Skoufis legislation benefiting State Distillers Guild headed to Governor’s desk

The New York State Distillers Guild announced this week that legislation introduced by Senator James Skoufis and Assemblymember Donna Lupardo (D-Binghamton) establishing a Brand Owner’s license has passed both houses of the State Legislature.

If Governor Hochul signs this bill, it will close a gap in the state’s alcohol law that makes it difficult for New York State Brand Owners to work with distillers in the state. Until this bill is enacted, state law does not recognize the federal Brand Owner Permit or Federal Basic Permit.

“Distilleries, cideries, and breweries are economic engines here in New York,” Skoufis (D-Orange County) said. “To allow these small businesses to contract with in-state co-packers will increase opportunities to grow those businesses and reduce costs on New York’s craft producers. The license this legislation creates streamlines and formalizes what is standard practice in the larger alcohol industry, and will lead to more brands being manufactured in New York at a lower cost.”

This bill will enable New York Distillers to “co-pack” or produce spirits for New York Brand Owners much more easily.  Right now, Distillers jump through several administrative hoops to work with New York Brand Owners – hoops that do nothing to protect consumers, help businesses, or generate tax revenues.  The challenges presented by existing law have driven New York Brand Owners to work with out-of-state distillers, even when they wanted to work with New York producers.

“Brand Owners” are federal- and state-registered entities that have a Federal Basic Permit that allows them to participate in the sale of alcohol anywhere in the U.S.  The Brand Owner may contract with a licensed beverage producer (beer, wine, spirits, and cider) to manufacture products on their behalf, which the Brand Owner can then sell to licensed retailers through licensed distributors.

Until the bill is signed, state law does not recognize the Federal Basic Permit for New York State-registered Brand Owners.  This means New York Brand Owners can’t own their brands or receive payments from distributors without burdensome workarounds.

“The passage of the Brand Owner bill is a tremendous win for New York’s craft beverage industry,” said Brian Facquet, President, NYS Distillers Guild. “This legislation will help streamline the process for New York manufacturers—across spirits, beer, wine, and cider—to co-pack and custom-produce for Brand Owners. It’s not just a regulatory improvement; it’s an investment in small businesses that will generate jobs, tax revenue, and permit fees across the state.”