Distilling Transparency: Addressing Shortcomings in TTB Regulations and Enforcement of Bourbon Distillation Source Labeling

Creighton R. Knight, Distilling Transparency: Addressing Shortcomings in TTB Regulations and Enforcement of Bourbon Distillation Source Labeling, 25 Wake Forest J. Bus. & Intell. Prop. L. 345 (2025).

The allure of bourbon in the United States traces back to the late 19th century when its popularity not only sparked a cultural phenomenon but also laid the groundwork for some of the nation’s earliest consumer protection laws.  Over the last 150 years, bourbon’s popularity has fluctuated.  However, the past decade has seen both a resurgence in popularity and an emergence of bourbon enthusiasts.  Concurrently, the landscape of bourbon production has evolved; it has been marked by record numbers of small-lot or “artisan” distilleries, coupled with the concerning modernized usage of contract distillation and sourcing.  Contract distillation refers to an arrangement where one company hires another company to distill bourbon on its behalf.  Similarly, sourcing refers to the practice of buying aged bourbon from an existing distillery and bottling it under the purchaser’s own label.  These two practices raise questions about authenticity and consumer trust.  

This piece argues for stricter regulations from the Alcohol and Tobacco Tax and Trade Bureau (“TTB”) concerning distillation source labeling for bourbon-designated spirits.  It recommends requiring bottlers to disclose, at a minimum, the state of distillation or, ideally, the specific source of distillation.  It further contends that regulatory reforms should include limiting FDA-related safe harbor protections, implementing a system of distillate source identification comparable to Mexico’s Normal Official Mexicana (“NOM”) certification, and increasing enforcement efforts by the TTB to ensure compliance with existing regulations.  Additionally, this piece examines potential consumer causes of actions and their degrees of success in combating deceptive marketing.  By addressing these issues, this piece ultimately advocates for measures that promote transparency and authenticity within the bourbon industry, thereby safeguarding consumer interests and preserving the integrity of this storied American spirit.

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