It is no secret that craft distilling is having a moment. With states across the nation, including Pennsylvania and New Jersey, changing their laws to ease the burdens for new small spirit producers to enter the market, it makes sense that there has been an influx of craft spirits into the market. The rise in popularity of craft or small-batch spirits, however, has not gone unnoticed by more established distillers who are developing products targeted to this new consumer base. This, in turn, has raised questions regarding what it means for a spirit to be “craft,” or “handmade.” With consumers bringing class action claims of false advertising and deceptive trade practices against manufacturers of craft spirits, it may be that the definition of what constitutes “craft” spirits could be determined by the courts rather than the industry.
Pending Class Actions
Currently, there is no legal definition for “craft,” or “small-batch,” spirits. However, the American Distilling Institute (the “Voice of Craft Distilling”) defines craft spirits producers as those who are independently owned, with less than 52,000 cases in annual sales and who distill and bottle their product on-site. While ADI’s definition is helpful contextually, it is neither binding nor dispositive in a legal sense.
McNair v. Templeton Rye
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