Friday, April 24, 2020

New Brewery Law: Increased Limits for On-Premises Sale

On April 17, 2020, Governor Cuomo signed Senate Bill S7186, which relates to allowing restaurant-brewers to sell up to 250 barrels of product without a wholesaler, but what does the new law really mean for breweries?

Historically, breweries which sold beer on-premises were limited to making and selling only 250 barrels. To incentivize breweries to invest in their own product, the NYS Legislature increased the limit to 2,000 barrels through Senate Bill S5427. However, they inadvertently removed the language allowing a brewery to sell limited quantities without the use of a wholesaler or a person licensed to sell any beverage for purposes of resale.

Through Senate Bill S7186, Section 64-c of the ABC law was recently amended to clarify that breweries are allowed to sell 2000 barrels per year and up to 250 of those barrels may be sold on-premises without any additional licenses. Any number of barrels over 250, however, must be sold and distributed to other retailers through a wholesaler.

Thus, the new brewery law clarifies that breweries are allowed to sell limited quantities of their product in their own premises and they are also allowed to sell and distribute the rest of their product into other bars, restaurants, and retailers through a wholesaler, and thus allowing them to invest in and grow their businesses.