diff --git a/pungi/metadata.py b/pungi/metadata.py
index b853e1f4..bffe1255 100644
--- a/pungi/metadata.py
+++ b/pungi/metadata.py
@@ -94,7 +94,8 @@ def compose_to_composeinfo(compose):
             return None
 
         # variant details
-        var.id = variant.id
+        # remove dashes from variant ID, rely on productmd verification
+        var.id = variant.id.replace("-", "")
         var.uid = variant.uid
         var.name = variant.name
         var.type = variant.type
@@ -230,7 +231,8 @@ def write_tree_info(compose, arch, variant, timestamp=None):
         var.name = variant.parent.name
         var.type = "variant"
     else:
-        var.id = variant.id
+        # remove dashes from variant ID, rely on productmd verification
+        var.id = variant.id.replace("-", "")
         var.uid = variant.uid
         var.name = variant.name
         var.type = variant.type
diff --git a/pungi/wrappers/variants.py b/pungi/wrappers/variants.py
index 38edabaf..1c3949d3 100755
--- a/pungi/wrappers/variants.py
+++ b/pungi/wrappers/variants.py
@@ -198,8 +198,6 @@ class VariantsXmlParser(object):
 class Variant(object):
     def __init__(self, id, name, type, arches, groups, environments=None,
                  buildinstallpackages=None, is_empty=False, parent=None):
-        if not id.isalnum():
-            raise ValueError("Variant ID must contain only alphanumeric characters: %s" % id)
 
         environments = environments or []
         buildinstallpackages = buildinstallpackages or []
diff --git a/tests/data/dummy-variants.xml b/tests/data/dummy-variants.xml
index 23591d77..e43446fc 100644
--- a/tests/data/dummy-variants.xml
+++ b/tests/data/dummy-variants.xml
@@ -73,4 +73,29 @@
     </variants>
   </variant>
 
+  <!-- layered products - Tools for Foo and Bar variants from a base product -->
+  <variant id="Foo-Tools" name="Tools" type="variant" has_optional="false">
+    <arches>
+      <arch>x86_64</arch>
+    </arches>
+    <groups>
+      <group default="true" uservisible="true">core</group>
+    </groups>
+    <environments>
+      <environment>minimal</environment>
+    </environments>
+  </variant>
+
+  <variant id="Bar-Tools" name="Tools" type="variant" has_optional="false">
+    <arches>
+      <arch>x86_64</arch>
+    </arches>
+    <groups>
+      <group default="true" uservisible="true">core</group>
+    </groups>
+    <environments>
+      <environment>minimal</environment>
+    </environments>
+  </variant>
+
 </variants>