DISCUS Urges Texas Senate to Require Private-Label Disclosure by Retailers

If there was any doubt that the downturn in alcohol beverage consumption is hurting major distillers, that was ended Tuesday afternoon when the Distilled Spirits Council of the U.S. distributed a press calling for the Texas legislature to ensure there are "clear rules to help consumers make informed purchasing decisions while ensuring independent brands have a fair opportunity to compete in the marketplace."

The target of this release is private-label spirits such as Kirkland, sold by Costco, or Spirits Direct, sold by Total Wine.

"Texas consumers deserve to know when a retailer has a financial stake in the products being sold or recommended to them," said Corey Staniscia, DISCUS vp-state government relations. "Transparency helps consumers make informed decisions and gives them confidence that they have all the information they need when choosing a product."

The press release goes on to note that "private-label and control-label spirits are generally products manufactured for or produced exclusively for a retailer, giving that retailer an economic interest in the brand’s success."

"Many consumers have no idea that the store recommending a product may also benefit financially if the consumer chooses that brand," said Staniscia. "Private-label products should succeed because consumers choose them, not because they receive preferential treatment in the marketplace."

In testimony before the committee, DISCUS encouraged lawmakers to consider a framework that promotes transparency through clear disclosure of retailer ownership or financial interests in a spirits brand, safeguards against deceptive look-alike products and protections against sales practices that unfairly steer consumers toward retailer-affiliated brands without their knowledge.