Hochul signs legislation allowing direct-to-consumer shipping for NYS spirits & cider

Legislation S.2852A/A.3132A expands market access for small craft producers

√ Measure that provided temporary relief during COVID-19 now permanent

Gov. 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. Her team said, “The newly signed law opens significant opportunities for the state’s growing craft beverage industry by providing a vital market expansion tool – allowing these producers to ship their unique products directly to consumers within New York and across state lines.”

Hochul said, “New York’s craft manufacturers create distinctive, world-class products that deserve a broader audience. 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.”

Expanding market access for craft producers

Hochul’s team said, “New York’s craft cider and spirit producers often struggle 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. Direct-to-consumer shipping offers an essential new outlet for these smaller producers, enabling them to build brand loyalty by connecting directly with consumers who want to enjoy the unique products that define New York’s craft beverage industry. 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. By allowing these manufacturers to ship directly to consumers, New York strengthens its position as a leader in the craft beverage industry while supporting the state's broader agricultural economy.

“This legislation also represents a milestone for parity for New York's spirits and cider producers, who have long advocated for the same privileges that wine manufacturers have enjoyed for nearly two decades, while providing safeguards against underage access to alcohol and ensuring proper tax collection by mirroring the responsible sales and delivery practices established under the DTC wine shipping laws.”

Temporary relief now permanent

During the COVID-19 pandemic, New York craft manufacturers of spirits and cider were granted temporary DTC shipping privileges to help them survive the economic downturn. Hochul’s team said, “This temporary measure proved highly successful, with no recorded violations, demonstrating that direct shipping can be done safely and responsibly. The new law permanently codifies this privilege, allowing small craft manufacturers to continue growing their businesses by reaching customers both within and outside of New York.”

New York State Liquor Authority Chair Lily Fan said, “This legislation will hopefully support the long-term survival and create another growth spurt of New York’s vibrant craft and farm alcohol producers. 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 Gov. Kathy Hochul and her team’s leadership on this issue. I truly embrace and celebrate the partnership with our bill sponsors and committee chairs: Sen. Skoufis, Assembly member Lupardo and Assembly member Stirpe. I look forward to continuing to bring efficiency to our industry and affordability to all consumers while ensuring public safety.”

New York State Agriculture Commissioner Richard A. Ball said, “This legislation provides our distilleries and cideries with tremendous opportunity for growth that will have a ripple effect on our economy. 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.”

New York State Distillers Guild Executive Director Teresa Casey said, “Gov. Hochul’s signature on legislation authorizing distillers and cider makers to ship direct to consumers gives our New York craft beverage producers the opportunity to survive and thrive. This timely action builds on 20 years of forward-thinking public policy decisions in the Empire State that have helped our spirits, cider, wine and beer become the nationally renowned products they are now. This is a win for our producers, the consumers who will now be able to safely enjoy quality craft spirits from all over the state, the farmers who provide our most important ingredients, and the hospitality and tourism businesses in all our communities. We also want to thank our lead legislative sponsors, Assemblywoman Lupardo and Sen. Skoufis, for their extraordinary leadership in shepherding this bill through the Legislature with strong bipartisan support.”

New York Distiller’s Guild President Brian Facquet said, “The passage of manufacturer direct-to-consumer shipping will empower our New York distillers to connect with the consumers who seek them out and tap into our fan base to grow outside of our geographic areas. Manufacturer DTC will fuel our growth, strengthen our New York state brands, and boost our agricultural manufacturing businesses. Thank you, Gov. Hochul, for paving the way for a future of our New York state distillers brimming with hope and optimism.”

New York Cider Association Executive Director Scott Ramsey said, “We are so thrilled and grateful for the leadership demonstrated by Gov. Hochul in signing this direct-to-consumer shipping bill into law. With her signature, she has recognized the significant contribution our NY hard cider producers, growers and farmers have been making for years to the agricultural and tourism economy of their communities and to this state. This legislation will help strengthen NY cider’s capability to build this emerging category for all parties involved and respond to the consumer’s needs in a contemporary 2024 marketplace. By allowing our NY cider growers, producers and farmers the ability to directly connect with the customers and build their businesses in a safe and meaningful way – just as NY wine has had for decades – this legislation will help to secure NY cider’s leadership status in this industry while also fostering the growth of NY cider’s economic impact and viability to our state’s agricultural landscape.”

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.”

The press release added, “This legislation further builds upon Hochul’s efforts to modernize New York’s Alcoholic Beverage Control laws, including creating temporary permits to get new manufacturers open quickly, adding spirits – in addition to beer and wine – at one-day special events, expanding outdoor dining, and extending drinks-to-go.

“The new law takes effect in 90 days, just in time for the upcoming holiday season, allowing consumers to explore and enjoy New York’s world-class craft spirits, cider and mead from the comfort of their own homes.”