On August 19, Governor Kathy Hochul signed landmark legislation (S.2852A/A.3132A) that allows New York’s small craft manufacturers of spirits, cider, and mead to ship directly to consumers. 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.
“New York’s craft manufacturers create distinctive, world-class products that deserve a broader audience,” Governor Hochul said. “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.”
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.
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. 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 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 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.
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