Four Loko to Introduce First Re-Sealable Alcoholic Beverage Can, Enhance Labeling

"The resealable can will be easy to use, spill-proof, retains carbonation and gives consumers more flexibility in the way they choose to enjoy our Four Loko products," said Freeman.

Oct 7 2011 --- Phusion Projects, LLC, the makers of Four Loko, has reached agreement with the U.S. Federal Trade Commission ("FTC") regarding the packaging of its flavored malt beverages, such as Four Loko in 23.5-ounce cans. The consent order, which was approved for public comment today by the FTC, resolves allegations made by the Commission regarding some of Phusion's marketing practices.

"Even though we reached an agreement, we don't share the FTC's perspective and we disagree with their allegations. We don't believe there were any violations. However, we take legal compliance very seriously and we share the FTC's interest in making sure consumers get all the information and tools they need to make smart, informed decisions," said Jaisen Freeman, one of the co-founders of Phusion Projects. "That's why the measures we agreed upon made sense to us and why we worked with the Commission to develop and implement them."

Under the agreement, Phusion will develop a new, resealable can for its flavored malt beverage products that contain at least the equivalent of approximately 2.5 regular beers (12-ounce, 5 percent alcohol-by-volume ("ABV"), which includes Phusion's current 23.5-ounce, 12 percent ABV Four Loko products. The new can closure technology, the first for any alcoholic beverage worldwide, is expected to be available in stores by late next spring.

"The resealable can will be easy to use, spill-proof, retains carbonation and gives consumers more flexibility in the way they choose to enjoy our Four Loko products," said Freeman.

Also, to add further transparency and information to its flavored malt beverage products, such as Four Loko, the cans will have additional label information that compares the contents of a can of Four Loko to 12-ounce, 5 percent ABV beers. The additional label information will affect only Four Loko in 23.5-ounce cans with 12 percent ABV.

"Our can labels have always clearly conveyed exactly what's in them in bold, capital letters," Freeman said. "This new, additional label will give consumers even more information."

"By taking this action, we are again demonstrating leadership, cooperation and responsible corporate citizenship," said Freeman. The labeling of Phusion products already goes well beyond industry standards, Freeman noted, with six different statements in ten locations regarding the alcohol content and the need for an ID for purchase. In addition, last fall, Phusion was the first company to voluntarily remove caffeine from its products.

"These new steps are consistent with who we are as a company," Freeman added. "From day one, Phusion Projects has been committed to being an industry leader, not just in sales, but also in transparency and corporate responsibility. These actions demonstrate that commitment."

The agreement, which includes no admission of wrongdoing, is subject to a 30-day comment period before it can receive final approval and become effective.