What is a Farm Meadery License and What are the Benefits for Licensees?
The New York State Liquor Authority (“NYSLA”) allows applicants to apply for a farm meadery license, which permits the operation of a meadery for the manufacture of up to 250,000 gallons of New York State-labeled mead and/or braggot annually.
In addition to the state license, a federal permit is required to produce mead in the U.S. Generally, if the mead is a wine-based product, the producer must obtain a winery permit from the Alcohol and Tobacco Tax and Trade Bureau (“TTB“) and a state-level license from the NYSLA. The specific type of license needed for mead will depend on the production process, but typically, mead is classified as a wine if made using a wine base. This article focuses on obtaining a farm meadery permit with the NYSLA.
New York law limits farm meadery licensees to a maximum of 250,000 finished gallons of wine per year. If your production falls within this limit, there are several benefits to applying for a farm meadery license over a full winery license.
Why Choose a Farm Meadery License?
Many mead producers in New York prefer the farm meadery license due to its advantages:
- Lower Costs: As of the date of publication, the state license fee for a farm meadery license is significantly less than that for a traditional winery license and requires a lower surety bond.
- Wholesale and Retail Sales: A farm meadery license allows the licensee to sell at both wholesale and retail levels, similar to a full winery license. Licensees can sell their mead to other New York State-licensed wholesalers or retailers, as well as in bulk to other New York State-licensed manufacturers.
- Consumer-Facing Sales: Licensees can sell their products directly to consumers (i.e., from a tasting room or similar).
- Promotion and Events: Farm meaderies can host tastings and promotional events at their premises. They can also sell their products at farmer’s markets and fairs, enhancing visibility and direct customer engagement.
What are the Requirements for a Farm Meadery License?
To obtain a farm meadery license through the NYSLA, applicants must provide:
- Documentation:
- Lease, deed, or contract of sale for the property.
- Diagrams of the proposed premises, clearly labeled and detailed.
- Photographs of the exterior and interior of the proposed premises.
- Certificate of Authority reflecting the proposed address.
- Financial documentation showing the source and availability of funds.
- Relevant sections of the state license application.
- Federal Permit:
- Since mead is generally classified as a wine-based product, producers need to obtain a federal basic permit from the TTB in addition to the state-level license.
- New York State Labeling:
- Mead and braggot must qualify for New York State labeling to be produced under this license.
- * Not an exhaustive list. Please consult your attorney for specific items that may be needed for your business.
Limitations of the Farm Meadery License
It’s important to note that the New York State farm meadery license does not allow the production of mead or braggot that does not qualify for New York State labeling. Potential applicants should carefully consider how their products will be produced and labeled when applying for this license.
How Can Lindsey Zahn P.C. Help Your Meadery Obtain a Farm Meadery License?
Lindsey Zahn P.C. can help streamline the application process for obtaining a farm meadery license by:
- Advising on the completing of the license application.
- Providing guidance on the necessary documentation and regulatory requirements.
- Assisting with the federal TTB permit applications if needed.
- Offering advice on the best licensing options for your business model.
For more information on how we can assist with your Farm Meadery License application, please contact us at info@zahnlawpc.com or 929-924-6529.