Distilleries Relieved as FDA Backpedals on Fines

After a public outcry, the FDA rescinds the fines placed on craft distilleries that made hand sanitizer.

On Tuesday, December 29^th, the Food and Drug administration announced that they would impose a $14,060 fine on all craft distilleries that made and sold hand sanitizer amidst the pandemic. This came as a heavy blow to the small distilleries that rose to the occasion. Over 800 came to the aid of their community in 2020.

The many, sweeping lockdowns throughout the country forced restaurants and bars to close their doors to the public. The halting of business would have been enough to put many craft distillers out of business. Instead, they were able to pivot and provide their community with a much-needed product: hand sanitizer. Some distilleries even offered the sanitizer at cost or donated it to first responders.

Black Button Distilling began making hand sanitizer in March. “We are doing this to help our community, to hopefully save lives, and to get our employees back to work. We want to do our part in these unprecedented times,” said owner Jason Barret. “I couldn’t stand by and watch this pandemic ravage my hometown of Rochester. We will work around the clock to help as many as we can.”

The fine print in the CARES Act classifies distilleries that make hand sanitizer as an Over-The-Counter medicine distributor. As such, they are subject to fees. Distillers and the public alike were outraged.

Barret says “I liken it to if you ask your friends to help you move, and they bought the beer, and then they charge you for the beer they brought you.”

Tommy Brunett, co-owner of Iron Smoke Distillery in Fairport, New York, didn’t believe the news. “At first, I thought it was a hoax. I thought it was someone just thought it’d be fun at the end of the year to throw this out there and see who would bite. But it’s not, evidently.”

Chris Swonger, CEO and President of the Distilled Spirits council issued a statement following the FDA’s announcement. “This incredibly frustrating news comes as a complete shock to the more than 800 distilleries across the country that came to the aid of their local communities and first responders. While this fee may be a rounding error to a large pharmaceutical company, this will be disastrous to small distilleries who stepped up to help produce this critical product – it will quite literally bankrupt some struggling businesses.”

On December 30th, Health and Human Services Chief of Staff Brian Harrison announced that the FDA would not enforce the fees.

“Small businesses who stepped up to fight COVID-19 should be applauded by their government, not taxed for doing so,” said Harrison in a statement Thursday. “I’m pleased to announce we have directed FDA to cease enforcement of these arbitrary, surprise user fees. Happy New Year, distilleries, and cheers to you for helping keep us safe!”

Distillers across the country are grateful for the public voices that have defended their businesses.