Hochul signs craft brewery DTC bill

ALBANY, NY (WUTR/WFXV/WPNY) — During the COVID-19 pandemic in 2020, smaller breweries and other spirit manufacturers in New York State were able to ship their product directly to the customer.

After a bill signed by Governor Kathy Hochul on Monday, August 19, that change has now become permanent.

According to the governor’s office, the bill will open new opportunities for the growing craft brewery industry in New York State. It will also allow these producers to ship their products directly to consumers, in New York State and beyond.

“New York’s craft manufacturers create distinctive, world-class products that deserve a broader audience,” Governor Hochul said in a statement. “This legislation levels the playing field, allowing these small producers to reach new markets and foster economic growth across the state. With this new law, we are ensuring that New York remains a national leader in craft beverages, continuing to support our local businesses, tourism, and agriculture.”

According to the governor’s office, New York State is home to the largest number of craft cideries in the nation. The state also ranks second in the number of distilleries. Both have advocated for a long time to share the same privileges that wine manufacturers have enjoyed for almost 20 years.

The bill will also provide safeguards to prevent underage access, as well as make sure the proper taxes are collected by mirroring current DTC wine shipping laws.

“This legislation provides our distilleries and cideries with tremendous opportunity for growth that will have a ripple effect on our economy,” State Agriculture Commissioner Richard Ball said in a statement. “With the most cideries and the second-most distilleries in the nation, New York State is committed to continuing to support these small businesses, who ultimately also help provide a boost to our farmers as well. By opening up the direct-to-consumer shipping option, producers can reach even more customers and consumers have an opportunity to discover a new, favorite New York beverage.”

During the pandemic, New York craft breweries and cideries were granted temporary privileges to ship their product directly to the customer. This was done to help them survive the accompanying economic turndown and proved successful, with no recorded violations. The new law will permanently codify the privilege, and allow manufacturers to reach customers within New York State and across the United States.

“This legislation will hopefully support the long-term survival and create another growth spurt of New York’s vibrant craft and farm alcohol producers,” New York State Liquor Authority Chief Lily Fan said in a statement. “I am immensely proud that our agency is able to support our manufacturing licensees in obtaining this long-sought change, which would allow them to directly touch their consumers and build brand loyalty in a meaningful manner. I am grateful for Governor Kathy Hochul and her team’s leadership on this issue. I truly embrace and celebrate the partnership with our bill sponsors and committee chairs:  Senator Skoufis, Assemblymember Lupardo, and Assemblymember Stirpe. I look forward to continuing to bring efficiency to our industry and affordability to all consumers while ensuring public safety.”

“We are excited for our farm distillers and farm cideries who will now be able to expand their market by shipping their products directly to consumers,” New York Farm Bureau President David Fisher said in a statement. “This is a lifeline for many struggling distilleries and cideries throughout the state. This will help strengthen the fruit, grain and potato industry in New York and is a huge win for agriculture.”

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