Palcohol is Back

by Robert C. Lehrman on March 10, 2015

Palcohol is back.

After approval from out of nowhere about a year ago, and cancellation of the same approvals a few days later, it is back. I have it on good authority that TTB has ironed out the kinks and approved the labels this week. Sen. Schumer will not be pleased (aka, he may be very pleased to have this whipping boy back within striking distance). Many states have already banned it. But this gives new life to this new category. Hats off to Mark Phillips for weathering the storm and persevering.

Below is the approved label as of 2014 alongside the label as approved on March 10, 2015. There are small, technical changes, mostly relating to how to measure the taxable commodity. Boxes 20 and 23 reconfirm that it took Mark almost a year to get this approval. The back label makes it look like an awful lot of work and controversy for a small amount of alcohol (when prepared, it only has half the liquid of a beer, and 1/4 the abv compared to vodka?!?).

In an email on the day of re-approval, Mark, the force behind Palcohol, explained:

Yes, Palcohol is back. It’s been quite a journey, over four years to get Palcohol approved by the TTB. I do want people to know that the TTB has been great to work with. Very fair and professional. And I’m not just saying that to kiss up to them as they have now approved Palcohol and it’s done.

The next challenge is trying to stop the states from banning it based on misinformation and ignorant speculation. It is a mistake for a state to ban Palcohol because…

1. Why don’t legislators remember that Prohibition was a complete failure? By banning powdered alcohol, the state will create a black market which means the state loses control of the distribution. And then underage drinkers will have easier access to it. In addition, the state will spend precious resources trying to enforce the ban and it probably won’t work. And lastly, they will lose the significant tax revenue from the sales of legal powdered alcohol.

2. Since when is it the role of the government to play nanny and tell us what we can and cannot drink? There is a tremendous demand for powdered alcohol from individuals and businesses to use it responsibly and legally. No matter how well-intentioned, the legislature exists to protect our rights to live how we choose, not to use coercive power to force their values on us. Palcohol has so many positive uses in medicine, energy, the military, industry, recreation, etc. (detailed on our website, www.Palcohol.com). Don’t deny the citizens and businesses the right to have access to this revolutionary new product based on unfounded speculation.

3. It’s hypocritical to ban powdered alcohol and not liquid alcohol. The FDA and TTB consider powdered alcohol in the same category as liquid alcohol. Why would you ban one and not the other? We believe the big liquor companies are using their money and lobbyists to encourage bills to be introduced to ban powdered alcohol to protect their market share and profits.

4. There are no valid reasons to ban powdered alcohol. The two federal agencies that have jurisdiction over alcohol, the FDA and the TTB, have reviewed Palcohol and tested it and found no problems with allowing it to go forward to be approved for sale.What information does anyone have that the federal agencies don’t have that would cause one to ban it….especially since no one has had access to the product and has no first hand knowledge of it? It’s irresponsible to pass laws on based on speculation.
   While several states had a knee-jerk reaction and banned it early on, we see the tide is shifting and legislators are becoming more informed. Thus, most recently, in the last week, three states have opted not to ban it and chose to regulate and tax it like alcohol….which it is. We hope the other states will follow suit.
   There is not one compelling, verified reason to ban powdered alcohol. In fact, banning it would be the most irresponsible action as it will:
   1. Create a black market, straining the state’s resources to enforce the ban 2. Make it easier for underage users to get it 3. Deny the state substantial tax revenue 4. Deny the citizens and businesses access to a revolutionary new product that has so many positive benefits.
   Because of those reasons, powdered alcohol should be legal, regulated and taxed just like liquid alcohol.
   Mark Phillips