What is a NYSLA farm distillery license?
The New York State farm distillery license is one of the craft manufacturer licenses that is issued by the New York State Liquor Authority (“NYSLA”). New York State farm distilleries, as outlined in Article I, § 3 of the Alcoholic Beverage Control Law, includes “any place or premises located on a farm in New York state in which liquor is manufactured and sold, or any other place or premises in New York state in which liquor is manufactured primarily from farm and food products . . . .”
If you are contemplating obtaining a distillery license in New York State, the farm distillery license may be advantages to your business, provided your spirits production adheres to set limitations. State regulations cap farm distillery licensees at 75,000 finished gallons of New York State-labeled liquor annually. If your production aligns with these constraints, opting for a farm distillery license, among the array of distiller licenses in New York State, offers numerous compelling advantages. For more information on what qualifies as “New York State-labeled liquor,” see our post Who Can Label Liquor as “New York State?”
Entrepreneurs in the spirits industry may opt for the farm distillery license for several compelling reasons. Chief among them is the substantially lower state license fee associated with the farm distillery license, coupled with the absence of a mandatory surety bond (with respect to the state license application only). In comparison to some of the other distillery licenses offered by the NYSLA, the farm distillery is tens of thousands of dollars less.
What are the benefits of obtaining a farm distillery license in New York State?
Some of the benefits of a New York State farm distillery license are discussed below:
- The NYSLA farm distillery license allows a licensee to sell at wholesale and retail. In addition to that, a licensee can sell in bulk to any winery or farm winery as well as to holders of a New York State Class A, A-1, B, B-1, or C distiller’s license.
- The holder of a farm distillery license is authorized to conduct tastings and retail sales for off-premises consumption of New York State-labeled beer produced by a New York State-licensed brewer or New York State-licensed farm brewery.
- License holders can conduct tastings and sell for off-premise consumption New York State-labeled cider manufactured by a brewer, farm brewery, farm winery, cider producer, or farm cidery (any of which must be licensed in New York State).
- Farm distillery licensees can conduct tastings and retail sales for off-premises consumption of New York State-labeled wine manufactured by a New York State-licensed winery or New York State-licensed farm winery.
- A farm distillery can conduct tastings of New York State-labeled mead and sell the same for on- or off-premises consumption provided such is manufactured by a licensee in New York State authorized to produce mead.
- Similarly, a farm distillery can conduct tastings of New York State-labeled mead and sell the same for on- or off-premises consumption provided such is manufactured by a licensee in New York State authorized to produce mead.
Not an exhaustive list. For more details, see § 61 of the Alcoholic Beverage Control Law.
Are there any limitations for farm distillery licensees?
While not entirely a limitation, there are some restrictions under the New York State farm distillery license. Specifically, the license mandates the production of liquor that is predominantly derived from farm and agricultural products such as fruits, vegetables, grains, honey, maple, sap, or other items grown or manufactured within New York State (as per NYSLA Advisory #2014-20). The NYSLA has taken the position that a product may be labeled as “New York state labelled liquor” as long as 75% (by volume) of the fruits, vegetables, grain and grain products, honey, maple sap, or other agricultural products used in the liquor are grown or produced in New York State.
This percentage requirement is a crucial factor for potential applicants to carefully contemplate. While the dynamics of business needs may evolve, at the time of applying for a license through the NYSLA, it is paramount for the applicant to meticulously assess how their products will be crafted.
How can Lindsey Zahn P.C. assist with your farm distillery license?
Lindsey Zahn P.C. is a firm that focuses on alcohol beverage law and has represented a multitude of clients before alcohol beverage agencies, ranging from wineries to breweries to distilleries to importers to wholesalers and beyond. The firm has experience working on applications for startups to multinational conglomerates and with drafting brand new permit applications as well as drafting amendments. Our experience also extends to labeling, formulations, excise taxes, trade practices, and beyond.
Contact Lindsey Zahn P.C. to schedule an introductory meeting to discuss your needs and products and to learn more about how we can help: info@zahnlawpc.com or (929) ZAHNLAW (929-924-6529).