Colorado Opts to Regulate Instead of Ban Powdered Alcohol

March 31, 2015

Powdered alcohol, a product marketed as a fast way to mix and carry drinks on the go, will be taxed and regulated like liquid booze in Colorado with a bill signed into law Monday by Democratic Gov. John Hickenlooper.

The bill Hickenlooper signed into law gives the state’s liquor enforcement division authority to regulate powdered alcohol like other spirits, meaning it can’t be sold to minors and it will be available only in places already authorized to sell alcohol.

The product, named Palcohol, is a powder in a small pouch to which water is added for the equivalent of a shot of vodka or rum. It’s also produced in two cocktail varieties: Powderita and Cosmopolitan.

This month, the Alcohol and Tobacco Tax and Trade Bureau approved its sale and the company that owns the product, Lipsmark, says it hopes to start selling it this summer.

At least five states, including Alaska, Louisiana, and Vermont, passed legislation banning Palcohol before the product’s approval. Nearly three dozen bills in 24 states were introduced regarding powdered alcohol this year, according to the National Conference of State Legislatures.

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