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New York’s Gov. Cuomo Continues To Support New York’s Alcohol Industry

by | Oct 15, 2015 | alcohol beverage law, Craft Spirits, New York

New York’s Governor Cuomo today recently held the third Beer, Wine, Spirits and Cider Summit in New York. A video is available here. The result of both the summit and industry feedback, Cuomo announced that the State Liquor Authority (“SLA”) approved a number of advisories that will “help support the continued growth and development of New York’s beverage manufacturers, retailers and wholesalers.”

Cuomo said, “this industry is a New York success story, creating jobs and economic activity, as well as some of the best beer, wine, spirits and cider in the world…By enacting these reforms, we are furthering this administration’s successful efforts to cut red tape, ease regulations, and make commonsense reforms to help these businesses further grow and thrive in every corner of New York.”

SLA advisories will provide for the following privileges as quoted from the Governor’s release:

  • Allow salespeople to represent multiple craft beverage manufacturers. This will increase distribution for small craft producers and provide more opportunities for salespeople to join the growing beverage industry.
    • And according to the Advisory, the language of subdivision 2 of section 93 does not impose a restriction on the number of licensees that a solicitor represents, but only requires that the name of any such licensee appear on the permit certificate. Accordingly, an individual holding a solicitor’s permit may represent more than one licensed craft (“micro” or “farm”) manufacturer, provided that all the manufacturers consent to the individual’s representation of multiple licensees.
  • Allow multiple craft manufacturer branch offices at the same location. This change allows a group of manufacturers to share a location, lowering operating costs and providing more retail outlets for craft products.
  • Provide guidance for contract brewing. Today’s advisory explicitly authorizes contract brewing, allowing small breweries to use the facilities of a larger producer to manufacturer beer. This policy will benefit both large and small manufacturers, providing additional revenue for established brewers while assisting small brewers entering the market.
  • Update the marketing permits. Brewers may now purchase beer used in tastings at a retail location from the retailer, increasing the number of tastings conducted and saving manufacturers transportation costs.
  • Authorize home wine making centers. The SLA will issue permits for wineries and farm wineries to operate as “home wine-making” centers, where customers can receive expert advice and utilize the winery’s equipment to produce wine for personal consumption.
  • Authorize tastings at wine schools and other alcoholic beverage education classes and seminars. The SLA will issue permits for bonafide schools to conduct tastings as part of their curriculum, introducing consumers to new craft products and supporting research.
  • Create a craft beverage tasting permit for non-profits. The SLA Board authorized permits for not-for-profits to charge admission at events where manufacturers and wholesalers offer samples and sales of alcoholic beverages.
  • Allow off-premises beer retailers to fill orders for growlers at a warehouse, rather than having to conduct the activity at their licensed premises.
  • Lower fees for seasonal additional bars. Restaurant, bar and tavern owners are allowed to operate one bar in the premises with the license, with additional bars costing the equivalent of the original license. Today the SLA Board authorized the issuance of pro-rated fee for “add bars” so retailers operating a bar on a seasonal basis, for instance on an outdoor patio or deck, are charged a fee based on the months the bar will be in operation.
  • Clarify the ability of out-of-state brew pub owners to operate a restaurant in New York. This change will allow these companies to expand their business in this state, and licensees in this state to consider opportunities in other states.
  • Clarify rules for conducting raffles and games of chance conducted by retailers. New guidance will allow not-for-profit organizations to conduct fundraising activities in a retail establishment provided the activities are in accordance with state laws and regulations.
  • Provide assistance for nonprofit club licensees. The SLA today provided guidance for club licensees regarding their ability to serve non-members.

For more information about each specific Advisory, visit the SLA website.

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The foregoing was prepared as general information. It is not meant to provide legal advice granting any specific matter and should not be acted upon without professional counsel. If you have questions or require additional information regarding these or other related matters, please contact Malkin Law, P.A. This material may be considered attorney advertising under certain rules of professional conduct.