It has been reported that the Alcohol and Tobacco Tax and Trade Bureau (TTB) has now approved Palcohol, a powdered form of alcohol, despite several states proposing bans on the sale of the product. Palcohol is a freeze-dried form of alcohol that is flavored and packaged in small, portable pouches; the powder is mixed with liquid for the equivalent of an alcoholic beverage.

Colorado, Iowa, Ohio, Rhode Island, and Utah are trying to stop the sale of the product and Alaska, Delaware, Louisiana, New York, South Carolina, and Vermont have banned the sale of any powdered or crystalline alcohol product. Many are concerned that Palcohol has a significant potential for abuse (particularly for minors for whom the flavors may be appealing) and inadvertent misuse due to unfamiliarity with the potency.

Palcohol was briefly approved by the TTB last year until the Bureau retracted the label approval, claiming that the label approval was in error. The founder of Palcohol has stated that the company hopes to launch the product this summer, but additional state bans could significantly limit the availability of the product.

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