Senator Fahy Introduces Legislation to Allow Sale of Private-Label Liquor at Restaurants

ALBANY, NY – Senator Patricia Fahy (D—Albany) announced today alongside Assemblymember John McDonald and local business owners that she is introducing legislation (S.3075 Fahy/A.XXXX) to amend the state’s Alcoholic Beverage Control Law to permit on-premises liquor license holders, such as bars and restaurants, to sell bottles of New York-produced private-label liquor for off-premises consumption. 

“New York’s and the Capital Region’s craft beverage industry continues to grow at exponential rates and this legislation bolsters that industry while providing new revenue opportunities for restaurants and bars,” said bill sponsor Senator Patricia Fahy (D—Albany). “By allowing businesses to sell private-label liquor sourced from licensed, in-state distillers, we’re not only supporting local production and family-owned restaurants but also strengthening consumer access to unique, high-quality New York products. I’m looking forward to working with my legislative colleagues to move this legislation and support New York’s restauranteurs, family-owned restaurants, and craft beverage producers.”

Under the bill, private-label liquor sold for off-premises consumption must be:

• Distilled within New York by a licensed distiller.
• Clearly labeled to indicate production by a licensed distiller.
• Limited to an annual sales cap of 75,000 gallons per year per license holder.

Additionally, businesses selling private-label liquor must report their total annual sales volume to the New York State Liquor Authority (SLA). This legislation ensures transparency and regulatory compliance while fostering responsible growth in these industries.

The craft beverage industry has grown in New York’s Capital Region along with the rest of New York State, of which the estimated annual economic impact is an astounding $5.4 billion, supporting thousands of good-paying jobs. In the Capital Region alone, the number of craft beverage producers grew by more than 47.7% in just two years from 2020-2021, for example. There are now more than 500 craft breweries, distilleries, meaderies, and more in New York State, the second-highest number in the country.

“I am pleased to support the private label liquor law put forth by Senator Fahy as it truly captures two key elements of success in a community - small business and keeping things local,” said Assemblymember John T. McDonald III, RPh. “Our small businesses are a large part of our history and local lore and I believe efforts such as enabling our small businesses to create private label liquor adds to expanding the reach of the small businesses and boosting community pride.”

“The craft beverage industry is a pivotal part of our local and state economies,” said Assemblymember Gabriella Romero. “New York is one of the top five producers of craft beverages in the U.S. Making it easier for our businesses to use products from licensed, in-state distillers is a win for everyone – this bill supports local producers and small businesses while letting New Yorkers taste what our craft beverage industry is brewing.” 

"The challenges facing small businesses are greater than the opportunities available to grow," said Tipsy Moose co-owner Rob Tario. "When I started producing Tipsy Moose-branded, flavored whiskey, the intention was to expand our brand and introduce a line of high-quality, locally distilled spirits that patrons could not only enjoy at our establishments, but also at home, with friends and loved ones. I am so grateful to Senator Fahy for her support and I hope that this legislation creates a pathway of possibilities for others in our industry."

“Senator Fahy’s proposed bill seeks to further the connection between the hospitality and beverage industries in New York State while simultaneously promoting economic growth for small businesses,” said Brian Grimsley, Sales Director of Albany Distilling Company. “As a New York beverage producer, the relationship we have with our customers can often be transactional, but the proposed legislation expands our opportunity to collaborate with our bar and restaurant customers to bring innovative products to life. Local restaurateurs work tirelessly to provide their guests with hospitality and an experience, and we would consider it a privilege to partner with them in creating a product unique to their establishment that their patrons can bring home and enjoy.

“I applaud Senator Fahy for once again introducing regulatory reforms that ensure the safety and protection of consumers while eliminating unnecessary restraints on our private sector economy,” said Councilmember Meghan Keegan, Albany 9th Ward. “As we face uncertain times, this legislation will help to bolster New York’s growing agricultural economy and provide new revenue streams for our restaurant industry. This is a win for New York’s consumers, our small businesses, and our craft beverage industry.”

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