Saturday, September 7, 2019

"How Tax Policy Gave Us White Claw"

Because White Claw is brewed like beer, it’s taxed like beer, which is important because beer is taxed in the U.S. at a much lower rate than spirits. If you made a product similar to White Claw by mixing vodka with seltzer and putting it in a can, a six-pack would be subject to almost $2 in additional taxes when sold in New York City.

Because of this tax quirk, beverage companies have long sought ways to make flavored cocktail-like beverages for the U.S. market by brewing instead of distilling.


The key advancement with White Claw and its competitors in the “spiked seltzer” market is the use of sugar base for fermentation
*Previously: "Inside the Biggest Wine Hoax in History"