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New York’s small craft manufacturers of spirits, cider, and mead can ship directly to consumers, both within New York and across state lines. New York Governor Kathy Hochul signed the legislation this week, and it takes effect in 90 days.
New York’s spirits and cider producers have long advocated for this change, which allows them the same privileges that wine manufacturers have enjoyed for nearly two decades. 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.
“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.”
Online sales and direct to consumer (DTC) shipping is hugely important in today’s market. For craft producers, it can be a vital market expansion tool. Consider that 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.
“Manufacturer DTC will fuel our growth, strengthen our New York State brands, and boost our agricultural manufacturing businesses,” stated New York Distiller’s Guild President Brian Facquet.
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 — 87% of regular craft spirits drinkers want to purchase craft spirits via DtC shipping legally and 82% want to see laws change to expand DtC spirits shipping, according to the 2023 Direct-to-Consumer Spirits Shipping Report from Sovos ShipCompliant and the ACSA.
“Not only do spirits drinkers support legalizing DtC shipment of spirits, they’re willing to pay for it. The DtC spirits shipping report also found spirits drinkers are willing to spend about $114 each month on craft spirits via DtC,” says Alex Koral, the Regulatory General Counsel at Sovos ShipCompliant.
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.
Supporting craft beverage producers also helps New York’s agricultural economy.
“This legislation provides our distilleries and cideries with tremendous opportunity for growth that will have a ripple effect on our economy,” stated New York State Agriculture Commissioner Richard A. Ball. “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.”
“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,” stated New York Farm Bureau President David Fisher.
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