News:

A Declaratory Ruling request submitted to the New York State Liquor Authority by Malkin Law in June of 2019 has been approved in writing by the Authority. The request detailed the specific unlicensed third party marketing practices of an  independent television network through which alcoholic beverage suppliers could promote their products at on-premise accounts.   In particular, the marketing company sought guidance as to whether its proposal to loan their devices to on-premise retailers violates the “Gifts and Services Law” or the regulations promulgated by the Authority with respect to that law.   The Authority found that the media devices were not intended to influence retailers to buy the products of a particular manufacturer or wholesaler due to the exception for interior signs advertising alcoholic beverages, provided that the signs have no secondary value and are of value to the retailer only as advertising, and so long as no manufacturer or wholesaler pays the retailer directly or indirectly in return for displaying the inside sign at the retailer’s licensed premises. Here, the Authority found that there was no violation of the Gifts and Services Law since TrueSync did not propose to pay retailers anything in exchange for the opportunity to place their devices in retail accounts utilizing retailer’s pre-existing television screens and merely proposed to loan the devices to retailers while allowing them to design their own advertisements for use in their own licensed premises.   The full Declaratory Ruling can be read here: https://sla.ny.gov/system/files/documents/2020/06/2019-01977-truesync-media-third-party-media-display-devices_0.pdf    

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…