Oklahoma's ABLE Commission Creates Uniform, Category-Wide Regulations on Caffeinated Alcoholic Beverages

In an Open Letter, Company Says it will Work with Regulators Nationwide on Similar Standards

CHICAGO, Nov. 11, 2010 /PRNewswire-USNewswire/ -- Today, Phusion Projects, LLC, the makers of caffeinated alcoholic beverage Four Loko, commended Oklahoma's Alcoholic Beverage and Law Enforcement Commission for creating uniform, category-wide standards regarding caffeinated alcoholic beverages sold in the state.

"We appreciate that the state has addressed its concerns about caffeinated alcoholic beverages by developing uniform standards that apply to the entire caffeinated alcoholic beverage category, not just a single product," said Chris Hunter, one of Phusion Projects' three co-founders and current managing partners.

"We don't agree with the notion that combining caffeine and alcohol is inherently unsafe – if that were the case, Irish coffees and rum and Cokes would be banned as well," company co-founder and managing partner Jaisen Freeman said. "But what has happened in Oklahoma is a great example of a regulatory agency applying standards fairly and uniformly across an entire beverage category, rather than singling out a specific product or type of product."

Under Oklahoma's new regulations, until the U.S. Food and Drug Administration concludes its now year-long examination of the safety of adding caffeine to alcohol, Phusion will begin selling only non-caffeinated versions of its beverages in Oklahoma. The agency began its examination of roughly 40 caffeinated alcoholic beverage products in November 2009 – well before the recent media attention on the category – and expects to complete it in the coming months. Late last year, Phusion Projects submitted a "Generally Regarded as Safe" (GRAS) study in which an independent panel of scientific experts found that adding caffeine to alcohol is safe.

As a first step, Phusion has submitted a non-caffeinated label to the Tobacco Tax and Trade Bureau (TTB), the regulatory body for alcoholic beverages.

Next, as is required for the approval of any new product in Oklahoma, Phusion will submit its non-caffeinated label to the state for approval by the 15th of the month and the label will then undergo a 45-day review period. The company will also participate in the Alcoholic Beverage Law Enforcement Commission's state-wide review of caffeinated alcoholic beverages, convening after the start of the year.

In an open letter to regulators on the company's website, 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.

Phusion's third co-founder and managing partner Jeff Wright added, "We're taking this step in Oklahoma to demonstrate that we are a responsible alcoholic beverage company and that we're not turning a deaf ear to the criticism of our products or the way in which a select few have chosen to abuse them or consume them unlawfully."

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 want our company to be known for cooperation and responsible corporate citizenship – not controversy," Hunter said. "We recognize and embrace our responsibility as an alcoholic beverage company and we will continue to do all we can to produce safe products and help people enjoy them responsibly."

About Phusion Projects

Phusion Projects, LLC is a Chicago-based alcoholic beverage company that sells its products in 47 states nationwide. 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