New York expands direct to consumer alcohol shipping: What all distilleries need to know
In a huge move for New York's craft beverage industry, Governor Kathy Hochul has signed Senate Bill S2852A expanding direct to consumer (DTC) shipping rights for distilleries, cideries, and meaderies. This legislation, set to take effect on November 16, 2024, opens up new opportunities for New York distilleries to reach customers across the state and beyond.
Key points for distilleries:
Intrastate shipping: Licensed New York distilleries can now ship up to 36 cases (9 liters per case) of liquor directly to in-state residents annually.
Interstate shipping: Out-of-state distilleries can obtain a license to ship to New York residents, provided their home state offers reciprocal privileges to New York distilleries. Those include Arizona*, Kentucky, Nebraska, New Hampshire, North Dakota, Rhode Island, Vermont and DC.
Expanded product range: The law covers spirits, cider, mead, and braggot.
Age verification: Strict age verification processes are required for all DTC shipments, ensuring compliance with legal drinking age requirements.
Labeling requirements: Shipped containers must be clearly labeled as containing alcoholic beverages and requiring an adult signature.
Record keeping: Distilleries must maintain detailed records of all DTC shipments for at least three years.
*produces less than 20,000 gallons of product per calendar year.
Impact on distillery e-commerce and clubs
This new law significantly enhances the potential for New York distilleries to grow their e-commerce presence and develop distillery clubs. With the ability to ship directly to consumers, distilleries can now:
Offer exclusive products to club members statewide.
Expand their customer base beyond local markets.
Ship all products they are licensed to sell in the same case.
Provide a seamless online shopping experience for spirits enthusiasts.
Compliance and implementation
As the law takes effect, distilleries should ensure their e-commerce platforms and shipping processes comply with all new requirements. This includes age verification systems, proper labeling, and meticulous record-keeping.
For New York distilleries looking to capitalize on this opportunity, partnering with an experienced DTC platform like Vinoshipper can streamline the process and ensure full compliance with the new regulations.
Stay tuned for more updates as we approach the November 16, 2024 implementation date. Exciting times are ahead for New York's distillery industry!
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