On Oct. 1, flavored malt beverages, such as Smirnoff Ice, Jack Daniel's Original Hard Cola and Bacardi Silver, must be off grocery store shelves and sold only in state-controlled liquor outlets.
But it's unlikely any of the products will be available in state liquor outlets by the Oct. 1 deadline because of new labeling regulations.
"All Anheuser-Busch flavored malt beverages will no longer be available in Utah," said Michael Brennan, president of General Distributing Co., the state's largest beer distributor. "I don't think the public understands that 3.2 flavored beverages will be gone."
Brennan reiterated what wholesalers told lawmakers earlier this year. Both Utah regulations and contract agreements prevent his company from placing malt beverages in state liquor outlets.
The new law also targets traditional beers and ales containing flavorings such as lime or raspberry. Distributors must file documents with the Utah Department of Alcoholic Beverage Control, attesting that all alcohol in the flavoring comes exclusively from hops extracts or these products also will be restricted to state liquor stores.
Grocery store stocks of flavored malt beverages are rapidly being depleted and all backup inventory is gone, said the vice president of the state's largest distributer of malt beverages, Dane Carlson of Carlson Distributing.
Lisa Roskelley, spokeswoman for Gov. Jon Huntsman Jr., said the governor supports the new law. Huntsman had used restrictions against malt beverages as a bargaining chip to get legislation passed allowing for stiffer martinis.
Roskelley said liquor manufacturers haven't yet submitted labels for approval but officials will work quickly to approve packaging that complies with the law. She said she did not know if July notices gave manufacturers enough time to redesign labels but market forces will ensure the products will become available.
Zsoka McDonald, spokeswoman for Diageo, the world's largest multinational beer, wine and spirits firm, said the company is reconsidering stocking its flavored malt beverages in Utah "because it may not be worth it from a business standpoint."
Among the company's malt beverages are Smirnoff Ice, Smirnoff Raw Tea and Captain Morgan Parrot Bay.
Gregory Altschuh, representing the industry group Flavored Malt Beverage Coalition, said it's problematic for manufacturers to comply with a bevy of regulations from a single state, particularly when the product is part of a national distribution chain and a small niche in the beer industry.
"It leads one to suspect that many companies may have some reluctance to incur all these additional expenses that Utah regulators are levying on them," he said. "If this is what the Utah Legislature and the governor wanted to accomplish, they've done it."
Jim Olsen, president of the Utah Food Industry Association, said the goal of some advocates pushing for changes in the state liquor law "was to eliminate flavored malt beverages from Utah. Period."
But Art Brown, president of the Utah Chapter for Mothers Against Drunk Driving, said advocates only wanted to restrict sales to keep malt beverages out of the hands of underage drinkers.
The alcohol content of malt beverages is the same as 3.2 percent beer sold in grocery stores. But proponents, including Attorney General Mark Shurtleff, said malt beverages also contain distilled spirits, which under Utah law must be sold in state-controlled stores. Opponents said the amount of alcohol in the flavorings is infinitesimal, about 22/100 of 1 ounce.
The liquor department notified producers they would have to submit labels for approval at the end of July, and although rules weren't finalized until mid August, the proposed regulation "gave manufactures the criteria they could work with," said state Purchasing Officer Tom Zdunich. But at this point, he added, "I don't have any product in hand that has the new labels."

