Powdered Alcohol Company Gets Federal Approval

By Alexandra Olgin
Published: Wednesday, March 11, 2015 - 4:05pm
Updated: Thursday, March 12, 2015 - 9:01am

A powdered alcohol product got final federal approval for the second time. The Alcohol and Tobacco Tax and Trade Bureau accidentally permitted it for a few weeks last year.

Palcohol is freeze-dried alcohol packaged in a four-by-six-inch pouch. The product can be added to liquids to make them alcoholic. It was developed by Lipsmark LLC, a Tempe-based company.

Creator Mark Phillips explains how to use it in a video on the company’s website.

“All I do is pour about five ounces of water in there, then you zip the bag closed tightly and shake," he said. "It takes about 30 seconds for the powder to dissolve.”

Federal approval is only the first step. The company now has to get authorization from each state in which it plans to sell Palcohol. States regulate the sale and advertising of alcohol.  

Lee Hill with the Arizona Department of Liquor said this is new territory.

“Liquor is very clearly defined by ounces and by alcohol volume in Arizona liquor law. So, should they come to us seeking a liquor license ... I don’t know how we would respond because there is no liquor license for powder," Hill said.

The Arizona Legislature is considering a bill that would make it illegal to buy, sell, possess or consume powdered alcohol. Until that bill becomes law the product isn’t regulated by the state.  

Updated at 4:46 p.m.

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