A key alcohol labelling bill has won the bipartisan approval of the California State Senate Governmental Organization Committee.

The bill, AB 346 by California Assembly members James Beall and Lori Saldana, would require that all beers or other malt beverages clearly state that they contain alcohol and reveal the alcohol content on the label if there is any chance the container could be confused with a non-alcoholic product.

The bill, which has had the support of Diageo, the world's largest wine and spirits producer, now goes to the Senate Appropriations Committee.

"Diageo markets all of its alcohol products as alcohol products and has no interest in defending marketing practices that obscure the presence of alcohol," said Amy Elliott, senior director state government affairs, Diageo North America. "Diageo is proud to support this important and well intentioned legislation that will assist in making clear that beer products contain alcohol."