Sorry, Powdered Alcohol Not Approved After All Bureau says approval was issued in error By Evann Gastaldo, Newser Staff Posted Apr 21, 2014 7:17 PM CDT 24 comments Comments Stock image (Shutterstock) (Newser) – If you were excited about the possibility of "powdered alcohol" coming to a liquor store near you, we have bad news: It won't be, at least not in the near future. A spokesperson for the Alcohol and Tobacco Tax and Trade Bureau tells the AP the federal bureau issued the "label approval" for the product, called "Palcohol," in error. And Palcohol confirms that it agreed today to surrender the approvals, though its parent company, Lipsmark, says it will resubmit the labels for approval. It's not clear how the error occurred or what the problem is; Lipsmark says that "there seemed to be a discrepancy on our fill level, how much powder is in the bag." But one beverage law expert notes that Palcohol would have to have gone through a long process before getting to the label approval stage, and he says, "An oversight of this nature does not ring true to me." It's possible lawmakers responded to the publicity swirling around the product and asked for more information, he suggests.