The tragedy that occurred in Laos where numerous tourists died from alcohol poisoning demonstrates how fortunate we are for having the U.S. regulatory market, where this occurrence rarely if ever occurs. The Laotian situation occurred because the drinks were tainted with methanol, which was used as a cheap substitute for ethanol. Methanol can be very lethal if consumed and can result in death.

NBWA wrote a blog post where the Laotian situation, or the situation from other alcohol backwaters like Iran occurs because they lack a three-tier system. As the piece states:

“Alcohol regulation in the United States provides an alternative example. Within our nation’s licensed and closed three-tier system for alcohol sales, licensed distributors source alcohol products from licensed alcohol producers and sell only to licensed alcohol retailers. This process creates natural checks and balances, as well as local oversight, that ensures consumer safety is prioritized at all levels of the alcohol market.”

The U.S. provides an alternative system to Laos and Iran, but when it comes to safety it has little to do with the three-tier system and more to do with our rigorous federal process. In order to sell into the market, a producer of alcohol products must register with the TTB its formulas and labels before they sell product in the United States. First, the producer needs approval for its formula, it needs to provide a detailed spec sheet, which demonstrates the ingredients, the process, and the measurement of ingredients for producing its products. Next it needs a certificate of label approval (COLA) from the TTB. The label must be consistent with the formula and not be misleading.

If the producer wants to sell in a specific state, then it is required to present proof that its labels are registered with the TTB. Once the state has evidence that the producer is approved by the TTB, the producer has a right to register its products with the state.

This robust federal process ensures a safe and orderly market.

As for the wholesaler role in the three-tier system, I am still trying to figure out the role they play in health and safety. They do not test product nor are they required to. This is not cannabis where you need to test every product on site. In fact, if a retailer orders a case of wine, I highly doubt it will ever be opened. It will be scanned and sent on its way.

Since Granholm winery shipping has increased exponentially and in some states breweries and distilleries can bypass the three-tier system. In these states, I have not seen anyone die from alcohol poisoning. The key is that all the entities permitted to DTC ship and bypass the three-tier system all maintain products registered with the TTB, which allows them to obtain a state permit.

So, if I want my favorite Laotian wine or spirit, I am not going to depend on the three-tier system to protect my health and safety, but on the TTB’s rigorous federal process. Which basically guarantees I am at a low risk for harm. Without this strict TTB process, the product would pass through to a wholesaler who would not test the product’s integrity and just pass it on.

The situation in Laos is no doubt scary, and I feel for the tourist and their families that went on vacation and never came back.

But the great Laotian scare does not make me shutter here in America. The TTB provides me comfort that all will be alright. It is the last line and the only line of defense for protecting us from methanol poisoning. The TTB has my back and that is all I need. Anything else is providing me no safety benefit.