Alcohol-Infused Products and Retail Restrictions: What Businesses Need to Know

Boozy ice cream, spiked seltzer pops, and tipsy chocolates are examples of alcohol-infused products that have boomed in popularity over the last few years. But with demand comes regulation, and businesses navigating this evolving marketplace must stay ahead of new rules. If your business deals with alcohol-infused goods, it’s time to brush up on the details or risk running afoul of the law.

Enter P.A. 103-0904 (SB 2625), an amendment to the Liquor Control Act of 1934, which brings alcohol-infused products under stricter control.

Effective January 1, 2025, these new regulations will redefine how businesses manufacture, distribute, and sell alcohol-infused items and dictate how retailers display them.

Understanding the New Definition of Alcohol-Infused Products

The updated Liquor Control Act intends to close loopholes and ensure hybrid alcohol-infused products are treated like traditional alcoholic beverages. Businesses handling these items must adhere to the same licensing rules as those selling beer, wine, and liquor (spirits).

Alcohol-infused products is an umbrella term expanded from “alcoholic liquor” to cover food and beverage items with measurable alcoholic content, like laced sauced and boozed chocolates. The law also introduces the concept of a co-branded alcoholic beverage, typing an infused product’s branding into an existing alcohol brand.

The Legal Impact—Who Can Manufacture, Distribute, and Sell?

P.A. 103-0904 requires anyone manufacturing, distributing, or selling alcohol-infused products, including boutique bakeries or large-scale retailers, to have a proper license. Acquiring a permit is non-negotiable if a business plans on producing or selling alcohol-infused goodies, and failure to comply could lead to significant fines and suspension of operations.

Impact on Stores with Sales Floors Over 2,500 Square Feet

The law imposes specific display restrictions on retail establishments with a sales floor exceeding 2,500 square feet (e.g., supermarkets, and big-box stores).

Alcohol-infused products cannot be displayed immediately adjacent to:

• Similar non-alcoholic items (e.g., regular ice cream or chocolates).
• Soft drinks, fruit juices, bottled waters, or snack foods.
• Candies or snack items featuring cartoons or youth-oriented imagery.

The aim is to prevent confusion and ensure that these products are clearly distinguished from items commonly associated with children or general consumption. Smaller stores face fewer restrictions but are still expected to display these products responsibly.

By understanding P.A. 103-0904 and taking proactive steps, businesses can comply with the new rules while continuing to tap into the lucrative market for alcohol-infused products. Stay compliant, stay creative, be responsible, and deliver products that delight your customers. If you should have any questions, contact Rajvi at Gandhi Selim Law Today!