Today, the New York State Distillers Guild announced that legislation introduced by Assemblymember Donna Lupardo and Senator James Skoufis (A6277 / S567) establishing a Brand Owner’s license, has passed both houses of the State Legislature.
When Governor Hochul signs this bill, it will close a gap in New York’s alcohol law that makes it difficult for New York State Brand Owners to work with Distillers in the state. Until this bill is enacted, New York law does not recognize the federal Brand Owner Permit, or Federal Basic Permit.
This bill will enable New York Distillers to “co-pack” or produce spirits for New York Brand Owners much more easily. Right now, Distillers jump through several administrative hoops to work with New York Brand Owners – hoops that do nothing to protect consumers, help businesses, or generate tax revenues. The challenges presented by existing law have driven New York Brand Owners to work with out-of-state distillers, even when they wanted to work with New York producers.
“Brand Owners” are federal- and state-registered entities that have a Federal Basic Permit that allows them to participate in the sale of alcohol anywhere in the U.S. The Brand Owner may contract with a licensed beverage producer (beer, wine, spirits, and cider) to manufacture products on their behalf, which the Brand Owner can then sell to licensed retailers through licensed distributors.
This historic bill is necessary because – until it is signed – New York law does not recognize the Federal Basic Permit for New York State-registered Brand Owners. This means New York Brand Owners can’t own their brands or receive payments from distributors without burdensome workarounds.
This common-sense legislation will incentivize in-state production, boost the economic growth of New York’s craft spirits industry, and raise tax collections by increasing opportunities for co-packing opportunities between New York Brand Owners and producers.
Assemblywoman Donna Lupardo, Chair, Assembly Agriculture Committee said, “I was very pleased to help deliver this needed fix to NY’s antiquated liquor laws, allowing new business opportunities for NY’s craft beverage industry. After last year’s successful Direct to Consumer shipping bill was signed, Sen. Skoufis and I set our sights on this issue. I’m sure that Governor Hochul will agree that it certainly is time to update this law.”
Senator James Skoufis said, “Distilleries, cideries, and breweries are economic engines here in New York. To allow these small businesses to contract with in-state co-packers will increase opportunities to grow those businesses and reduce costs on New York’s craft producers. The license this legislation creates streamlines and formalizes what is standard practice in the larger alcohol industry, and will lead to more brands being manufactured in New York at a lower cost.”
Brian Facquet, President, NYS Distillers Guild, said, “The passage of the Brand Owner bill is a tremendous win for New York’s craft beverage industry. This legislation will help streamline the process for New York manufacturers—across spirits, beer, wine, and cider—to co-pack and custom-produce for Brand Owners. It’s not just a regulatory improvement; it’s an investment in small businesses that will generate jobs, tax revenue, and permit fees across the state. We’re deeply grateful to Assemblymember Donna Lupardo and Senator James Skoufis for their continued leadership and commitment to New York’s independent producers.”
Teresa Casey, Executive Director, NYS Distillers Guild, said “With passage of the Brand Owner bill, Assemblywoman Lupardo and Senator Skoufis have once again ensured that New York’s alcohol law evolves to serve New York’s craft beverage producers and, and this time, also serve Brand Owners in the Empire State who will be able work more easily with New York producers.”