New York craft spirits get boost with legislation

New York’s craft spirits sector has received a boost after a new act was signed to ease “burdensome” requirements placed on producers.

New York governor Andrew Cuomo has signed an act to ease restrictions placed on craft beverage producers in the state

As reported in June this year, state legislators and New York governor Andrew Cuomo reached an agreement to scale back some of the restrictions imposed on producers.

The amended law is a response to criticism claiming the current legislation is overly restrictive, limiting craft company’s marketing abilities, and deters them from growing due to higher licensing fees.

Cuomo has now signed the Craft New York Act to mitigate criticism and boost the industry.

As part of the new legislation, distilleries, breweries and wineries will be able to hold tastings and sell their products by the glass or bottle without the need for a separate license. Producers can also increase the retail outlets where they sell their products and operate a branch office without an additional license.

The act reduces the cost for small distilleries by increasing the production cap without higher fees.

Cuomo also launched two craft beverage grant programmes, a US$3 million marketing and promotional scheme and US$1m tourism grant to “raise the profile” of the state’s craft beverage industry.

“This new law builds upon this administration’s ongoing efforts to promote this industry by cutting red tape, reducing burdensome regulations and removing artificial barriers that stifled growth,” Cuomo said. “New York is truly open for business.”

New York has seen significant growth in its craft sector in recent years, with 52 farm distilleries currently operating in the state compared to 10 in 2011.

The Craft New York Act will take effect in four weeks’ time.