O'Mara, Palmesano applaud new law to strengthen craft beverage industry locally, statewide

Albany, N.Y., November 20--Legislation to further strengthen New York State's burgeoning craft beverage industry by eliminating burdensome regulations on producers, easing marketing restrictions and other actions has been signed into law by Governor Andrew Cuomo.

The new law was co-sponsored by Senator Tom O'Mara (R,C,I-Big Flats) and Assemblyman Phil Palmesano (R,C,I-Corning).

“It’s a continued strong statement in support of agriculture, business and tourism throughout the Southern Tier and Finger Lakes regions, and statewide,” said O’Mara, a member of the Senate Agriculture Committee.  “I strongly support this bipartisan effort to recognize a vibrant industry and take steps to help it grow, create jobs and strengthen other key industries.  The craft beverage industry offers unlimited economic spin-off opportunities.”

Palmesano said, "It has become clear in the past few years that New York is a national leader in the craft beer, cider, wine and spirits market. This has been especially true of the wineries and farms that encompass the Finger Lakes region. In this new and emerging market, it was imperative to clear red tape and regulations so as to allow it to reach its fullest potential. We applaud the governor for signing this important economic benefit for our local breweries, distilleries, wineries and farms.”

The Craft New York Act takes effect in 30 days. It will provide New York manufacturers with enhanced marketing opportunities, including:

> allowing producers to conduct tastings and serve “by the bottle” and “by the glass”;

> permitting farm distilleries to increase the retail outlets where they can sell and offer samples of their products;

> lowering the food requirement that must be met by manufacturers when offering tastings and consumption on premises; 

> allowing farm distilleries to obtain a permit to operate a branch office, eliminating the need for a separate license; and 

> reducing costs for small manufacturers by increasing the production cap and permitting the production of more product without increased fees.

Since 2011, approximately 220 new farm-based businesses have opened across New York, including 101 new farm wineries, 62 farm breweries, 49 farm distilleries, and 8 farm cideries.  The number of farm-based businesses manufacturing wine, beer, spirits and cider using ingredients grown in New York and the total number of manufacturers producing alcoholic beverages have more than doubled over the past four years.

Visit the Finger Lakes Beer Trail online for more information and updates on local events.

The governor has also announced the establishment of the following new craft beverage grant programs:

> a Craft Beverage Marketing and Promotion Grant Program that will provide matching funds for the marketing and promotion of craft beverages; and

> a Craft Beverage Industry Tourism Promotion Grant which will help grow tourism across New York State by promoting destinations, attractions, and special events explicitly related to the craft beverage industry.

Eligible organizations can apply for both the Craft Beverage Grant Program and the Craft Beverage Industry Tourism Promotion Grant by submitting a Consolidated Funding Application.  Additional program information and guidelines can be found HERE. For more information, please contact Sam Filler at nysbevbiz@esd.ny.gov or (518) 227-1535.

"New York produces some of the best wine, beer, spirits and cider in the world—an industry which not only creates jobs but supports farmers and brings in tourism dollars across every corner of the state," Cuomo said. "This new law builds upon this administration’s ongoing efforts to promote this industry by cutting red tape, reducing burdensome regulations and removing artificial barriers that stifled growth. New York is truly open for business, and I thank my partners in the legislature for their hard work in making this a success for all of our craft beverage businesses."

Jim Trezise, President, New York Wine & Grape Foundation said, “The business climate for the New York wine industry has never been nearly as good as it is today, thanks to Governor Cuomo’s vision, commitment and leadership. Just like we need a good climate to grow good grapes, we need a good business climate to grow this industry. We are also glad that his support extends to our colleagues in the craft beer, spirits and cider sectors as well. The Craft New York Act has many benefits from production efficiencies to new marketing opportunities, and the Craft Beverage Grant programs will create increased awareness, trial, and sales of our products. This is a totally new era.”

State Liquor Authority Chairman Dennis Rosen said, “By working collaboratively with the industry, this administration has enacted significant legislation and created a regulatory framework that has helped to foster the remarkable growth in craft beverage producers over the last four years. The changes signed into law today will further assist in these efforts, by increasing both marketing and sales opportunities, in addition to raising the amount of product our small craft manufacturers can produce.”

State Agriculture Commissioner Richard A. Ball said, “This new law signed by Governor Cuomo, coupled with new promotional funding, will help bring an already world class farm-based beverage industry to new heights. The growth of this industry is truly unprecedented and it’s still showing no signs of slowing down. The opportunities for New York agriculture that have been created during this boom continue to expand every year, in turn providing jobs in local economies and fueling economic growth throughout the state.”

Read more here.