One step forward, two steps back:  State efforts to reduce licensing backlogs are meaningless to New York alcohol manufacturers with the Federal government shutdown.

The Federal government shutdown delayed production and sale of new alcohol products, undoubtedly impacting the holiday sales season.  20% – 35% of annual revenues for alcohol producers are generated during November and December.  Since alcohol recipe and label application approvals were not processed during the federal TTB shutdown, many brewers, winemakers and cideries were unable to make and bottle product during this critical fall harvest period. Without that lead time to manufacture and bottle, they are left unable to meet holiday demand.  Unfortunately, these private businesses won’t be entitled to retroactive pay and unemployment benefits like the federal government workers.

While the New York State government is making efforts to help its alcoholic beverage manufacturing industry by reducing its backlog and license application processing times, the benefit can’t be realized with the delays of the federal government in processing the federal applications.  The state licenses and approvals can’t be granted until federal approval is issued.

We’d like to hear about how the federal shutdown affected your business.