Use of Distilled Spirits Terms in Labeling and Advertising of Malt Beverages; Use of the Term ``Margarita'' in Labeling Distilled Spirits

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Heublein, Inc. (Heublein), a distilled spirits producer, has petitioned ATF to issue new rules relating to the labeling and advertising of distilled spirits and malt beverage products. ATF administers the Federal Alcohol Administration Act (FAA Act), 27 U.S.C. Secs. 205(e) and (f), which prohibits false and misleading statements on labels and in advertising of beverage alcohol. Specifically, Heublein has petitioned ATF to issue new rules to prohibit (1) the use of terms in the labeling of malt beverages which are the names of products customarily made with a distilled spirits base, (2) the labeling and advertising of a malt beverage in such a manner as to create the impression that it contains or is comparable to a distilled spirits product, and (3) the use of the term ``Margarita,'' or any other word commonly associated with tequila and Mexico, as a designation of any distilled spirits product which does not contain tequila. ATF has approved labels for malt-based alcohol beverages that use cocktail names such as ``Margarita'' provided the label clearly identifies the product as a malt beverage. The purpose of this notice is to provide the public with an opportunity to comment on t