During the COVID lockdowns, many New York businesses suffered from forced closures. Small craft makers of mead, spirits, and cider were just one industry facing significant financial hardship and maybe even permanent loss of their businesses.
Temporary laws were put into place allowing craft makers of spirits, cider, and mead to ship directly to their customers to keep them afloat and able to sell their product during the pandemic. This new law makes what was temporary relief during COVID-19 permanent.
Governor Kathy Hochul signed legislation (S.2852A/A.3132A) that allows New York’s small craft manufacturers of spirits, cider, and mead to ship directly to consumers in and out of New York.
Hochul said, “This legislation levels the playing field, allowing these small producers to reach new markets and foster economic growth across the state.”
Wineries have been able to direct ship for over 20 years, but these other craft makers were not allowed to do the same. This new law that takes effect in 90 days essentially ‘catches up’ the industry to put other makers on a level playing field with wineries.
Some expressed concern about being able to skirt ID requirements, but the State Liquor Authority reported that there were no recorded violations when the temporary shipping privileges were in place during the COVID-19 pandemic. Additionally, there are strict rules about delivery of alcohol both in the amount allowed per year per person and for signature verification upon delivery.
The United States Post Office cannot be used and most makers use UPS. The delivery service must get a signature upon delivery and a photo ID showing you are the person on the order and are also over 21 years of age. The delivery service must deny delivery to anyone who refuses to show ID. Extensive record keeping of deliveries is also required.
“This legislation will hopefully support the long-term survival and create another growth spurt of New York’s vibrant craft and farm alcohol producers,” said Lily Fan, NYS Liquor Authority chair. “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.
New York’s craft cider and spirit producers often struggled to gain access to traditional wholesale distribution channels, placing these smaller manufacturers at a competitive disadvantage, as their products are less likely to reach licensed retailers and consumers. Just like with regional wineries, direct-to-consumer shipping offers an essential new outlet for these smaller producers. For consumers, the new law means greater access to high-quality New York-made products, driving demand for the state's craft beverages both locally and nationally.
This expansion of market access is particularly significant as New York is home to the largest number of craft cideries in the nation and ranks second in the U.S. for the number of distilleries.
New York Farm Bureau President David Fisher said, “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. 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.”