Powdered alcohol: Ban it or regulate it?

• Author: Morton, Heather

Companies continue working to bring powdered alcohol products to market-even though a majority of states have banned them.

Powdered drink mixes to which consumers add their own liquor to create adult beverages are still legal; however, companies that make them are looking to expand into actual powdered alcohol products that require only the addition of water.

The U.S. Alcohol and Tobacco Tax and Trade Bureau approved labels in May for Lieutenant Blender's Cocktails in a Bag. The Texas company is also set to begin producing a margarita mix, called Cheata-Rita in a Bag. Lieutenant Blender's is following in the footsteps of Lipsmark LLC, an Arizona company developing "Palcohol"--freeze-dried rum, vodka and cocktail mixes, including a margarita variety called Powderita.

This year, Oklahoma and South Dakota joined the 34 other jurisdictions that have passed laws prohibiting the sale of powdered alcohol products. Maryland's law is a temporary two-year ban. Minnesota's one-year temporary ban expired on June 1.

Colorado, Delaware and New Mexico have taken a different approach by including powdered alcohol in their statutory definitions of alcohol, so that the products can be regulated similarly.

Concerns about powdered alcohol center...