Provides for the sale of cider by a wholesale wine licensee

BILL NUMBER:S5488

Title of bill

An act to amend the alcoholic beverage control law, in relation to providing for the sale of cider by a wholesale wine licensee

Purpose

The purpose of this bill is to allow wine and spirits wholesalers to sell cider from their licensed premise.

Summary of provisions

Section 62 and Subdivision 2 of Section 78 of the alcohol beverage control law are amended by adding: A wholesale liquor licensee, as defined under this chapter shall, upon the payment of an additional annual license fee of one hundred twenty five dollars, be permitted to sell cider as defined under this chapter at wholesale from duly licensed premises, to duly licensed beer, wine and liquor retailers and to other holders of licenses under this chapter, in bottles, barrels or casks, and to sell and deliver cider to persons outside the state pursuant to the laws of the place of such delivery.

Justification

In recent years, the production of hard cider has been rapidly expanding, across the United States and is widely regarded as the newest and one of the fastest beverage growth categories. New York State is the second-largest producer of apples in the country and has a long history in apple farming and cider production. There is a great opportunity for New York State to take advantage of the cider boom in order to spur economic growth and job creation, however current provisions under the alcoholic beverage law are inhibiting.

Although the holder of a wine wholesale license or a liquor wholesale license is permitted to hold a cider wholesale license, section 104 of the alcoholic beverage law provides, "No wholesaler shall be engaged in any other business on the premises to be licensed.." therefore prohibiting the sale of cider at wine and liquor wholesaler facilities. While the sale of cider by persons licensed to sell wine and spirits would greatly aid the economic growth of the cider industry in New York, it is not economically feasible unless the wine and liquor wholesalers can do this from the same facility it currently uses to sell wine and spirits.

If the proposed bill is enacted into law, wine and liquor wholesalers will sell cider to package stores and on premise licenses. This will greatly increase the number of outlets that carry cider, resulting in a significant increase in the demand for New York State apples. As interest in cider grows, so will the interest in the people who produce it and there will be a significant boost to tourism in agricultural areas throughout New York State. In turn, this will lead to an increase in employment.

Legislative history

New Bill

Fiscal implications

None

Effective date

This act shall take effect immediately.