Rev. Rul. 56-207

Revenue Ruling 54-324, C.B. 1954-2, 586, provides that a product classed as `flavored vodka' may not contain sugar in excess of 2 1/2 percent and that such product containing excessive sugar must be designated as a liqueur. Since `flavored brandies,' `flavored gins,' and `flavored rums' normally contain sugar in excess of 2 1/2 percent and since the consuming public has become aware that such products are sweet drinks, a 2 1/2 percent restriction placed on the amount of sugar which may be contained in flavored vodka is contrary to the consumer conception of such liquors. Accordingly, it is held that a product may be designated as `flavored vodka' even though its sugar content exceeds 2 1/2 percent. As is the case with flavored brandies, gins and rums, the product may not be bottled at less than 70 degrees of proof.

Revenue Ruling 54-324, supra , is hereby revoked.