Jack Daniel's owner Brown-Forman (BF.A) argues that only when the spirit is made from at least 51% corn, filtered through maple charcoal and aged in new, charred oak barrels. The state agreed and passed legislation to that effect last year.
However, Diageo, the provider of George Dickel, is trying to persuade Tennessee legislators to relax the rules so that distillers in the region can innovate and not copy Jack Daniel's. This is despite George Dickel complying with the regulations.
State House and Senate committees are due to discuss the issue today ahead possible votes in the full chambers to ease the regulations.
Brewers and spirits sellers are on the move today along with most global markets.
What to watch: The sector has been shifting more of its focus to emerging markets with North American and Europe seeing sluggish growth trends. In particular, aggressive moves from new brands are being made in Latin America and India.