Miller Coors Told to Pull Beer Off Store Shelves in Minnesota

MP900444468 — Miller Coors Told to Pull Beer Off Store Shelves in Minnesota

***UPDATE***

Since this post was written last week the Minnesota Governor reach a tentative deal with legislators. That deal is yet to materialize and while it takes form a Ramsey County Judge refused to grant bar owners temporary purchasing cards. In her order the judge Kathleen Gearin held that the resolution to the problem lie with the Governor and legislators not the judicial branch. She did indicate a willingness to address “complex constitutional issues” should the budget impasse last past this week. Meanwhile MillerCoors continues to distribute beer, which is a technical violation of the law. What penalty the brewer will face remains unclear. The constitutional issue the Judge alluded likely involve separation of powers – what budget can a judge set for government programs? What authority to direct personnel to work? – and also the Supremacy Clause of the US constitution – which delineates where the State’s authority exists and what obligations the state has to the federal government. Absent a passed budget, this will be an interesting case as it develops.

***Original Post Below***

News from the Minnesota government shutdown recently focused on Miller and Coors. The brewer must pull its beer from Minnesota bars, restaurants, and stores because its “brand-label registration” was not processed before the government shutdown on July 1. The company claims it properly filed its paperwork to renew registration on 39 brands before the government shutdown. The paperwork and fees however were never processed.

Brand label registrations are a common way for States to regulate the sale of alcohol. A spokesman for the Minnesota Public Safety Department told the press that registrations must renewed every three year in order to manufacture, distribute or sell alcohol in the state. Because Miller and Coors, along with many other brewers, registrations expired on June 13 the state has asked the company for a plan showing how it will remove the beer “within days.” A state court judge has been asked to suspend the brand label licensing requirements until the government returns or to have the renewals processed.

There is a strong argument to suspend the brand licensing requirements. Brand labeling registration occurs at both the state and federal level. Minnesota for example regulates what can be imported, made, or sold using the criteria “any brand of intoxicating liquor or 3.2 percent malt liquor” MRS 340A.11. Those beverages that qualify must be inspected to assure accuracy of the label, verify authenticity (no counterfits), and ensure compliance with other state liquor laws.

The federal government also regulates malt beverages. In 27 CFR Part 7, Labeling and Advertising of Malt Beverages, subpart C applies to any ”malt beverages sold or shipped or delivered for shipment, or otherwise introduced into or received in any State.” (emphasis added). The subpart goes to explain what labeling is compliant and the penalties for misbranding. Since there is a dual level of scrutiny placed on alcoholic beverages the Minnesota regulations should be suspended until the government returns.

There is a great deal of regulation over alcohol, perhaps the Minnesota case is a reminder that it should either be regulated by the State or the Feds, but not both. At least its time to look at where there the laws overlap to determine how best to regulate alcohol.

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Miller Coors Told to Pull Beer Off Store Shelves in Minnesota

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