Iowa retailers, wholesalers to remove alcoholic energy drinks

On Nov. 17, 2010, the Food and Drug Administrations (FDA) issued a letter of warning to manufacturers of alcoholic beverages containing added caffeine, which stated the products are adulterated under the Federal Food, Drug and Cosmetic Act (FFDCA).
The FDA provided manufacturers with 15 days to bring products into compliance or withdraw them from distribution. Some of the affected products in Iowa include Four Loko and Joose.
The Iowa Alcoholic Beverages Division (ABD) concurs with the Tax and Trade Bureau’s (TTB) position of prohibiting the distribution of any beverage that contains a food additive that is not generally recognized as safe.
The knowing violation of the FFDCA is a violation of Iowa law, which states licensees shall not “knowingly permit or engage in any criminal activity” on the licensed premises. Iowa Code 123.49(2)(j).
Consistent with the terms of the FDA warning letter, the ABD will not take enforcement action before the expiration of the 15-day correction period provided to the manufacturers.  
Any wholesaler or retailer that is distributing or selling affected products in violation of federal law after Dec. 2, 2010, will be subject to enforcement action.  Infractions could result in revocation or suspension of the license or a civil penalty of up to $1,000 per violation.
All levels within distribution and retail have a responsibility to ensure that the product is not available for sale.
Beer permittees and liquor licensees should look to the contractual agreement between the distributor, wholesaler and retailer for guidance on how to remove and dispose of adulterated products. ABD will investigate as needed if any of these products are sold after the deadline.
The FDA press release and an FAQ on the removal process can be found at IowaABD.com.