On November 13, 2014, New York Governor Andrew Cuomo signed the Craft Beverage Act amending certain provisions of the New York Alcohol Beverage Control Law regarding manufacturing licenses pertinent to craft and micro-producers. The new statute is intended to harmonize the various laws that have been promulgated over the years for craft breweries, wineries, and cider manufacturers ("cideries"), while also bringing the relatively new market entrants – farm distilleries – into the mix. The new craft beverage law, which goes into effect in mid-December of 2014, will address the following:
- Allow each licensed manufacturer to conduct tastings and sell for on and off-premises consumption the alcohol beverages it produces (along with any New York State labeled version of the same) at its licensed premises, without the need for any separate license or permit. Finger food will have to be available in conjunction with such sales.
- Allow each farm distiller to operate one "branch office" in addition to the principal licensed premises (farm wineries, farm breweries and farm cideries currently can operate branch offices where the licensee can conduct any activity that is permitted at the licensed manufacturing premises).
- Change/ease the requirement for the on-premises license that a manufacturer can get from Section 64 of the NY-ABCL (the "restaurant" food requirement) to section 64-a (the "tavern" food requirement). Every wine and beer manufacturer will be eligible, along with farm distillers and farm cideries.
- Increase the production caps (without an increase in the license fee) for the "farm" and "micro" manufacturers as follows: farm wineries and farm cideries from 150,000 gallons to 250,000; farm brewers and micro-brewers from 60,000 barrels to 75,000 barrels; farm distillers and micro-distillers from 35,000 gallons to 75,000 gallons.
- Imposes minimum production requirements for licensed manufacturers: 50 gallons for any of the liquor, wine or cider manufacturers; and 50 barrels for any of the beer manufacturers.
The new legislation is codified as Chapter 431 of the Laws of New York of 2014, or Assembly bill A 10122, or Senate bill S 7813-A. The text of the new law, as well as a summary of its legislative history, can be found online at: http://open.nysenate.gov/legislation/bill/A10122-2013
If you have any questions about New York’s new Craft Beverage Law, please contact GrayRobinson’s Alcohol Industry Team via telephone at (866) 382-5132 or via e-mail at beveragelaw@gray-robinson.com