US Export Plan - Sector Report - Food and Drink

Trade, Policy and regulation considerations

Entering the US market presents significant opportunities for Scottish exporters, but it also involves navigating a complex regulatory landscape. Compliance with federal, state, and sector-specific requirements is essential to avoid costly delays, penalties, or shipment rejections.

Customs and trade compliance is a vital area for exporters to understand. Most of these rules are federal, rather than having a bearing on state level considerations. A first consideration for most exporters will be navigating the dynamic tariff environment that can significantly impact landed costs and competitiveness. Whilst a 10% tariff applies at moment, this may change, for example there are some concerns that a 25% tariff on Single Malt could return in 2026, which underscores the importance of proactive tariff monitoring, accurate HS code classification and strategic pricing to mitigate margin erosion and maintain market access. Key areas of consideration include customs clearance and the recent (August 2025) changes introduced by the removal of the $800 de minimis threshold meaning every shipment, regardless of value, must undergo full customs clearance, including codes, product descriptions and country-of-origin declarations. This can lead to increasing paperwork and costs, particularly for food items that contain a range of ingredients originating from multiple countries. US tariffs vary by category and origin and therefore exporters must monitor changes to avoid unexpected costs. These are also national.

State level variation that can be particularly relevant includes state and local taxes. Though these are not necessarily sector specific, they can particularly impact food and drinks companies who may end up selling small volumes of products in a wide variety of states, creating both tax and compliance costs.

There can also be additional state level requirements such as environmental packaging laws or bottle deposit schemes. The latter is the practice of adding a small deposit on top of the price of a beverage which is repaid when a consumer returns the bottle to the retailer or a recycling centre. Currently this bill applies in 10 states: California, Connecticut, Hawaii, Iowa, Maine, Massachusetts, Michigan, New York, Oregon, and Vermont^[37].

Food and Drink sector requirements

Most food and drink products fall under the jurisdiction of the Food and Drink Administration (FDA), while meat, poultry and processed eggs are regulated by the US Department of Agriculture (USDA). Some of the key considerations for Scottish exporters to the US will include:

• Facility Registration: Mandatory under the Food and Safety Modernization Act (FSMA) for all foreign manufacturers and packers
• Prior notice: Electronic notification to FDA before shipment arrival
• Labelling compliance: This will include product name, ingredient list in descending order by weight, Nutrition facts (not applicable for fresh produce), allergy declaration, responsible party and country of origin.
• Hazard Analysis and Critical Control Point (HACCP): In addition to existing FDA certification, for frozen seafood a HACCP plan is required, which is comparable to the Food Standards Agency requirements.
• Electronic Health Certificate: Export health certificate (EHC) must be applied for through the UK’s Animal and Plant Health Agency (APHA). For certain food products, including dairy products and seafood, the US requires that these EHC’s must be also signed by an APHA Vet^[38].

Alcoholic Beverages

Given the outsized role of alcoholic drinks exports in Scotland’s market share in the US food and drink sector, the rules impacting this subsector are particularly relevant.

The Alcohol and Tabacco Tax and Trade Bureau (TTB) are the governing body for labelling and formula approval for alcoholic products and therefore are a key consideration for Scotch Whisky importers.

Key considerations for alcohol exports include:

• Federal Basic Import Permit & Federal Excise Taxes: Exporting alcoholic beverages into the USA for commercial purposes requires an Importer's Basic Permit with the TTB.
• Certificate of Label Approval (COLA): Every bottle label must comply with US labelling standards and be submitted and approved by the TTB before importation. A certificate of origin must state: 1) the country where the alcohol is produced, and 2) the age of the alcohol as well as the percent of alcohol in the beverage.
• Formula approval: If formula approval is required (which importers will need to determine), the TTB will request documentation such as a full list of ingredients, a description of the manufacturing process, and a Flavor Ingredient Data Sheet for any third-party flavourings.

Control and Open States

For a general metric in determining regulatory favourability for importing alcoholic beverages into the United States, states can be grouped into two main categories: Open States and Control States. There are currently 33 open states across the US (see Figure 1 below). In these states, producers can sell directly to distributors or retailers. Consumers can purchase alcohol from privately owned stores rather than government-operated outlets. For example, in California, alcoholic beverages are available in grocery stores and drugstores. These stores can offer products at varying price points and may apply discounts or promotional pricing.

The remaining 17 states in the US are considered ‘control states’ (see Figure 1 below) where the Government controls at least some aspect of liquor sales. In contrast to open states, control states like Alabama or Idaho require consumers to buy alcohol from state-run Alcoholic Beverage Control (ABC) stores. Additionally, control states typically prohibit promotional tactics such as limited-time offers, discounts, or sales to market liquor products.

A further consideration is that some states also allow local jurisdictions to prohibit alcohol sales through local option laws, resulting in ‘dry counties’. There can be considerable state-by-state variation, for example in Mississippi there are many dry counties with strict laws against alcohol production and transportation, while in Kentucky there are some dry counties but they can choose to remain dry or wet^[39]. In Kansas and Tennessee counties must specifically vote to allow alcohol sales.

Control states: Alabama, Idaho, Iowa, Maine, Michigan, Mississippi, Montana, New Hampshire, North Carolina, Ohio, Oregon, Pennsylvania, Utah, Vermont, Virginia, West Virginia and Wyoming.

Open states: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New Mexico, New York, North Dakota, Oklahoma, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Washington and Wisconsin.

Retailer considerations

• Shelf space charges: Retailers charge for shelf space, often known as slotting fees (or listing fees). This fee varies largely depending on product, manufacturer, and market conditions and relates to the amount a manufacturer pays a retailer to appear on the shelves. Slotting fees typically average around $1,500 per store for each Stock Keeping Unit (SKU), though the amount can vary depending on product placement within the store layout. ^[40]
• Pay-to-stay fees: Pay-to-stay fees are paid by CPGs during category reviews in the form of discounts, additional signage or complementary products to the retailer. Stores also charge substantial fees for seasonal features and promotional end-of-aisle displays. Manufacturers may pay between $350 and $500 per display per store, with costs varying by product type with an example of a higher payment requirement for specialty items.

While increased documentation and compliance checks have raised costs for Scottish food and drink exporters - particularly SMEs - these challenges are not considered completely prohibitive. The scale and attractiveness of the US market far outweigh the administrative burden, making it a compelling destination for growth despite regulatory complexity.

Strategies for addressing these considerations

Exporters can leverage several support mechanisms to ease entry, including Memoranda of Understanding (MoUs) with states such as New York and Florida. Additionally, government-backed initiatives provide practical assistance through market intelligence, tailored trade missions, and introductions to distributors and retailers. Programmes such as the Scottish Government’s GlobalScot network and UK Export Finance offer advisory and financial support, while in-market accelerators and trade shows (e.g. Fancy Food Show, Expo East) create opportunities for brand visibility and partnerships. These frameworks, combined with Scotland’s reputation for premium quality and provenance, help mitigate barriers and position Scottish food and drink businesses for success in the US market.