Powdered Alcohol Wins U.S. Approval

Powdered Alcohol Wins U.S. Approval

Drink-Mix Could Hit Stores This Summer as More States Gear Up to Bar Sales

By Tripp Mickle in the Wall Street Journal

Powdered alcohol could be sold in the U.S. this summer.

The Alcohol and Tobacco Tax and Trade Bureau on Tuesday approved labels for a powdered alcohol called Palcohol. Arizona-based Lipsmark LLC, the maker of a booze powder that can be mixed with water like instant tea or lemonade, hopes to begin selling the product soon.

The green light by the alcohol and tobacco tax agency follows a scientific review of Palcohol by the U.S. Food and Drug Administration. That agency issued a statement last summer, saying it didn’t have concerns about the ingredients of the product and didn’t find a legal basis to block it.

Alcohol is regulated at the state level so once a product receives federal approval it can go on sale in most states. In the case of Palcohol, several states have adopted pre-emptive bans and several more are gearing up to ban powdered alcohol.

Lipsmark says Palcohol will come in several varieties—a vodka and a rum, and in three cocktails—Cosmopolitan, Lemon Drop and Powderita, which is designed to taste like a margarita. It has shown the powder in foil pouches that hold the equivalent of one shot of alcohol and can take six ounces of liquid.

A Lipsmark spokeswoman said the company is trying to secure patents for Palcohol and aims to get production ramped up for distribution this summer. She declined to comment on any distribution agreements. The company also plans to make an industrial formulation of powdered alcohol for use for medicinal and manufacturing purposes.

‘We have no real experience with alcohol in a powdered form...’

—Pamela Erickson, a former liquor commission director

The product, a powder that holds alcohol, sparked controversy last year when its original approval by the Alcohol and Tobacco Tax and Trade Bureau was temporarily rescinded. Opponents raised concerns that it might be abused by being sprinkled on food, snorted or used to spike drinks.

Sen. Chuck Schumer (D., N.Y.) last year sent a letter to the FDA encouraging it to ban the product before it became “the Kool-Aid of teen binge drinking.” He subsequently introduced legislation in the Senate that would ban powdered alcohol sales nationwide. The bill was referred to committee in November.

South Carolina, Louisiana and Vermont last year passed laws banning powdered alcohol. Several states are weighing similar legislation now, including Mississippi, Virginia, Ohio, Colorado, North Dakota, New York, New Jersey and Washington.

The product would need to get approval from state alcohol boards to be sold in 17 beverage control states such as Oregon and Virginia. Pennsylvania already issued a ruling saying it couldn’t be sold by its control board, according to the National Alcohol Beverage Control Association.

While several states have banned sales of powdered alcohol fearing underage use, large states including California, Florida and New York have no laws that would limit its distribution.

“All of our regulations are geared toward alcohol as a liquid,” said Pamela Erickson, the former director of the Oregon Liquor Control Commission. “We have no real experience with alcohol in a powdered form and don’t even know what some of the dangers might be.”

Company founder Mark Phillips has taken to YouTube to rebut critics, calling their allegations “completely false.” He said he created the product because he hikes, backpacks and likes “to have a drink when I get to my destination.”

On a previous version of the company’s website, Palcohol acknowledged that it could be added to food but advised people to add it to food “after a dish is cooked as the alcohol will burn off if you cook with it.” It discouraged people from snorting it because “you would feel all pain for little gain.”

Mr. Phillips wasn’t available for comment. A spokeswoman said he has no scientific training but hired scientists to help him develop the product. He has written a book about wine called “Swallow This: The Progressive Approach to Wine” and hosted a show on wine tasting that aired on PBS.