OKLAHOMA CITY -- The state of Oklahoma has placed a moratorium on the approval of any premixed, "alcohol energy drinks" that combine ingredients such as caffeine, guarana and taurine, pending a determination as to the safety of these products. The Oklahoma Alcoholic Beverage Laws Enforcement (ABLE ) Commission was notified on November 2, 2010, that Four Loko--one of the major beverages in the category--would no longer be represented in the state of Oklahoma effective December 3, 2010.
Four Loko's manufacturer, Chicago-based Phusion Projects LLC, was notified that it would [image-nocss] no longer be permitted to deliver shipments of Four Loko into Oklahoma for resale after that date.
In light of the October 8, 2010, incident involving Four Loko in Roslyn, Wash., the ABLE Commission has decided to empanel a group of scientific experts to study the threats posed by premixed, alcohol energy drinks combining ingredients such as caffeine, guarana and taurine.
This moratorium does not affect Four Loko products already in the state or lawfully delivered to wholesalers prior to December 3. After December 3, wholesalers will only be allowed to sell Four Loko to package store and mixed beverage licensees until their inventories are depleted.
Similarly, package store and mixed beverage licensees may purchase Four Loko from wholesalers, and sell Four Loko to the public, until their inventories are depleted.
Phusion Projects LLC, the makers of caffeinated alcoholic beverage Four Loko, commended the ABLE Commission for creating uniform, category-wide standards regarding caffeinated alcoholic beverages sold in the state.
"We appreciate that the state has addressed its concerns about caffeinated alcoholic beverages by developing uniform standards that apply to the entire caffeinated alcoholic beverage category, not just a single product," said Chris Hunter, one of Phusion Projects' three co-founders and current managing partners.
"We don't agree with the notion that combining caffeine and alcohol is inherently unsafe--if that were the case, Irish coffees and rum and Cokes would be banned as well," company co-founder and managing partner Jaisen Freeman said. "But what has happened in Oklahoma is a great example of a regulatory agency applying standards fairly and uniformly across an entire beverage category, rather than singling out a specific product or type of product."
Under Oklahoma's new regulations, until the U.S. Food & Drug Administration (FDA) concludes its now year-long examination of the safety of adding caffeine to alcohol, Phusion will begin selling only noncaffeinated versions of its beverages in Oklahoma. Phusion has submitted a noncaffeinated label to the Tobacco Tax & Trade Bureau (TTB), the regulatory body for alcoholic beverages. As is required for the approval of any new product in Oklahoma, Phusion will submit its noncaffeinated label to the state for approval and the label will then undergo a 45-day review period. The company will also participate in the ABLE Commission's statewide review of caffeinated alcoholic beverages, convening after the start of the year.
In an open letter to regulators on the company's website, Phusion said it welcomes the opportunity to work together to create uniform standards for all liquor and malt-based caffeinated alcoholic beverages. The company also states that uniformity means uniformity in how the laws are written, applied and enforced. (Click here to read the full letter.)
Phusion's third co-founder and managing partner Jeff Wright added, "We're taking this step in Oklahoma to demonstrate that we are a responsible alcoholic beverage company and that we're not turning a deaf ear to the criticism of our products or the way in which a select few have chosen to abuse them or consume them unlawfully."
Meanwhile, the New York State Liquor Authority (NYSLA) has gotten the state's biggest beer distributors to promise they will stop delivering Four Loko and other caffeinated alcoholic beverages to New York retailers by December 10, reported The New York Daily News. And the manufacturer has agreed to stop shipping the beverage to New York distributors after November 19.
The dual agreements will allow the NYSLA to fine any shop owners found to be selling Four Loko without proof it was ordered by the deadline, authorities said.
"I hope this will end the sale of this product in the state," said NYSLA chairman Dennis Rosen.
Senator Charles Schumer said he favored an outright ban but called the agreements "a giant step forward in keeping our kids safe from these toxic and dangerous brews."
Jaisen Freeman, co-founder of Phusion Projects, the company that produces Four Loko, gave a tepid endorsement of the agreement. "We think it shows that we are not turning a deaf ear to what's going on: that a select few have chosen to abuse our products, drink them while underage or break the law and sell them to minors," he told the newspaper.
Also, in North Carolina, Governor Bev Perdue has called for manufacturers of "alcohol energy drinks" to voluntarily withdraw malt beverages containing stimulants from the market in the state until they are found to be safe. The North Carolina Alcoholic Beverage Control Commission will take up the question of restricting these products at its scheduled meeting on November 18.
"Teenagers and college students are drinking these drinks and ending up in the hospital," Perdue said. "The time to act on this is now, before we are faced with the death of one of our young people. The only responsible way to allow these drinks on our shelves is to first carefully review their health effects."
(Click here for previous CSP Daily News coverage.)
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