Tracy Jong

Understanding the latest changes to New York’s farm distillery license

No distiller shall be engaged in any other business on the licensed premises.

A farm distillery license can be granted to the holder of a class A, A-1, B,

B-1 or C distiller’s license, a winery license or a farm winery license for use at such licensee’s existing licensed premises. The  holder  of  a  farm  distillery  license  that  simultaneously holds a winery, farm winery or any class of a distiller’s  license  on  the  same  premises may share and use the same tasting room  facilities to conduct wine and liquor tastings  that  such  licensee  is  otherwise authorized to conduct.

In the case of the holder of a class A, A-1, B, B-1 or C distiller’s license who operates a farm distillery on the same premises, the liquor manufactured pursuant to the farm distillery license shall not be considered with respect  to any limitation  on  the volume that may be manufactured by the class A, A-1, B, B-1 or C distillery.

Manufacturing privileges:

  • manufacture liquor primarily from farm and  food  products and to put such liquor into containers of not  more  than  one  quart  each,  which  containers shall then be sealed.
  • no holder of a farm distillery license shall manufacture in excess of seventy-five thousand gallons of liquor annually and shall manufacture  at  least fifty gallons of liquor per year.
  • only one of said activities of a distillery, a rectifying plant or a fruit brandy distillery; a separate license shall  be  required for  each  such  activity

Sales privileges:

  • no distiller shall sell or agree to sell any  liquor,  alcohol or  spirits  to  any wholesaler or any retailer who is not duly licensed  to sell liquor, alcohol or spirits  at  wholesale  or retail  at  the time of such agreement and sale or sell or agree to sell  any liquor, alcohol or spirits  to  persons  outside  the  state  except  pursuant to the laws of the place of such sale or delivery.
  • sell such liquor at  wholesale, for resale, and to licensed  farm  wineries,  farm  cideries,  farm  breweries  and  other  farm  distilleries,  wholesale  and  retail  licensees, and permittees.
  • sell at retail, for personal use, in 1 quart or less sealed containers. Retail sales by a licensed farm distillery may be made only to customers who are physically present upon the licensed premises and such sale shall be concluded by the customer’s taking, with him  or  her,  of  the sealed containers purchased by the customer at the time the customer  leaves the licensed premises; Such retail sales shall not be made where the order is placed by letter, telephone, fax or e-mail, or where the customer  otherwise  does  not  place  the  order while the customer is physically present upon the premises; Such retail sales shall not be made where the contemplated  sale  requires  the  licensee  to  transport or ship by common carrier, sealed  containers of liquor to a customer; NOTE NO INTERNET SALES, NO SHIPPING.
  • sell in bulk, liquor manufactured by the licensee to a winery or farm winery licensee, or to the holder of a class A, A-1, B, B-1 or C distiller’s license.
  • sell at retail for consumption off the premises New York state labelled beer.
  • sell at retail for consumption off the  premises  New  York  state  labelled  cider  manufactured  by a licensed  brewer, licensed farm brewery,  licensed  farm  winery,  licensed  cider  producer or licensed farm cidery.
  • sell at retail for consumption off the premises New York state labelled wine.
  • with an additional  permit  to  sell  liquor  in  a  sealed  container  for  off-premises  consumption at the  state  fair,  at  recognized  county  fairs  and  at  farmers’  markets  operated on a not-for-profit basis. As a condition of the permit a representative from the distillery must be present at the time of sale.
  • sell  at  retail  for  consumption  on  the  licensed  premises, any liquor manufactured by the  licensee or any New York state labeled liquor provided,    the  licensee  shall regularly keep food available for sale or service to its  retail customers for consumption on the premises. A  licensee  providing  the  following  shall  be  deemed  in  compliance  with  this provision:  sandwiches,  soups  or  other  such  foods,  whether  fresh,  processed,  pre-cooked  or  frozen;  and/or  food  items  intended to compliment the  tasting of alcoholic beverages, which shall mean a diversified selection  of food that is ordinarily consumed without the use of tableware and can  be conveniently consumed while standing or walking,  including  but  not  limited to: cheese, fruits, vegetables, chocolates, breads, mustards and  crackers.

Tasting privileges:

  • conduct tastings of New York state labelled beer.
  • conduct tastings of New  York  state  labelled  cider  manufactured  by a licensed  brewer, licensed farm brewery,  licensed  farm  winery,  licensed  cider  producer or licensed farm cidery.
  • Conduct tastings of New York state labelled wine.
  • consumer tastings of liquor manufactured by  the  licensee  and  from no more than three other class A, A-1, B, B-1, C or D distilleries, provided that only liquor manufactured primarily from farm and food products, and an official agent, servant or employee of the licensee  shall  be  physically  present  at  all  times  during  the conduct of the consumer  tasting of liquor and no consumer may be provided, directly or  indirectly more than  three  samples  of  liquor for tasting in one calendar day; or with a sample of liquor for tasting equal to more than one-quarter fluid ounce
  • conduct consumer  tastings  of  liquor  the state fair, at recognized county fairs and  at farmers’ markets operated on a not-for-profit basis.

Other privileges:

  • may operate up  to one branch office located away from the licensed farm distillery. Such location shall be considered part of the licensed premises and  all  activities  allowed  at  and  limited  to  the  farm  distillery  may be  conducted at the branch office. Such branch office shall not be  located  within,  share  a  common  entrance  and exit with, or have any interior  access to any  other  business,  including  premises  licensed  to  sell  alcoholic beverages at retail.
  • operate a restaurant, hotel,  catering  establishment,  or  other  food  and drinking establishment in or adjacent to the licensed premises   and sell at such place, at  retail  for  consumption  on  the  premises,  liquor  manufactured  by  the  licensee  and  any New York state labeled  liquor and with an on-premises full liquor license, sell other alcoholic beverages at retail for consumption on  the premises at such establishment.