Drinks Americas Receives TTB Approval for Alternating Proprietorship for Rheingold Brewing Company

Drinks Americas Holdings DKAM today announced that The Rheingold Brewing Company has received Alternating Proprietorship approval from the Alcohol and Tobacco Tax and Trade Bureau. An "alternating proprietorship" is a term used to describe an arrangement in which two or more people take turns using the physical premises of a brewery. Rheingold Beer, which has been growing in volume since its introduction in September of 2010, will continue to be brewed at the historic Lion Brewery. Under the Alternating Proprietorship, The Rheingold Brewing Company will qualify for a reduction in federal excise tax. Going forward, the Company will pay a $7.00 excise tax per barrel on the first 60,000 barrels of beer removed for consumption or sale in a calendar year. Prior to receiving the Alternating Proprietorship, the Company paid $18.00 excise tax per barrel. Patrick Kenny, Drinks Americas CEO stated, "This growth step and milestone allows us to enhance the margins associated with the growing sales of Rheingold Beer, which consumers are both remembering and reacquainting themselves with as our volume over expanding territories grows." Drinks Americas launched Rheingold in September 2010, and the brand is now being sold in New York, New Jersey, Connecticut, Pennsylvania, Georgia, Ohio, Kentucky, Maryland, Michigan, North Carolina, Florida and Texas.