ALBANY (TNS) — Small distillers across the state are celebrating passage this month of a long-awaited measure that, if signed into law by the governor, would allow them to ship their product directly to consumers — similar to the way that New York wineries have been able to do for years.
It’s still uncertain, though, if the bill, which was heavily opposed by deep-pocketed liquor distributors and retailers, will be signed by Gov. Kathy Hochul.
The governor’s office said Hochul will review the legislation.
“Our lawmakers did something amazing. They sided with small business, and they sided with logic,” said Brian Facquet, president of the state Distillers Guild, an approximately 100-member group that includes small craft distilleries and farm-based cideries or distilleries.
Owners of such operations, including Albany Distilling and Nine Pin Cider — both in the Capital Region — would be able for the first time to ship liquor, hard cider or mead directly to consumers, thus opening up a new avenue for sales. New York wineries, such as those in the Finger Lakes, have been able to do this for decades, and some have said it has helped them stay in business and survive during difficult times such as the COVID-19 pandemic in 2020, said Facquet. Distillers during the “lockdown” period of the pandemic were able to ship directly to consumers, but that ended when the pandemic restrictions were lifted.
Of the Distillers Guild members, only half of respondents to recent a poll said they weren’t confident they would still be in business at the end of 2025 unless there were some regulatory or economic changes. They ranked the ability to sell directly to consumers as the top change that would benefit their businesses.
That’s especially true given the rising use of online purchases. “If products are not available in local stores, the public has come to expect an online option, just like they enjoy with wine purchases,” said Donna Lupardo, the Binghamton Assembly member who along with fellow Democrat Sen. James Skoufis from the Hudson Valley sponsored the direct-to-consumer bill.
The law would allow consumers in New York to buy distilled alcoholic products that could be delivered by a carrier like UPS or FedEx.
Products also could be shipped to the approximately dozen states that have reciprocity agreements with New York regarding direct-to-consumer sales.
Distillers covered under the law would have to produce 75,000 gallons or fewer per year.
Most small distillers in New York produce a fraction of that amount, said Facquet. As a result, these craft distillers are too small to get distributors who would work to get their product onto liquor store shelves.
A fair number of the small distillers are in rural or tourist areas where visitors step into their tasting rooms. If they like the product, they can buy on the spot. But for someone visiting the Catskills or Adirondacks from out of state they might have to pack it on their flight home or put in their car. At a winery, by contrast, they can simply have it shipped.
Cognizant of the rural distilleries, the New York Farm Bureau also supported the direct-to-consumer bill. “This legislation would help further elevate New York state’s farm beverage industry by allowing direct shipment to customers,” the organization wrote in a memo regarding the legislation.
“We take great pride in sourcing our apples and other fruits from local farms and orchards,” remarked Alejandro del Peral, Nine Pin’s co-owner and head cidermaker.
Liquor stores and large distributors though, have long opposed the direct-to-consumer bill and it was uncertain if the measure would pass until the waning hours of this past legislative session.
Groups like the Metropolitan Package Association, which represents New York City liquor stores, and the state Liquor Store Association had opposed the measure as well as large distributors. These opponents put up a heated last-minute lobbying campaign against it.
One of their arguments was that it would hurt existing liquor stores, causing them to potentially lay off employees, with some possibly going out of business.
One worry was that large multinational liquor producers such as Beam Suntory, which lobbied for the bill, would derive an advantage, perhaps by buying up small distilleries. “Let’s protect all the little guys,” said Michael Correra, executive director of the Metropolitan Package Association.
Lupardo, the Assembly sponsor, said small cideries and distilleries are basically a niche market that relies heavily on tourism and tasting rooms and doesn’t really compete with retailers.
“I spent a lot of time speaking with individual members to basically allay their biggest concern, that it would have an impact on liquor stores,” she said. “It took a long time to get this over the finish line.”
