Elliot Basner

Are Smaller 375ml Formats the New Sweet Spot for US Sales of Distilled Spirits? The alcohol beverage industry generally, and the distilled spirits segment in particular, are dealing with several market challenges. Inflation and tariff-related price increases on imported spirits are a serious but hopefully short-term challenge. Consumer trends pointing to reduced consumption are a disturbing and potentially longer term concern. Several large spirits suppliers are looking to their smaller-sized formats, particularly the 375ml packaging, for brand support. Some industry observers speculate that the significant shift by consumers away from large sizes, e.g., 750 ml, one liter, and 1.5 liter packages, in favor of smaller 375ml and even the 50 ml "minis" sizes is due to tighter consumer budgets and reduced consumption The U.S. Alcohol and Tobacco Tax and Trade Bureau (TTB) recently updated its "standards of fill" for distilled spirits, expanding the number of approved container sizes to include 15 new options, 10 of which are under the industry standard 750ml size:  187ml, 250ml, 331ml, 350ml, 355ml, 475ml, 500ml, 570ml, 700ml, and 710ml. Case in Point: The 375ml size allows consumers who are reducing their alcohol intake to continue to enjoy premium products, while still spending less. Even the 50 ml packages are gaining popularity for occasion-based consumption; consumers view these easily carried packages as being ideal for outdoor concerts, festivals, and sporting events. As this trend is likely to continue, all tiers of the alcohol beverage industry have some homework to do: -- Producers should consider which size best fits the needs of the particular consumer population they are targeting. -- Distributing wholesalers would be wise to evaluate their capacity to transport and inventory greater quantities of a broader range of the smaller packages. -- Off-premise retailers should reevaluate their current inventory capacities, as well as the organization of shelf space in their stores, to accommodate increasing consumer demand for the smaller spirits packaging. The alcohol beverage industry continues to face numerous new challenges. In some instances, though, silver linings are available to those industry members who recognize trends and do their homework. #alcoholbeverage #distilledspirits #smallerpackaging #375ml #50ml

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ECONOMIC DATA SHOW THE IMPACT OF RETALIATORY TARIFFS ON AMERICA'S ALCOHOL BEVERAGE INDUSTRY Recent retaliatory tariffs are imposing a significant hardship on America's alcohol beverage industry. -- Tariff-related costs and trade war posturing significantly reduced America's distilled spirits exports in the second quarter of 2025. After a 1% year-over-year increase in the first quarter, exports overall fell by almost 10% in the second quarter. Exports to Canada were particularly affected, dropping 85%! -- America's wine industry suffered as well. Wine exports in June of 2025 fell by 40% relative to those measured in June of 2024. -- Even U.S. beer exports fell by 31% in June relative to the same month in the year before the current retaliatory tariffs were imposed. For industry members, reduced exports cost companies over 90 million dollars in lost sales just during June alone. Continuing retaliatory tariffs could threaten American jobs at all levels of America's "three-tier system" of alcohol suppliers, wholesalers and retailers. For American consumers, tariffs on alcohol beverages are especially challenging for foreign products that by law are appellation controlled, meaning that they can only be produced in their specific place of origin. Examples include Champagne (France), Tequila (Mexico), and Oktoberfestbier (Germany). Canada and the U.S. recently agreed to end retaliatory tariffs on most products covered by the USMCA Trade Agreement; alcohol beverages are included, although steel and aluminum are not due to national security considerations. Hopefully, this will lead to further tariff reductions with other markets as America's trade representatives continue to negotiate reasonable and responsible agreement for international commerce.

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🍺 State compliance ≠ federal compliance. Here’s a California-specific rule that catches a lot of breweries off guard: 👉 In California, if a beer is above 5.7% ABV, the alcohol content must be stated on the label. Below that threshold? Federal rules apply — and ABV disclosure is optional. This isn’t a federal TTB rule. It’s a state-level labeling requirement that sits on top of federal compliance. Why this matters in practice: A label can be federally compliant and still be non-compliant in California Breweries expanding distribution often discover this after labels are printed Fixes mean rework, delays, and wasted inventory This is exactly the problem we’re building RegPath to solve: Not just “is this label COLA-ready?” But “is this label compliant everywhere you plan to sell it?” State nuance matters. Thresholds matter. Details matter. 🍻 www.regpath.io

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This is an interesting article about the evolving role of in-house lawyers in business. We often say the role is changing — and I couldn’t agree more. It’s no longer about being a lawyer inside a business; it’s about being a business leader who happens to be a lawyer.

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🍻Brewers Association’s economist finds beer’s recent performance challenges are not noticeably impacted from THC, cannabis or hemp derived beverages (link in comments) The analysis concludes: ℹ️ beer’s recent performance challenges are broad-based ℹ️ states with and without cannabis access are declining ℹ️ states with hemp-derived THC beverages are tracking close to the national average ℹ️ the differences that do exist are generally small relative to overall category contraction

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There’s been a powerful shift in the CPG industry: smaller, mission-driven food brands are capturing a disproportionate share of growth, as compared to legacy labels. The Wall Street Journal recently highlighted this trend. Take Chomps, for example — a once-niche beef jerky company that has scaled from $70 million in 2021 to roughly $660 million in sales by reimagining a snack traditionally known as something you would pick up at a gas station, as a sugar-free, high-protein, health-conscious product for modern consumers. The same pattern is playing out across snacks, beverages, and packaged foods: • Poppi turned soda into a gut-health beverage brand. • LesserEvil made popcorn a clean-label, lifestyle statement. • And legacy giants like PepsiCo and Hershey are buying in, acquiring these upstarts to stay relevant at huge valuations. This evolution reflects more than changing tastes — it’s about consumer values, wellness, and authentic branding. Consumers want transparency, functional benefits, and stories they can connect to. For business owners and founders, this wave underscores a crucial reality: The most valuable assets these brands own aren’t factories or distribution channels — it’s brand equity and intellectual property. Strong trademark portfolios, trade dress protection, and clear ownership of formulations and designs are what make these companies scalable, investable, and acquisition-ready. As the line between food, wellness, and lifestyle continues to blur, the legal foundation behind brand protection is becoming a growth strategy in itself. In today’s CPG economy, brand equity is business equity. #CPG #BrandStrategy #Trademarks #BusinessLaw #HealthAndWellness #Entrepreneurship #IPLaw

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A recent cyberattack on a wine producer has led to a class-action lawsuit, highlighting the importance of robust cybersecurity measures in the alcohol industry. Learn how to minimize legal risk and reputational harm: https://lnkd.in/eHCFXp-p

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Is your sensitive data categorized? Maryland's MODPA goes into effect Oct 1. This law limits collection of SPI to only when strictly necessary and prohibition on sale of SPI to opt in only. I'd love to hear if your organization has made changes to its digital tracking technology policies as a result.

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A Columbia bar is suing over South Carolina’s liquor laws — challenging how the state regulates service and enforcement. On the surface, it’s one venue vs. the system. In practice, it’s about regulatory friction. That framing matters. Liquor law enforcement isn’t just compliance paperwork. It determines: • Operating hours • Service rules • Penalty exposure • Business viability When a bar goes to court, it signals one of two things: 1️⃣ A breakdown in communication 2️⃣ A belief that the regulatory structure is uneven or outdated The sharper question: Is enforcement protecting public safety — or creating operational unpredictability? Hospitality already runs on tight margins: • Labor volatility • Insurance increases • Liability exposure • Shifting consumption patterns Layer regulatory ambiguity on top, and capital gets cautious. For Producers: On-premise instability affects volume and brand presence. For Distributors: Legal uncertainty impacts account planning and territory confidence. For Operators: Consistency in enforcement matters as much as the rules themselves. This isn’t about whether alcohol should be regulated. It’s about whether the rules are clear, evenly applied, and economically sustainable. When businesses feel compelled to litigate, it suggests tension between intent and execution. The next phase of alcohol policy won’t just be about tightening or loosening. It will be about clarity. And clarity is often more valuable than leniency. #BeverageIndustry #Regulation #Hospitality #Distribution #AlcoholMarkets

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While the previously insane 145% have been reduced to 30%, the problems caused have been replaced with new problems. At Licensing Expo, manufacturers are struggling having to sell products with basically none to little profit (where before it would have been at a loss). The dilemma is compounded with ports now scrambling to take on shipments willing to eat the current tariffs. However, now the concern is whether the new delays at ports means they will be paying the 30% tax or a much higher amount if the shipments hit the US ports after August 12, in which case if no deal is struck it goes back to the highest rate, or possibly something in the middle, who knows? So companies are gambling with whether to make little profit, their old profits or a loss. Two industries I did hear are benefitting most from the current situation are apparel and candy/snacks. Fast fashion and basic apparel particularly have more manufacturing options other than China. The non-de minimus rate hurt the Temu’s, Shein and Alibabas the most and shifted attention back to traditional fashion and apparel sources. Candy and snacks are typically made domestically or with neighbors unaffected by the high tariffs. As retailers struggle to fill shelves this fall, customers are going to see some categories stretch into areas they typically don’t belong in.

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Excellent reminder that not all DTC states are equal. These five states place significant restrictions on wineries/wines that are sold in wholesale within their borders.

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Frank A. Segall, co-chair of Blank Rome’s national Cannabis practice said, “Needham Bank has pioneered commercial lending in the cannabis industry and this uniquely structured credit facility for Curaleaf—truly one of the leading players in the cannabis industry—which will continue to enable Curaleaf to being a dominant industry leader as it gains institutional acceptance. It was a privilege to assist Needham Bank and Curaleaf in forging this partnership and structuring this facility.” The Blank Rome team was led by Frank A. Segall, who arranged and structured the loan for the parties and closed it on behalf of Needham Bank with Gustav Stickley V, Caitlin Barrett, and Benjamin I. Holman. For more information on this transaction, please read the press release: Curaleaf Upsizes Revolving Credit Facility to $100 Million with Needham Bank (October 14, 2025).

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New Jersey operators: If your menu can sell statewide, your logistics should scale statewide. Passing Puff Delivery enables same-day, compliant cannabis delivery across New Jersey without adding operational burden to your team. • Flat-rate delivery • Pre-orders only (no cash handling) • W-2, CBIC-badged drivers • Lockbox + Onfleet-powered logistics 👉 Activate local or statewide delivery with Passing Puff. #NewJerseyCannabis #CannabisOperators #CannabisLogistics #CannabisDelivery #CannabisBusiness

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🚨 Updates from New York's #Cannabis Control Board Meeting Today: 📝 More #PCA Waiver requests were considered today than at any prior Cannabis Control Board meeting. Two PCA Waiver requests were denied (and license applications denied as a result. In both instances, the PCA Waivers were requested outside of outside of New York City. 🤔 📝 The New York State Office of Cannabis Management is working on an update to the #LOCAL Map that will show where retail license applicants have applied for #PCA Waivers. This would be a hugely helpful development as provisional licensees would be able to see where there is a potentially conflicting location before spending significant time and resources negotiating a lease and awaiting #OCM approval. 📝 Amended packaging, labeling, marketing and advertising regulations (#PLMA regulations) were approved. Big changes include the ability to use certain types of "billboards" (defined very specifically) and the regulation of, as opposed to prohibition of, certain types of discounts and customer loyalty programs. It is likely that these PLMA regulations will continue to be revised to be more business-friendly. NOTE: This is not legal advice, but a high level overview of a couple of significant changes to the PLMA regulations. The devil is in the details, and you should consult an attorney. 📝 Average time for a #SEE dispensary to open after receiving their license is 194 days! A large part of this is driven by a lack of access to capital and a lack of support in understanding how to launch in this highly regulated industry. This is another reminder that it takes a team to launch quickly and successfully. #cannabis #cannabisnews #cannabislaw #MRTA

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Palantir Technologies's decision to relocate its headquarters to #Miami marks a significant milestone for the city's development as a global hub for technology, business, and innovation. This move underscores the growing recognition of Miami as a prime destination for companies at the intersection of #tech, #data, #defense, #AI and international markets. The arrival of a major organization like Palantir will have an immediate impact on the legal, compliance, and regulatory landscape in the area. This shift will drive an increased demand for tech-forward legal talent and elevate the sophistication of corporate governance and operational needs. Palantir's presence not only enhances Miami's reputation as a key legal market but also positions it prominently on the national stage. The momentum in Miami is palpable, and the opportunities ahead are expanding. Welcome to Miami, Palantir.

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Maryland Cannabis Businesses: Funding Details Announced – Application Portal Not Yet Open The Cannabis Business Assistance Fund (CBAF) has released new information on available funding for Social Equity Conditional Licensees in Maryland’s adult-use cannabis market. Funding Amounts (New Information): Dispensary: Up to $131,250 (Standard) / Up to $43,750 (Micro) Processor: Up to $183,750 (Standard) / Up to $61,250 (Micro) Grower/Cultivator: Up to $525,000 (Standard) / Up to $175,000 (Micro) Funds will be distributed in four tranches based on milestone achievements, each tied to specific operational benchmarks. The application portal is not yet open, but once it is, prospective applicants should register early to streamline the Tranche 1 funding request process. Questions? Reach out to me or my Vicente LLP partner Meg Nash – this is a significant funding opportunity.

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Kraft Heinz may be walking back its 2015 mega-merger, exploring a spinoff of legacy brands like Velveeta and Oscar Mayer. The goal is to unlock value by separating faster-growing condiments from slower-moving packaged foods. It’s a high-risk move in a market that’s shifting away from traditional name brands and toward health-conscious, lower-cost options. Without a future acquisition, the upside could be limited. Still, the potential $20B split would mark one of the biggest consumer goods deals of the year. #MergersAndAcquisitions #ConsumerGoods #CorporateStrategy

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