A bartender once explained to me that there were legal standards as to what was allowed to be called beer, wine, etc., based on alcohol content. Hence the malt liquors and other fine lines. The problem is most people don't understand those differences as it all tastes / looks like beer to them. The marketing folks are also partially to blame here as they will happily blurr those lines when it is to there benefit. So I suppose I come down on the side of sell it, just be sure it is labeled distinctly and marketed correctly. Mn. must be one of the states requiring the distinctions.
You also have the tax aspects that really have the regulators wound up, if the truth were told. All these little bar size brewers must give them fits keeping track of how much alcohol they are producing and paying tax on.