Case Study 2

​

​​

• The 700ml bottle size became legal for spirits in the U.S. on December 29, 2020, when the Alcohol and Tobacco Tax and Trade Bureau (TTB) published a final rule expanding the "standards of fill" for distilled spirits and wine. This change allowed for the legal import and sale of bottles in the 700ml size, which had been the standard in the European Union for decades. 

​

​

Why a distillery might benefit from switching from 750 ml to 700 ml

1. International Market Alignment

   • Trade and export: 700 ml is a common standard in Europe and other regions. Using 700 ml simplifies export compliance, reduces need for alternative bottling lines or labels, and makes the product shelf-ready for international retailers.

   • Branding consistency: A single bottle size for domestic and international markets simplifies packaging strategy and maintains consistent brand presentation.

2. Cost and Supply Advantages

   • Glass availability: 700 ml bottles are widely produced for the global market; depending on supply chains and glass manufacturers, 700 ml bottles can be less expensive or more readily available than specialized 750 ml formats, especially during shortages.

   • Freight and material efficiency: Slightly smaller bottles reduce weight and volume marginally at scale, potentially lowering shipping costs and packaging materials per case.

3. Marketing and Shelf Placement

   • Differentiation: 700 ml can visually distinguish a product on shelves dominated by 750 ml bottles; for premium brands, a distinct bottle profile can reinforce a European or craft positioning.

   • Shelf optimization: Some international retailers and display fixtures are designed for 700 ml bottles; adopting 700 ml can improve fit and presentation in those channels.

4. Pricing and Perception

   • Premium framing: Some brands use non-U.S. standard sizes to signal export-quality or artisanal positioning; consumers may perceive 700 ml as aligning with global premium spirits.

   • Price elasticity: Distilleries can adjust pricing strategies around the slightly smaller volume—either maintaining price for higher per-milliliter revenue or lowering price to remain competitive—giving flexibility in margin management.

5. Regulatory and Labeling Flexibility

   • Metric labeling: Using 700 ml simplifies metric-only labeling for international shipments and reduces the need for dual metric/imperial labels, lowering label complexity and costs.

   • Compliance ease: In some export scenarios, a 700 ml bottle avoids repackaging or relabeling to meet import-country standards.

6. Environmental and Sustainability Considerations

   • Marginal reduction in materials: A 50 ml reduction per bottle across large runs reduces cumulative alcohol volume shipped and packaging materials, contributing modestly to sustainability goals.

Trade-offs and considerations

• Consumer expectations: U.S. consumers are accustomed to 750 ml for spirits; switching may prompt questions or negative perceptions if not communicated well.

• Price-perception risk: Maintaining the same price on a smaller bottle increases price per ounce, which may be perceived as a hidden price increase.

• Inventory and logistics: Existing cases, fillers, corks, caps, and labeling machinery may be optimized for 750 ml; switching incurs changeover costs and potential capital expenses.

• Regulatory nuance: Although federal rules permit metric sizes, individual state laws and retailer contracts should be reviewed to ensure market access and labeling compliance in target states.

• Marketing and packaging redesign: Label artwork, neck tags, and secondary packaging likely need updating to accommodate the new shape or fill height.

Conclusion There is no single act that abruptly legalized 700 ml bottles nationwide; rather, metric acceptance in U.S. alcohol regulation and incremental state updates during the late 20th century allowed 700 ml bottles to become a legitimate and increasingly common option. A distillery considering switching from 750 ml to 700 ml can gain advantages in international alignment, potential cost and supply benefits, branding differentiation, and packaging simplicity for export—while needing to manage consumer perception, pricing strategy, regulatory details at the state level, and one-time operational transition costs. For most producers eyeing export growth or seeking supply-chain efficiencies, moving to 700 ml can be a strategically beneficial choice when paired with careful market and cost analysis.