Feds Reverse Approval Of Powdered Alcohol

MIAMI (CBSMiami) -- A new powdered alcohol product has hit a hiccup in getting to market.

The federal agency that originally approved "Palcohol" has reversed its position.

A spokesman for the U.S. Alcohol and Tobacco Tax and Trade Bureau said it approved Palcohol's powdered vodka, rum, and other cocktails -- quote -- "in error." The spokesman did not give further explanation.

Tempe, Arizona-based Lipsmark L-C-C makes Palcohol.

It's designed to be added to water to create an instant cocktail, or you can supposedly sprinkle it on your food.

According to the company, one package of the powder can make a standard mixed drink when five ounces of liquid are added. Palcohol comes in six flavors, including vodka, rum, cosmopolitan, mojito, lemon drop, and a version of a margarita.

Palcohol has plenty of critics including addiction counselor Vera Martz.

"Alcohol is the worst drug there is," according to Martz who is nine years sober and now helps others battle their alcohol and drug addictions.

She believes Palcohol is a disaster waiting to happen. "Oh I can't believe anybody would even think about letting this come on the market, I mean that's about as stupid as it gets."

The creator of the product, Mark Phillips, and his product website stress that Palcohol should not be abused and when it's available, people should always use it responsibly and legally.

The company said that it will resubmit the product for approval.

If the product is ultimately approved at the federal level, it will still be subject to state regulations and available only to anyone over the age of 21.

Palcohol hopes to become the first powdered booze in the United States, but it is not a new concept.

Similar products are on the market in other countries, including Japan and the Netherlands.