Nashville Redefines Beer - Can You Still Sell Those RTDs?

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Nashville has enacted a city ordinance that makes the definition of beer consistent with state law. Previously, the Metro Nashville Beer Board allowed the sale of RTDs made from distilled spirits with a beer permit, if the total alcoholic content was under 8% by weight. RTDs are ready to drink beverages, for the uninitiated. 

Problem was, if you put one drop of spirits in a drink, under Tennessee state law, the drink is an alcoholic beverage and requires a liquor license from the Tennessee Alcoholic Beverage Commission. The state made this clear in an amendment to state law in 2023. You can read more about the 2023 law here

Under the new Nashville law, businesses that only have a beer permit cannot sell RTD's that contain spirits or wine. Your business must have a liquor license to sell High Noon, Cutwater and other spirits-based RTD's. 

Hear that catchy refrain from Drinkin’ Claws?

Cuz there ain't no laws
When you're drinking claws
You can have a good time
Anytime
Feels like summertime
Daydrunk just because 

How can you tell if a beverage contains spirits? Generally, products that contain spirits clearly advertise the name of the spirit:

 Vodka and Soda

Margarita Made with Cutwater Tequila

Reposado Tequila

RTD labels that do NOT contain spirits can be deceptive, but they do not advertise the name of the spirit. For example, RTDs that say Margarita or Agave, but do not mention Tequila, probably do not contain Tequila. These are safe to sell as beer, provided the alcohol content is less than 8% ABW or 10.1% ABV.

For example, this Ranch Water references the “Taste of Agave Nectar,” but no mention of Tequila:

Ranch Water

If you can buy it from your beer wholesaler, it probably is beer under state and local law. You can sell it with your beer permit.

If your restaurant or bar has a liquor license, it doesn't matter what kind of alcohol is in your RTD – you can legally sell it.

Nashville's new definition of beer mirrors the state law:

“Beer” means products made from the normal alcoholic fermentation of malt or other cereal grains, sugar, or fruit ingredients used to make cider, and having an alcoholic content of not more than eight percent (8%) alcohol by weight and that do not contain distilled spirits or wine as defined in § 57-3-101; provided, that at least fifty-one percent (51%) of the overall alcoholic content by weight in the finished product is obtained by the fermentation of malt, other cereal grains, sugar, or fruit ingredients used to make cider, and no more than forty-nine percent (49%) of the overall alcoholic content by weight in the finished product is obtained by the addition of flavorings or other non-beverage ingredients containing alcohol.

Anyone need a cocktail?

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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