TTB Clarifies Return Policy For “Freshness Dated” Beer

Brewers who use “freshness” dating on their packaging have asked for clarification from the TTB as to whether retailers can return beer to their wholesalers after it has passed the freshness dating.  Apparently this practice may violate the Consignment Sales provision of the Federal Alcohol Administration Act 27 U.S.C § 205(d),  & TTB regulations.  These acts prohibit the sale of malt beverages with “Privilege of return” and clearly define that there must be unusual circumstance to allow for that return.

The TTB has found in the past that returns of product that are “

overstocked, slow moving, or are seasonal in nature, such as
holiday decanters, and certain distinctive bottles do not constitute returns for ordinary and usual commercial reasons.”

The TTB has made the following recommendation for Freshness Dated products:

Under the following conditions, TTB will consider the return of malt beverages for cash or credit against outstanding indebtedness or exchange of such malt beverages for freshness reasons as a return by a retailer for ordinary or commercial reasons under 27
CFR 11.32:

 The brewer has policies and procedures in place that specify the date the retailer must pull the product;
 Such brewer’s freshness return/exchange policies and procedures are readily verifiable and consistently followed by the brewer;
 The container has identifying markings that correspond with this date; and
 The malt beverage product pulled by the retailer may not re-enter the retail marketplace.

TTB believes this policy addresses the realities of modern marketing practices while minimizing the possibility that the industry will use freshness dating returns as a subterfuge for disposing of slow-moving products.
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