Phusion Projects, New York State Liquor Authority Reach Agreement: First Company to Voluntarily Cease Selling Caffeinated Alcoholic Beverages in the State

CHICAGO, Nov. 14, 2010 /PRNewswire/ -- Working closely with the New York State Liquor Authority and its New York wholesalers, Phusion Projects, LLC, the makers of caffeinated alcoholic beverage Four Loko, agreed to voluntarily cease distribution of its caffeinated products in the state, effective Friday, November 19.

Phusion will instead begin selling only non-caffeinated versions of its products in New York as the U.S. Food and Drug Administration continues its now year-long examination of roughly 40 caffeinated alcoholic beverage products on the market nationwide.  As part of the agreement, the company will also support the state's alcohol education and awareness programs and has offered to work with the state on a continuing basis to improve and enhance them.

"We were the first company to take this proactive, voluntary step.  And we think it shows that we are not turning a deaf ear to what's going on: that a select few have chosen to abuse our products, drink them while underage or break the law and sell them to minors," said Phusion co-founder and managing partner Jaisen Freeman.

"We understand that the State Liquor Authority wants to address alcohol abuse and underage drinking," Freeman added. "The only effective way to do that is with stricter enforcement of existing alcohol laws and more education and awareness.  This is why the alcohol education component of this agreement was important to us."

The FDA is currently conducting a review of caffeinated alcoholic beverage products that it began in November of 2009 – well before the recent media attention on the category.  As requested, in June 2010, Phusion submitted a "Generally Regarded As Safe" (GRAS) study to the FDA in which an independent panel of scientific experts found that adding caffeine to alcohol is safe. The agency says it expects to complete its review in the coming months.

Under the agreement, Phusion reserves the right to apply to resume the sale and distribution of caffeinated alcoholic beverages, including Four Loko, in the state of New York if emerging science, regulatory developments or other relevant changes in circumstances arise.  The same applies if other alcoholic beverage companies are allowed to distribute and sell caffeinated alcoholic beverages in New York.

In an open letter to regulators this week, Phusion says it welcomes the opportunity to work together to create uniform standards for all liquor and malt-based caffeinated alcoholic beverages.  The company also states that uniformity means uniformity in how the laws are written, applied and enforced.

Making concessions like this is something the company has a history of doing.  It added multiple additional label warnings to its cans at the request of regulators; its alcohol-by-volume warnings are in a font as large as is allowed by law; and, where required, Phusion sells versions of its product with reduced alcohol content.

Additionally, the company works with its distributors to share information about the appropriate way to stock and market its products; it works with retailers to provide point of sale information that reinforces the importance of asking for ID when selling any alcoholic beverage; and it includes warnings and labels on its cans that go above and beyond what the federal government requires – helping to ensure that consumers are informed and that its products don't end up in the hands of minors.

"We still believe that combining caffeine and alcohol is safe - if that weren't the case, Irish coffees and rum and colas would be under scrutiny as well," Freeman added.  "But we want our company to be known for cooperation and collaboration, not controversy."

About Phusion Projects

Phusion Projects, LLC is a Chicago-based national alcoholic beverage company. Its Four Loko and Four MaXed drinks combine alcohol with caffeine, guarana and taurine, while its Earthquake product is a non-caffeinated High Gravity Lager.  From the company's inception, Phusion Projects has been committed to making contributions to communities, operating as a responsible member of the alcoholic beverage industry and setting unmatched standards in this regard. To learn more about Phusion and our commitment to responsible drinking, please visit our website: http://www.phusionprojects.com.  

SOURCE Phusion Projects, LLC

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