How Tax Policy Gave Us White Claw

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How Tax Policy Gave Us White Claw
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Because White Claw is brewed like beer, it’s taxed like beer. jbarro explains why that matters

He’ll feel okay about this tomorrow. Photo: Konstantin Sergeyev I’m kind of amazed the White Claw craze didn’t happen sooner.

Because White Claw is brewed like beer, it’s taxed like beer, which is important because beer is taxed in the U.S. at a much lower rate than spirits. If you made a product similar to White Claw by mixing vodka with seltzer and putting it in a can, a six-pack would be subject to more than $2 in additional taxes when sold in New York City.

There’s another way White Claw isn’t quite like a vodka soda: It contains 5 percent alcohol by volume, similar to many beers. Most vodkas are 40 percent alcohol by volume, so to make an equally strong vodka soda, you’d need to mix one part vodka with seven parts of seltzer. Most people pour with a heavier hand than that, whether at home or at a bar. So if you think White Claw tastes very different from a vodka soda, that might just be because it’s weaker.

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