Governor Hochul Signs Legislation Allowing Direct to Consumer Shipping for New York Spirits and Cider

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."

Expanding Market Access for Craft Producers

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 COVID-19 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. 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 Governor Kathy Hochul and her team's leadership on this issue. I truly embrace and celebrate the partnership with our bill sponsors and committee chairs: Senator Skoufis, Assemblymember Lupardo, and Assemblymember Stirpe. I look forward to continuing to bring efficiency to our industry and affordability to all consumers while ensuring public safety."

State Senator James Skoufis said, "This new law offers not just support, but a new pathway for growth to countless New York cideries and distilleries. I fought hard for the passage of this bill - alongside advocates and my legislative partner-because I want New York's craft beverage industry and all the intrepid farmers, producers, and small business owners to do more than survive in a post-pandemic landscape; I want them to thrive. I sincerely thank the Governor for signing this bill that will have a measurable and meaningful impact on craft beverage producers not just in my district, but all across New York State."

State Senator Michelle Hinchey said, "Direct-to-consumer shipping is a lifeline for New York's craft cideries and distilleries, and this new business opportunity means more customers, more sales, and a better chance for these small businesses to not only stay in the game but succeed. I'm thrilled this legislation has passed the finish line to support the New Yorkers who pour their hearts into making their businesses thrive. Sharing the incredible craft beverages of the Hudson Valley and New York with more areas through direct-to-consumer shipping is a huge win, and I thank the bill sponsors and Governor for making it happen and getting equity for these businesses."

Assemblymember Donna Lupardo said, "On behalf of New York's craft distilleries and cideries, a heartfelt thank you to Governor Hochul for signing our Direct-to-Consumer legislation into law. I'd also like to thank Sen. Skoufis and our legislative colleagues, who understood how important this is for the future of NY's craft beverage industry, and to the farmers who supply their ingredients. NY produces some of the finest distilled spirits and cider in the country, long sought after by customers who could not find them on local liquor store shelves. I am especially thankful that the law will be in effect for this year's holiday season, giving a significant economic boost to this struggling industry."

Assemblymember Al Stirpe said, "I'm hopeful that this piece of legislation allows New York's craft spirits, ciders and meads to be exposed to a national audience, allowing these manufacturers to grow to the next level. It is our desire that someday these craft beverages will take their place next to other well-known national and international brands on the shelves of liquor stores throughout our state and the world".

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, "Governor Hochul'ssignature 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 Senator 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, Governor 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 Governor 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."

Nine Pin Cider Owner Sonya Del Peral said, "We've worked long and hard to achieve this obvious modern-day option for consumer choice across New York State as well as to achieve needed parity among the craft beverage industry sectors. Our sincere gratitude to Governor Hochul for signing the bill in time for the upcoming holiday season which provides farm cideries the opportunity to begin offering exciting cider options not found on the shelves to New York cider fans. The establishment of this new channel of trade will position New York farm cideries to continue supporting the Empire State's extraordinary orchards and farms - Drink NY Apples!"

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."

This legislation further builds upon Governor 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.

Contact the Governor's Office