News:

Below is a portion of the press release from the New York State Liquor Authority. For the full release and a Q&A, click here.   Pursuant to the Governor’s order, effective Monday, March 16, 2020 at 8:00PM, all licensed on-premises establishments (e.g. restaurants, bars, taverns, clubs, arenas, catering establishments, etc.) must cease on-premises sales of alcoholic beverages and/or food.  Additionally, all licensed manufacturers with on-premises privileges must also cease on-premises sales of alcoholic beverages and/or food; however, a licensed manufacturer may continue all manufacturing operations.  This restriction shall continue until April 15, 2020 but may be extended or reduced depending upon the circumstances. To aid in prevention of the spread of the coronavirus and assist businesses impacted by the current state of emergency, the Governor has ordered the State Liquor Authority (SLA) to promulgate guidance on new off-premises privileges for licensed businesses with on-premises privileges. The State Liquor Authority offers the following guidance: Any on-premises licensee and any manufacturing licensee with on-premises retail privileges may sell for off-premises consumption any alcoholic beverages that it is able to sell for on premises consumption under the law. For example, a tavern wine licensee may sell beer, wine, cider, mead, and wine product, but not liquor, and a farm winery may sell any New York State labeled wine, beer, cider, mead, or liquor, but not non-New York State products unless it has an on-premises license as well. Alcoholic beverage sold for off-premises consumption pursuant to this guidance may be sold in any closed…

Last month the New York State Liquor Authority (“NYSLA”) took under review the issue of “Bill and Hold” invoicing and storage between wholesalers and retailers. The practice of Bill and Hold is when a licensed wholesaler sells product to a licensed retailer without the product being delivered to the retailer’s premises at the time of sale and instead can be stored at the wholesaler’s licensed premise or warehouse on behalf of the retailer.   In order for a wholesaler and retailer to permissibly facilitate a Bill and Hold sale, it must follow the rules outlined under Advisory 2017-1. The advisory goes into detail to explain all the necessary requirements, which include but are not limited to:  All retailers must be offered the Bill and Hold method of sale and not just specific retailers by the choice of the wholesaler. The wholesaler is also under no requirement to offer a Bill and Hold sales option. The wholesaler is not required to offer all of its products for sale under Bill and Hold.  Sales must be invoiced as of the date the retailer places the order and such date shall be considered the date of delivery for determining the final payment date for sales made on credit.  All products purchased through this sale must be stored at the wholesaler’s licensed premises or permitted warehouse.  The wholesaler must charge a market rate for storage even if it’s just for a single day. Market rate is determined by calculating an average…

The New York State Liquor Authority (SLA) fined two liquor stores $20,000 each for cooperative buying. The stores are owned by a husband and wife, each owning one store.  New York rules prohibit joining together to purchase products at a reduced, volume discounted price. A clip from the hearing is available here and worth watching: SLA Co-Op Clip As you will see from the video, many members of the SLA wanted to cancel both licenses. However, it was noted that the couple fully cooperated with the SLA and this was their first infraction. In the end, the SLA balanced its desire to send a strong message with the desire to encourage cooperation and settled on a $20,000 fine per store.