As a distillery owner I was happy to see that this wasn't another takedown of craft distillers by the sanitizer industry. Very good to see zero US distilleries in their report.
I wasn't aware of any issues with distillery produced hand sanitizer, real or scare tactic. There was an earlier issue with methanol in hand sanitizer, but I would have figured distilleries wouldn't have trouble with that since they already have to deal heavily with preventing methanol getting in the final product and it's a well understood thing
There was a kerfuflle some months back when the FDA was going around slapping huge fines on craft distilleries who were making hand sanitizer. Don't recall the specifics, it was either something about exceeding allowed production quotas for ethanol, or taxes, maybe both. I believe that sanity prevailed and the fines were not imposed.
there are some flat licensing fees for each production facility the FDA oversees, and since you're producing hand sanitizer, well... no good deed left unpunished.