal program.

SB1428 — Prohibits the Virginia Alcoholic Beverage Control Authority from selling in government stores low alcohol beverage coolers not manufactured by licensed distillers. 

SB1471 — Allows the Board of Directors of the Virginia Alcoholic Beverage Control Authority to increase the frequency and duration of outdoor events that sell alcohol. The laws are expected to provide flexibility to restaurants during COVID-19.

Washington

HB1145 — Allows the use of non wood renewable fiber in recycled paper carryout bags.

HB1480 — Allows sale of to-go alcohol products, including cocktail kits and growlers. 

HB5362 — Ensuring the funding of agricultural fairs.

SB5022 — Enacts recycling requirements for plastic beverage containers. Bans polystyrene (EPS) products and sets-up opt-in requirements for dining establishments using single-use foodware. 

SB5272 — Waives a one-time annual liquor license and cannabis license fee for those establishments for 12 months. 

West Virginia

SB 51 — Requires dairy foods processed in the state to be added to the list of items to be purchased by state-funded institutions. 

SB 58 — Creates the West Virginia Farm Fresh Dairy Act.

Wisconsin

SB56 — Allows alcohol beverage retailers to make online or phone sales of alcohol beverages, to be picked up by the customers at a designated parking space that is not part of the retail licensed premises.

Wyoming 

HB13 — Increases the amount of wine that a licensed out-of-state wine shipper may ship to any one household address. Allows Wyoming consumers to receive up to 12 cases of wine in a 12-month period (the former limit was four cases per year).

HB51 — Establishes grant program to meat processing facilities suffering during the COVID-19 pandemic.

HB54 — Focuses efforts and resources of the Wyoming Business Council on developing slaughter plant options for producers.

HB118 — Allows sale of eggs under the state’s Food Freedom Act.

HB156 — Allows winery permit holder to be issued an off-premise wine permit for a 24-hour period.

HB159 — Allows any liquor license holder — who then obtains an out-of-state shipper’s license — to ship alcohol to Wyoming households. Increases satellite permits for liquor manufacturers from one to two.

HB229 — Allows Wyoming ranchers the choice of selecting lawful forms of animal identification devices. Rejects USDA mandate to only use higher-cost RFID ear tags for livestock.

Fermentation Tourism

The state of Pennsylvania has created a unique tourist experience, Pickled: A Fermented Trail. The self-guided, culinary tour showcases fermented food and drink from around the state. 

The fermented trail is broken into five regional itineraries, and includes historic businesses, artisanal food makers and large producers. Stops range from an Amish gift shop that ferments root beer to a master chocolatier, from a kombucha taproom to a fermentation-focused restaurant, and from a fourth-generation cheesemaker to a convenience store that makes its own pickles, sauerkraut and vinegar. Mary Miller, cultural historian and professor, spent two years designing the trail. 

“Cultured foods have been part of PA’s culinary culture since the beginning,” reads the Visit Pennsylvania Pickled: A Fermented Trail website. “Many groups that have migrated to Pennsylvania throughout history were fond of fermented foods for both health and flavor, as well as for preserving food through the winter.”

The website also features a history of fermented food and drink, both regionally and globally. It shares a brief overview of root beer, which was created in Pennsylvania as a sassafras-based, yeast-fermented root tea. And it notes that, while Germans brought sauerkraut to the state, the Chinese are believed to have been the first to ferment cabbage.

The fermented trail is one of Pennsylvania’s four new culinary road trips, along with those  highlighting charcuterie, apples and grains. These paths aim to showcase the state’s culinary history, and preserve its foodways. 

This unique culinary adventure — the first we have seen at TFA — could be a model for tourism in other states and countries.

Read more (Food & Wine)

Kombucha for the Skin

Will 2022 be the year of fermented cosmetics? Market research firm WGSN thinks so. As consumers continue to desire natural cosmetics and Korean and Japanese skincare products, fermentation is a leading trend in the cosmetics industry.

Consumers want to protect their skin from environmental stresses and restore skin’s youthful glow and use potent ingredients that last longer, both factors fermentation addresses. WGSN calls the fermented beauty trend as “kombucha for the skin”

“…fermentation releases enzymes that break down molecules so they can better penetrate the skin, delivering powerful ingredients into the very structure of the skin or hair. The process of fermentation also cultivates the growth of beneficial bacteria such as lactic, organic and acetic acids, which act as natural preservatives,” according to WGSN. “These naturally occurring bacterias prolong the shelf life of formulas, appealing to both the sustainably minded and value-focused consumer.”

Smaller, niche brands already offer cosmetics using fermented ingredients. Gallinée’s hair cleansing cream is enriched with fermented rice water and Innisfree makes fermented soy masks.

Read more (Premium Beauty News)