(1) A manufacturer may not distribute or sell a malted beverage:
(a) unless the label and packaging of the malted beverage:
(i) complies with the federal label requirements of 27 C.F.R. Parts 7, 13, and 16; and
(ii) clearly gives notice to the public that the malted beverage is an alcoholic product; and
(b) until the day on which the department in accordance with this title and rules of the commission approves the label and packaging of the malted beverage.
(2) The department shall review the label and packaging of a malted beverage to ensure that the label and packaging meet the requirements of Subsection (1)(a).
(3) Except as otherwise required under Section 32B-1-606, a manufacturer may comply with the requirement of Subsection (1)(a)(ii) by including on a label and packaging for a malted beverage any of the following terms in obvious and clearly visible contrast to the background of the text:
(a) beer;
(b) ale;
(c) porter;
(d) stout;
(e) lager;
(f) lager beer;
(g) hard seltzer;
(h) spiked seltzer; or
(i) another class or type designation commonly applied to a malted beverage that conveys by a recognized term that the product contains alcohol.