What is a New York State farm brewery license?
A New York State farm brewery license, as outlined by Article I, § 3 of the Alcoholic Beverage Control Act, applies to “any place or premises, located on a farm in New York State, where New York state labelled beer is manufactured, stored, and sold, or any other place or premises in New York state where New York state labelled beer is manufactured, stored, and sold.” For more information on what qualifies as New York State labeled beer, see our article What is New York State Labeled Beer?
Under New York law, farm brewery licensees are limited to producing a maximum of 75,000 finished barrels of beer and cider annually. Additionally, the license requires a minimum production of at least 50 barrels of beer and cider each year. If your production meets these requirements, there are several compelling reasons to apply for a farm brewery license instead of a full brewery producer license.
What are the benefits of obtaining a New York State farm brewery license?
There are numerous reasons why individuals in New York’s beer industry opt for the farm brewery license. Chief among them is the fact that the state license fee for a farm brewery is significantly lower and does not require a surety bond.
Additionally, the New York State farm brewery license allows a farm brewery to offer tastings of beer, cider, and braggot produced by the licensee or any other farm brewery in New York. Generally speaking, the license also permits tastings of New York State-labelled wine, cider, mead, braggot, and liquor, which must be manufactured by a licensee who is authorized to manufacture such. Furthermore, the farm brewery license allows the licensee to sell, at the licensed premises for consumption on or off the premises, beer, cider, and braggot manufactured by the licensee or another New York State farm brewery as well as wine and spirits manufactured by a New York State farm winery or New York State farm distillery.
Additional benefits include:
- Retail sales of beer or cider produced by the licensee or any other farm brewery in bulk (by keg, cask, or barrel) for consumption at large gatherings such as clam bakes, barbecues, picnics, outings, or similar events with over fifty attendees (excluding resale).
- Conducting tastings of the licensee’s beer and cider away from the licensed premises, though this may require additional permits.
- Operating up to five branch stores within the state under the farm brewery license.
If you are considering starting a brewery, the farm brewery license could be an excellent option for your business, provided your beer production stays within the set limitations.
Are there any limitations for New York State farm brewery licensees?
The New York State farm brewery license restricts licensees from manufacturing and selling beer that does not meet the criteria of “New York State-labelled beer.” This is a critical factor for prospective applicants to consider. Business needs can evolve, so when applying for a license through the NYSLA, it is essential for applicants to thoroughly evaluate how their products will be produced. Any business contemplating a New York State farm brewery license should review and understand the definition of New York State-labelled beer, as outlined in Article I, § 3 of the Alcoholic Beverage Control Act, and stay informed about any changes to this definition.
For more information on how Lindsey Zahn P.C. can assist your company with a farm brewery license, contact us at info@zahnlawpc.com or (929) ZAHNLAW (929-924-6529).
How can Lindsey Zahn P.C. assist with your New York State farm brewery 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).