The New York State farm winery license is one of the craft manufacturer licenses that is issued by the New York State Liquor Authority (“NYSLA”). The farm winery license is an excellent opportunity for a wine enthusiast with a passion for agriculture and winemaking to establish a wine business in New York. According to Article I, § 3 of the Alcoholic Beverage Control Law, a farm winery is defined as a place located on a farm in New York State where wine is both manufactured and sold. In this article, we explore the benefits of obtaining a farm winery license and the limitations associated with it.
What are the benefits of obtaining a farm winery license in New York State?
Some of the benefits of a New York State farm winery license are discussed below:
- Lower License Fees and No Surety Bond Requirement: One of the primary advantages of obtaining a farm winery license in New York State is the reduced state license fee compared to a full winery license. Additionally, unlike a full winery license, a farm winery license does not require a surety bond, making it a more cost-effective option for aspiring winemakers.
- Wholesale and Retail Selling Privileges: Farm winery licensees enjoy the same selling privileges as those with a full winery license. This includes the ability to sell wines at both wholesale and retail levels, opening up opportunities to reach a broader customer base.
- Sales to Other Wineries and Wholesalers: Farm winery licensees in New York State can expand their market reach by selling their wines to other New York State-licensed wineries, farm wineries, and licensed wholesalers or retailers. This interconnectivity fosters a vibrant wine industry within the state.
- Direct Shipment: Farm wineries with an appropriate direct shipper license may enjoy the privilege of shipping wines directly to consumers
- Tastings: Generally speaking, farm winery licensees can conduct wine tastings at their licensed premises (such as in their tasting room). Moreover, farm wineries can establish branches within the state with the same privileges, making it easier to expand their presence.
- Custom Crush Services: Farm wineries can offer custom crush services, allowing individuals to produce wine for sale to others, providing a source of additional revenue and fostering collaborative efforts within the wine industry.
- Up to Five Branch Stores: Licensed farm wineries can manage up to five branch stores classified as extensions of the farm winery, offering greater convenience in setting up satellites across New York State.
What are the limitations of the New York State farm winery license?
While the farm winery license issued by NYSLA offers a great opportunity for winemakers to enter the market, there are some limitations to the farm winery license. The most significant limitations are typically with respect to the ingredient sourcing requirement as well as the location requirement.
A crucial limitation of the farm winery license is that all wine produced and sold must be labeled as New York State wine. This means that wine made from at least 75% grapes or other fruits grown or produced exclusively within New York State (for cider, the requirement is 100% apples or pome fruit; for mead, it must be 100% New York State honey). For some folks who desire using grapes or fruits grown outside of New York or sourcing juice or wine from outside of New York, the farm winery license will not be an option.
Another restriction is in regard to the location of the proposed farm winery. New York State law requires that a farm winery be located on a farm within New York State. Not all locations may qualify as a farm which will restrict a potential applicant’s choice of licenses.
How can Lindsey Zahn P.C. assist with your farm winery 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).