Legal Considerations When Launching a New Rum

Background Information

An alcoholic beverage's "proof" is the percentage by volume of alcohol in a beverage and is calculated by doubling the percentage of alcohol in each beverage. The highest possible alcohol proof is 191.2. Any higher, the alcohol would be converted into an azeotrope with water. Typically, a beer ranges from 10 to 14 proof, a glass of wine can be from 18 to 25 proof and mixed drinks have an average proof of 80.

The true problem lies with the uneducated drinkers; people who are unaware of the different proofs and amount of alcohol in each beverage. College students are often targeted as binge drinkers and alcoholics. This is because many students do not realize the short and long-term effects of alcohol on their systems in addition to the dangers that come along with binge drinking. Persons who understand that strong-proof alcohol is more potent than a lower-proof and drink responsibly typically do not have a problem, but persons who fail to realize that they should not drink as much of a high-proof alcohol because it is stronger (and the side effects are greater) place not only themselves in danger, but also those around them .

There will always be persons who believe that alcohol should be completely prohibited and should under no circumstances advertised, but until it is banned in the United States it is better to take a proactive approach and place the responsibility back on the alcohol manufacturers. If all alcohol companies would limit the proof in their products to 130-proof, the higher proof alcohols would be eliminated and consumers would be spared from being exposed to health risks and even death. Because most alcohol consumers are not educated, they typically consume the same volume of drinks despite the strength of their beverages. If this continues and the potency of the drinks is decreased, people will not become as inebriated as they do now; which in return lowers the risks for themselves and others.

Product/Target Market

It is important to manufacture an alcoholic product at no higher than 130-proof alcohol because of the endless risks that are associated with alcohol consumption. High proof alcohol (190 proof) has been deemed illegal in U.S. states including Florida, California, Georgia, New York, Hawaii, Massachusetts, Maine and more. The reasoning for prohibiting the sale and consumption of this grade of alcohol content is the high risks inherent with its consumption. Customarily, alcohol this strong is used for cleaning medical equipment and not for human consumption.

Our product, will target young professionals ranging from 21 to 25 years of age. The price of the individual sized bottle will be thirteen dollars. It is being positioned as the mid-range brand. Although not designed as a high end product, it will still be considered a premium alcoholic beverage.