UNDER NEWLY SIGNED LEGISLATION BY GOVERNOR KATHY HOCHUL, SMALL CRAFT MANUFACTURERS IN NEW YORK WILL BE ABLE TO SHIP CIDER, SPIRITS, AND MEADS DIRECTLY TO CUSTOMERS STARTING THIS FALL.

IN RECENT YEARS, CRAFT OWNERS HAVE RAISED MAJOR CONCERNS THAT THEY MAY NOT BE ABLE TO CONTINUE THEIR BUSINESS UNLESS THERE WAS MAJOR ECONOMIC AND REGULATORY CHANGE IN THE INDUSTRY.

FOR THE PAST TWO DECADES, THE ABILITY TO SHIP ALCOHOL BEVERAGES DIRECTLY TO CONSUMERS IN NEW YORK WAS RESTRICTED IN NEW YORK WAS RESTRICTED TO SOLELY WINERIES, AND CRAFT MANUFACTURERS WERE ONLY GIVEN THE AUTHORITY TO DO SO DURING THE COVID-19 PANDEMIC.

THE NEW LAW MAKES THAT AUTHORITY PERMANENT AND WILL GO INTO EFFECT IN NOVEMBER.

TO LEARN MORE ABOUT THE IMPACT OF THE LEGISLATION AND THE PATH TO GETTING IT SIGNED, WE SAT DOWN WITH STATE SENATOR JAMES SKOUFIS, WHO SPONSORED THE LEGISLATION IN THE UPPER CHAMBER.

HERE'S THAT CONVERSATION.

THANK YOU SO MUCH FOR JOINING US TODAY, SENATOR.

MY PLEASURE.

NOW, CAN YOU TELL US A LITTLE ABOUT THE IMPETUS OF THE LEGISLATION THAT WAS NEWLY SIGNED ALLOWING FOR DIRECT-TO-CONSUMER SHIPPING OF CIDER, SPIRITS, AND MEADS FROM SMALL MANUFACTURERS ACROSS THE STATE?

WELL, FOR 20 YEARS, WE HAD A DISPARITY IN OUR STATE LAWS WHERE WINERIES COULD SHIP BOTTLES OF WINE TO CONSUMERS DIRECTLY TO THEIR HOMES, FOR LITERALLY THE PAST 20 YEARS, BUT NO OTHER PRODUCER COULD SHIP THEIR PRODUCTS IN THE SAME FASHION.

AND ESPECIALLY WHEN WE'RE TALKING ABOUT THESE SMALLER DISTILLERIES, THESE SMALLER CIDERIES THAT PRODUCE, IN ADDITION TO CIDER; GIN, WHISKEY, AND VODKA, AND THESE SMALL-BATCH CRAFT PRODUCTS, THEY HAVE A LOT OF DIFFICULTY GETTING INTO LIQUOR STORES, GETTING SHELF SPACE IN THOSE SHOPS.

THEY HAVE A LOT OF DIFFICULTY GETTING DISTRIBUTORS TO DO BUSINESS WITH THEM.

AND SO, FOR MANY OF THEM, THEIR REALLY ONLY POINT OF SALE IS WHEN SOMEONE COMES AND VISITS THEIR ACTUAL BUSINESS AND THEY CAN BUY THE PRODUCT RIGHT ON SITE, BUT THEY WERE PROHIBITED WHEN THAT PERSON, THAT TOURIST, FOR EXAMPLE, GOES BACK HOME TO SOME OTHER PART OF THE STATE AFTER VISITING A DISTILLERY AND REALLY ENJOYING THAT WHISKEY, THEY COULD NOT GET THAT BOTTLE ANY OTHER WAY OTHER THAN TRAVELING THE ONE, TWO, THREE, OR FOUR HOURS TO GO BACK TO THAT PRODUCER AND PICK UP A BOTTLE, WHICH OBVIOUSLY, FOR MOST PEOPLE, IS NOT REALISTIC.

AND SO, THIS BILL WAS AN ATTEMPT TO LEVEL THAT PLAYING FIELD AND PROVIDE THAT SAME OPPORTUNITY TO THOSE CRAFT PRODUCERS AS HAS EXISTED FOR WINERIES FOR 20 YEARS.

THAT'S WHERE THIS BILL CAME FROM, AND WE'RE THRILLED THAT IT WAS RECENTLY SIGNED INTO LAW, AND STARTING IN MID-NOVEMBER, THESE PRODUCERS WILL BE ABLE TO SHIP THEIR PRODUCT IN A SAFE, RESPONSIBLE MANNER TO CONSUMERS IN A CONVENIENT WAY FOR THEM AND FOR THE BUSINESSES, REALLY OPEN A NEW MARKETPLACE AND ALLOW THEM TO GROW AND THRIVE HERE IN NEW YORK STATE.

AND AS YOU MENTIONED, PRIOR TO THIS LEGISLATION, A LOT OF THE MANUFACTURERS COULD ONLY SELL THEIR PRODUCTS THROUGH YOU KNOW, TASTING ROOMS, AND THEY WERE ONLY ABLE TO DISTRIBUTE THEM IF THEY WERE UTILIZING THE LICENSED RETAIL STORES.

SO, CAN YOU HELP US UNPACK THE GROWTH THAT IS CURRENTLY BEING PROJECTED FOR THESE SMALL MANUFACTURERS NOW THAT THE STATE LAW HAS BEEN EXPANDED?

WELL, TO GIVE YOU A SENSE OF JUST HOW IMPORTANT THIS NEW LAW IS TO THESE SMALL DISTILLERIES AND CIDERIES, THERE WAS A SURVEY CONDUCTED BY THE NEW YORK STATE DISTILLERS GUILD ABOUT A YEAR AGO THAT SURVEYED THEIR HUNDREDS OF MEMBERS, ASKING THEM, "HOW VIABLE IS YOUR BUSINESS RIGHT NOW UNDER THE CURRENT NEW YORK STATE LAW, ALCOHOL BEVERAGE CONTROL LAW, AND THE BUSINESS ENVIRONMENT?"

AND A FULL 50% OF THEIR DISTILLER MEMBERS SAID THEY DON'T KNOW IF THEY'RE GOING TO SURVIVE THE NEXT YEAR UNDER THE CURRENT STRUCTURE AND LAWS THAT ARE IN PLACE HERE IN NEW YORK STATE.

AND ALMOST EVERY SINGLE ONE OF THEM CITED THAT THE BIGGEST GAME CHANGER TO KEEP THEIR DOORS OPEN WOULD BE DIRECT-TO-CONSUMER SHIPPING.

AND SO AGAIN, THIS IS LIFE OR DEATH -- BUSINESS, LIFE OR DEATH FOR A LOT OF THESE PRODUCERS.

AND EVEN IF IT'S NOT A MATTER OF KEEPING THE DOORS OPEN, THE MARKETPLACE IS NOW GOING TO EXPLODE AND GROW IN A WAY THAT REALLY IS NOT COMPARABLE TO ANY OTHER PIECE OF LEGISLATION, ANY OTHER LAW THAT WE COULD HAVE PASSED FOR THESE PARTICULAR SMALL BUSINESSES.

AND CAN YOU TAKE US THROUGH THE PROCESS OF GARNERING SUPPORT FOR THE BILL, GETTING IT PASSED IN THE LEGISLATURE, AND ULTIMATELY GETTING IT SIGNED INTO LAW?

SO, THIS WAS A DIFFICULT PIECE OF LEGISLATION TO PASS BECAUSE YOU DID HAVE SOME VERY DEEP-POCKETED, VERY INFLUENTIAL STAKEHOLDERS WHO WERE STRONGLY OPPOSED TO THIS BILL, AND IN PARTICULAR, THE BIG DISTRIBUTION COMPANIES, OF WHICH THERE ARE REALLY TWO IN THE LIQUOR SPACE.

AND THEY SPENT SIX FIGURES HIRING LOBBYISTS, RUNNING A REALLY DISINGENUOUS ADVERTISING CAMPAIGN TO TRY AND CONVINCE THE PUBLIC, AND IMPORTANTLY, MY LEGISLATIVE COLLEAGUES, TO TRY AND OPPOSE THIS BILL.

AND FOR A WHILE, IT LOOKED LIKE, YOU KNOW, THEY WERE MAKING TRACTION, MAKING PROGRESS FROM THEIR POINT OF VIEW, BUT WE WERE REALLY ABLE TO DISLODGE THE BILL FROM THE COMMITTEES AND GET IT MOVING THE FINAL WEEK OF THE LEGISLATIVE SESSION BEFORE WE GAVELED OUT.

AND REALLY, IT WAS NO EXAGGERATION -- A MATTER OF ME AND A COUPLE OF OTHERS WHO PARTNERED ON THIS, GOING LEGISLATOR TO LEGISLATOR, COLLEAGUE TO COLLEAGUE, AND EXPLAINING TO THEM WHY THIS BILL WAS IMPORTANT, EXPLAINING TO THEM WHY THESE MYTHS AND THESE LIES THAT WERE BEING PERPETRATED BY THE OTHER SIDE WERE NOT TRUE, AND KEEPING ON THAT UNTIL WE GOT THE NUMBER OF VOTES THAT WE NEEDED ULTIMATELY TO PASS THE LEGISLATION, AND WE DID ON THE FINAL DAY OF SESSION.

AND THE LEGISLATION DOES FOCUS CURRENTLY ON SMALL MANUFACTURERS ACROSS THE STATE.

SO, FROM YOUR PURVIEW, ARE THERE ANY OPPORTUNITIES TO EXPAND IT EVEN FURTHER, TO INCLUDE MANUFACTURERS THAT ARE CURRENTLY PRODUCING AT A LARGER SCALE?

SO, WE WANT TO SEE HOW THE NEW LAW WORKS.

THERE ARE TWO CRITERIA.

ONE IS, AS YOU MENTIONED, FOR DISTILLERIES, YOU'VE GOT TO BE PRODUCING UNDER A CERTAIN NUMBER OF GALLONS A YEAR.

IT'S REALLY TAILORED TO THE SMALL, SMALL-MEDIUM-SIZED DISTILLERIES AND CIDERIES THAT ARE IN NEW YORK STATE.

AND THEN THERE'S ALSO A RECIPROCITY CLAUSE SUCH THAT YOU'RE NOT ALLOWED TO SHIP OUT OF NEW YORK TO A DIFFERENT STATE UNLESS THAT STATE ALLOWS THEIR GOODS AND PRODUCTS TO BE ABLE TO BE SHIPPED INTO NEW YORK, AND SO THERE HAS TO BE RECIPROCITY.

AND RIGHT NOW, I THINK THERE ARE 10, 11, 12 OTHER STATES THAT HAVE SIMILAR LAWS THAT WILL ALLOW TO BE CROSS-SHIPPED.

AND SO, YOU KNOW, WE WANT TO SEE HOW THE NEW LAW WORKS, HOW IT'S IMPLEMENTED, AND THEN WE'LL CERTAINLY EVALUATE WHETHER THERE ARE OTHER OPPORTUNITIES TO TINKER WITH THE CURRENT DIRECT-TO-CONSUMER LAW.

I WILL SAY THERE IS A LOT OF OTHER REFORM THAT NEEDS TO TAKE PLACE IN THE ALCOHOL AND BEVERAGE CONTROL SPACE.

I'VE PROPOSED, AND SOME OF MY COLLEAGUES HAVE PROPOSED, ADDITIONAL SIGNIFICANT REFORMS THAT WOULD MAKE THE CURRENT VERY ANTIQUATED PROHIBITION-ERA STRUCTURE BROUGHT INTO THE 21ST CENTURY MORE CONVENIENT FOR CONSUMERS, MORE PALATABLE FOR SMALL BUSINESSES, IN PARTICULAR, LIKE BARS AND RESTAURANTS AND TAVERNS THAT STRUGGLE WITH A LOT OF THIS ANTIQUATED BUREAUCRACY AND NONSENSICAL REGULATION THAT EXISTS, AND THAT IS, QUITE FRANKLY, VERY EXPENSIVE FOR SOME OF THESE SMALL MOM-AND-POP RESTAURANTS AND BARS, IN PARTICULAR HERE IN NEW YORK STATE.

AND SO, THERE'S A LOT MORE TO COME, I HOPE, GENERALLY SPEAKING, TO THE ALCOHOL REFORM SPACE.

AND WHAT GUARDRAILS WILL BE PUT IN PLACE TO ENSURE THAT MANUFACTURERS ARE ADHERING TO LAWS AND ENSURING THAT THEY ARE CHECKING THAT CUSTOMERS ARE ABOVE THE LEGAL DRINKING AGE WHEN PLACING THOSE ORDERS TO SHIP?

SO, THE GOOD NEWS IS THAT, AS I SAID, THIS HAS ALREADY EXISTED FOR WINE FOR TWO DECADES, AND THERE ARE SAFEGUARDS, GUARDRAILS IN THOSE TWO DECADES OF WINE SHIPPING THAT'S TAKEN PLACE HERE IN NEW YORK, WHERE I AM NOT AWARE OF EVEN A SINGLE INSTANCE OF THERE BEING AN INAPPROPRIATE SHIPMENT OR SALE OF WINE THAT'S TAKEN PLACE OVER ALL THAT TIME.

BUT EVEN MORE DIRECT IS DURING COVID, THESE DISTILLERIES AND CIDERIES, FOR ABOUT A YEAR OR SO, WERE ALLOWED TO DIRECTLY SHIP, GIVEN THAT THEIR LOCATIONS WERE BY AND LARGE CLOSED AS A RESULT OF THE COVID PANDEMIC.

AND DURING THAT TIME, THERE WERE NO PROBLEMS; THERE WAS NO IRRESPONSIBLE SHIPPING TAKING PLACE OF THESE VERY SAME PRODUCTS.

AND SO, THE LAW IS VERY CLEAR: THESE PRODUCERS HAVE TO USE A CREDIBLE THIRD-PARTY SHIPPER LIKE UPS, FEDEX IN ORDER TO SHIP THEIR GOODS, AND THE DRIVER HAS TO GET A SIGNATURE FROM SOMEONE WHO IS OVER 21 YEARS OLD.

THEY HAVE TO BE CARDED, JUST AS IF SOMEONE WAS BUYING A DRINK AT A BAR.

AND SO UNDER NO CIRCUMSTANCE ARE THERE GOING TO BE INSTANCES WHERE UNDERAGE INDIVIDUALS ARE RECEIVING THESE PACKAGES OR ORDERING THESE PACKAGES, AND THE SAFEGUARDS ARE IN PLACE THAT HAVE BEEN IN PLACE FOR WINE, THAT WERE IN PLACE DURING COVID FOR THESE SMALL PRODUCERS.

AND I HAVE EVERY EXPECTATION THAT THIS IS GOING TO BE A SAFE AND RESPONSIBLE IMPLEMENTATION OF THE NEW LAW.

AND AS YOU MENTIONED, THE GUILD CAME OUT EARLIER THIS YEAR SAYING THAT THERE WAS A LOT OF CONCERN THAT OWNERS MAY NOT BE ABLE TO SUSTAIN THEMSELVES.

SO, DO YOU THINK THE LEGISLATION DOES ENOUGH TO ADDRESS THOSE CONCERNS THAT THEY RAISED?

YES, THIS NEW LAW IS A GAME CHANGER, AND YOU DON'T HAVE TO TAKE MY WORD FOR IT.

YOU CAN ASK THOSE VERY DISTILLERIES THAT ARE MEMBERS OF THE DISTILLERS GUILD HERE IN NEW YORK.

THEY WILL TELL YOU, THIS IS A MASSIVE GAME CHANGER FOR THEM.

IT OPENS UP A COMPLETELY NEW MARKETPLACE AND OPPORTUNITY FOR THEM, AND WILL ALLOW MANY OF THEM TO SURVIVE, WILL ALLOW MANY OF THE OTHERS TO THRIVE, AND WILL PROVIDE A NEW CONVENIENT MEDIUM FOR RESPONSIBLE ADULT CONSUMERS TO BE ABLE TO ENJOY SOME OF THESE HARDER-TO-REACH CRAFT PRODUCTS.

AND ARE THERE CURRENTLY ANY CONCERNS THAT THE LEGISLATION MAY NEGATIVELY IMPACT THE BRICK-AND-MORTAR RETAIL LIQUOR STORES ACROSS THE STATE NOW THAT THERE IS GOING TO BE AN INCREASED EMPHASIS ON THE DIRECT-TO-CONSUMER MODEL?

I DON'T HAVE ANY CONCERNS THAT THERE'S GOING TO BE A NEGATIVE IMPACT ON LIQUOR STORES HERE IN NEW YORK STATE.

I HAVE BEEN A STRONG SUPPORTER OF OUR MOM-AND-POP LIQUOR STORES OVER MY YEARS IN THE STATE SENATE, AND THAT WILL CONTINUE TO BE THE CASE.

AND ONE OF THE REALLY GREAT PRODUCTS OF THIS NEW LAW IS THAT THESE PARTICULAR SMALL CRAFT PRODUCTS THAT ARE BEING DISTILLED AND ARE BEING MADE AT CIDERIES THESE PRODUCTS ARE NOT HARDLY AT ALL FOUND ON LIQUOR STORE SHELVES.

WHEN YOU WALK INTO A LIQUOR STORE, YOU SEE THE BIG BRANDS PICKING UP 99% OF THE SHELF SPACE.

WE'RE TALKING TITO'S, AND WE'RE TALKING GREY GOOSE, WE'RE TALKING JIM BEAM.

THESE ARE THE TYPES OF BRANDS THAT TAKE UP THE SPACE IN LIQUOR STORES.

YOU MIGHT FIND A COUPLE OF BOTTLES OF SMALL CRAFT PRODUCTS THAT ARE MADE IN A FEW-MILE RADIUS OF THAT LIQUOR STORE, BUT IF YOU'RE IN ORANGE COUNTY, WHERE I AM, THERE'S NOT GOING TO BE A BOTTLE OF GIN OR WHISKEY PRODUCED IN FURTHER UPSTATE NEW YORK, TWO, THREE, FOUR, FIVE MILES AWAY.

THAT JUST DOESN'T EXIST.

AND SO, FOR THE CONSUMER IN MY AREA, WHO MAY HAVE VISITED ON A VACATION THE FINGER LAKES AND REALLY ENJOYED A BOTTLE OF GIN, THEY'RE NOT GOING TO FIND THAT IN ORANGE COUNTY.

NOW, THEY'LL BE ABLE TO GET THAT OCCASIONAL SHIPMENT FROM THAT DISTILLER FOUR HOURS AWAY THAT THEY COULDN'T ENJOY OTHERWISE.

AND SO, I DO NOT BELIEVE THIS TAKES ANY BUSINESS AWAY FROM OUR LOCAL LIQUOR STORES.

THIS IS A SUPPLEMENT TO THAT RESPONSIBLE DRINKING THAT OTHERWISE CANNOT BE FOUND.

THOSE PRODUCTS CANNOT BE FOUND IN A LOCAL LIQUOR STORE.

AND LASTLY, NOW THAT THE LEGISLATION HAS BEEN PASSED AND WILL GO INTO EFFECT IN THE COMING MONTHS AFTER IT HAS BEEN SIGNED BY THE GOVERNOR, HOW ARE YOU HOPING TO BUILD UPON THE WORK IN THE UPCOMING LEGISLATIVE SESSION?

I KNOW YOU MENTIONED SOME OF THOSE REFORMS.

YEAH, SO WE WANT TO BUILD ON THIS BY ENACTING FURTHER REFORMS TO THIS ANTIQUATED ALCOHOL SCHEME THAT WE HAVE HERE IN NEW YORK THAT DATES BACK TO THE PROHIBITION ERA.

ONE ADDITIONAL REFORM THAT I'VE BEEN PUSHING FOR, WE CAME CLOSE TO PASSING IT THIS YEAR.

THE SENATE PASSED IT.

THE ASSEMBLY DIDN'T TAKE IT UP FOR A VOTE.

IT WOULD ALLOW RESTAURANTS AND BARS TO BUY LIMITED QUANTITIES OF BOTTLES DIRECTLY FROM LIQUOR STORES BECAUSE SOMETIMES YOU CAN'T WAIT UNTIL THE NEXT WEEK FOR YOUR WEEKLY SHIPPING FROM THE DISTRIBUTOR THAT YOU DO BUSINESS WITH.

YOU MIGHT HAVE A PARTY IN YOUR BACK ROOM THAT'S ENJOYING GREY GOOSE, YOU RUN OUT OF GREY GOOSE, THAT NIGHTS, AND SO YOU CAN'T WAIT FIVE DAYS TO MAKE SURE THAT YOUR PATRONS ARE HAPPY AND HAVING A GOOD TIME AND ENJOYING THEIR DRINK OF CHOICE.

YOU SHOULD BE ABLE TO HEAD DOWN THE BLOCK TO THE LOCAL MOM-AND-POP LIQUOR STORE AND BUY A COUPLE OF BOTTLES IN A PINCH, IN AN EMERGENCY.

THAT'S THE TYPE OF REFORM THAT WE'RE LOOKING TO ADVANCE.

OF COURSE, THAT TOO, THAT BILL, WAS OPPOSED BY THE BIG DISTRIBUTION COMPANIES BECAUSE THEY WANT TO SUCK EVERY DOLLAR, EVERY PENNY THEY CAN FROM THIS PROCESS, FROM ALL OF THE SMALL BUSINESSES THAT MAKE UP THE ABC SYSTEM RESTAURANTS, BARS, TAVERNS, AND ALL THOSE, BUT AT THE END OF THE DAY, WE NEED TO CREATE SOME FLEXIBILITY, AND WITH THAT FLEXIBILITY COMES SAVINGS FOR THESE SMALL BUSINESSES.

SO THAT'S ANOTHER EXAMPLE OF AN ADDITIONAL REFORM THAT WE'RE TRYING TO PASS IN THE COMING SESSION.

WELL, CERTAINLY A LOT TO LOOK FORWARD TO.

UNFORTUNATELY, WE'LL HAVE TO LEAVE IT HERE FOR NOW, BUT WE THANK YOU SO MUCH FOR TAKING THE TIME TO SPEAK WITH US TODAY, SENATOR.

THANKS FOR HAVING ME.

AND WE WERE SPEAKING WITH STATE SENATOR JAMES SKOUFIS, REPRESENTING THE 42ND STATE SENATE DISTRICT.

[MUSIC] FOR MORE INFORMATION ON THAT LEGISLATION, YOU CAN VISIT OUR WEBSITE, THAT'S AT: NYNOW.ORG.