Chandler-based AZ Bitters Lab, the state’s first research and production lab for handcrafted cocktail bitters and flavor extracts, has stopped production after eight years.
The company’s popular bitters included cirtusy Orange Sunshine, spiced Figgy Pudding, and chocolatey Mas Mole. They are widely found at restaurants and bars throughout Arizona and sold nationwide and even overseas.
Owners Bill and Lillian Buitenhuys say the decision to halt production is the result of a recent ruling by the Department of Liquor Licensing and Control (DLLC), in conjunction with the state Attorney General’s office.
In 2013, the DLLC ruled cocktails bitters were exempt from liquor licensing because they were classified as ‘‘non-beverage alcohol/flavor extracts,’’ similar to vanilla extract.
Recently, however, that decision has been reversed. If AZ Bitters Lab wants to continue, it would need to fulfill the stringent requirements for becoming a spirits producer, including launching a production facility approved as a distillery.
In addition, labeling bitters as a spirituous liquor significantly affects how the product can be marketed, sold, and shipped.
According to the couple, the DLLC has yet to answer their questions about how Arizona now will regulate bitters.
‘‘We never envisioned being in the spirits business and therefore stopped production with no viable path to continue at this time,’’ the couple said in a statement.
