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Timeline And Next Steps

The AMBRU Campaign seeks federal designations for American Brandy and Rum, including Straight categories, to boost a $5–6B industry, create 5,000–10,000 jobs, and drive $1B in exports by 2035. Below, explore the timeline, challenges, market impact, and implementation steps to realize this vision.

International brands dominate global markets. AMBRU will promote exports and tourism, such as an American Brandy and Rum Trail, to enhance visibility.

Timeline for Federal Designation

The AMBRU Campaign is pursuing federal designations for American Brandy/Straight American Brandy, American Rum, and Straight American Rum. As these are new categories, not modifying or deleting existing ones, we are optimistic for a faster TTB review. The proposed timeline includes:

  • Petition Submission (Q3 2025):

    AMBRU will submit a detailed proposal outlining standards for the new categories, as detailed on ambru.org.

  • TTB Review (6–12 Months, Q4 2025–Q2 2026):

    TTB’s Regulations and Rulings Division will evaluate the petition, potentially forming a task force to define standards. New categories may face less resistance than modifications, unlike the 7-year process for American Single Malt Whisky (2017–2024).

  • Public Comment Period (2–3 Months):

    Stakeholders, including distillers and consumers, will provide feedback via Regulations.gov following TTB’s Notice of Proposed Rulemaking.

  • Final Rule Publication (Q3–Q4 2026):

    TTB is expected to publish the final rule within months of review completion, based on historical TTB rulemaking timelines.

  • Implementation (2027):

    Distilleries will adopt new standards for production and labeling, with a compliance transition period.

Challenges and Solutions

Establishing new categories presents challenges, which the AMBRU Campaign is addressing:

  • Regulatory Approval: TTB’s rigorous process requires precise standards. AMBRU proposes clear, non-disruptive definitions to expedite approval, drawing on bourbon’s 1964 designation precedent.
  • Industry Consensus: Diverse distilleries may disagree on standards. AMBRU is engaging stakeholders through forums and consultations to build unified support.
  • Consumer Education: New categories must compete with established brands like Cognac and Caribbean rum. AMBRU will launch marketing campaigns emphasizing American heritage and quality.
  • Market Competition: International brands dominate. AMBRU promotes exports and tourism to boost visibility.
  • Enforcement: TTB’s limited resources may hinder compliance monitoring. AMBRU proposes industry-led quality assurance programs to support enforcement.

    Market Data and Proposal Impact

    The U.S. brandy and rum market is valued at approximately $5.5–6.5 billion in 2025, with domestic sales of $800 million–$1.6 billion, driven by a 6.8% compound annual growth rate (CAGR) for brandy and 5.6% CAGR for rum. The proposed federal designations for American Brandy, Straight American Brandy, American Rum, and Straight American Rum aim to:

    • Boost Exports: Increase brandy exports from $249 million and rum exports from $152 million in 2023 to a combined $750 million–$1 billion by 2035, reducing the $1.5 billion rum import deficit by promoting domestic production.
    • Drive Tourism: Establish an American Brandy and Rum Trail, potentially attracting 1–2 million visitors annually and generating $100–$200 million in economic impact, similar to Kentucky’s Bourbon Trail.
    • Enhance Premiumization: Elevate brand value by defining premium standards, mirroring bourbon’s $4.5 billion domestic market, to position American brandy and rum as global leaders.
    • Support Growth: Encourage innovation across 500–900 craft distilleries, fostering a $5–6 billion industry and creating 5,000–10,000 jobs in distilling, agriculture, tourism, and logistics.

      These categories align with market trends, positioning American spirits globally.

      Implementation Details

      Post-approval, distilleries will:

      • Meet Standards: American Brandy (fruit-based, no additives), Straight American Brandy (2+ years oak), American Rum (<190 proof, sugarcane), Straight American Rum (2+ years charred oak).
      • Update Labeling: Submit Certificates of Label Approval (COLAs) to TTB, ensuring compliance.
      • Ensure Quality: Implement controls to meet standards, supported by AMBRU resources.
      • Leverage Marketing: AMBRU will provide promotional materials to highlight new categories.

      Sources: