SAN DIEGO--(EON: Enhanced Online News)--More than two years after the Federal Trade Commission (FTC) issued letters concerning alcoholic beverages containing caffeine and flavored malt beverage containers the FTC has closed its investigation regarding United Brands Company without taking any action. The maker of JOOSE™, United Brands Company, along with three of the company’s competitors in 2010 received a warning letter from the FTC that an investigation was underway looking at their various marketing practices. The FTC cited safety concerns as the reason for the investigation. The FTC recently notified United Brands Company that the investigation has been closed in regard to JOOSE™ products. The President and CEO of United Brands Company predicted no action would be taken against JOOSE™ from the onset of the investigation. “This was a case of guilt by association. We work to be responsible innovators. We have always set and applied high ethical standards for our company. We stand successful and retain our JOOSE™ brand equity," says Michael Michail. The FTC did not offer an explanation or any findings in its notice regarding the closure of the case against United Brands Company.
“suggesting that alcohol containing added caffeine may present unusual risks to health and safety.”
As a result of FTC decision, JOOSE™ can continue to sell its products without having to change its labels or packaging. In a separate action, one of United Brands Company’s competitors is now required to seek approval from the Alcohol and Tobacco Tax and Trade Bureau (TTB) to put an alcohol facts panel on its flavored malt beverages that contain more than two servings of alcohol. Their competitor is also required to make its container resealable if their malt beverage contains more than 2½ servings of alcohol.
The original warning letters from the FTC stated the focus of the concern was alcoholic beverages containing caffeine. At the time, United Brands Company sold a flavored malt beverage that contained caffeine under the JOOSE™ label. The letter cited a number of incidents “suggesting that alcohol containing added caffeine may present unusual risks to health and safety.” The letter followed a spike in the hospitalization of people drinking their competitor’s products.
“We are thrilled the Federal Trade Commission closed the case regarding JOOSE™. We work everyday to formulate beverages that appeal to our customers’ tastes and of course we want them to be safe as well,” says Michail.