That said you should be able to use it to bottle with no issues, and I've used cane sugar in apfelwein with no problems. It's important to note however that it isn't the same ingredient, I wouldn't interchange them in a recipe without considering that.
Rather than using powdered sugar, you can use regular table sugar. It's chemically identical (sucrose), doesn't contain additives, and a lot cheaper. 0.8 lbs sucrose is equivalent to 1 lb corn sugar (dextrose), so you don't need as much.