New York Alcoholic Beverage Market: Regulations, Statistics, Trends, and Wholesalers

When it comes to alcoholic beverages, the state of New York extends tremendous influence on the drinks sector at large as an absolute global trendsetter. As such many alcohol manufacturers, suppliers, and distributors look to establish a solid presence in the Empire State.

We’ve prepared a guide to the New York Market, which covers the following topics:

• Category consumption trends for spirits, wine, and beer
• The regulatory structure and oversight in New York
• Essential state laws, procedures and regulations
• Market facts and key players

New York had an approximate population of 19.7 million people in 2022 with 14.8 million of them within the legal drinking age bracket. The state ranks fourth on the list of states that consume the most alcohol, behind California, Texas, and Florida.

If you need help establishing your presence in the Empire State, provide your information below, and we’ll contact you to share more on how we can help.

Please watch the video directly below for a full introduction to the New York market.

Market Size

New York had an approximate population of 19.7 million people in 2022 with 14.8 million of them within the legal drinking age bracket. As such, it ranks fourth on the list of states that consume the most alcohol, behind California, Texas, and Florida.

Consumption Trends In New York

New York Spirits Consumption from 2015-2020 by 9-Liter Cases

New York Wine Consumption from 2015-2020 by 9-Liter Cases

New York Beer Consumption from 2015-2020 by 9-Liter Cases

New York State Alcohol Licensing

All U.S. states are regulated at a federal level according to the Federal Alcohol Administration Act. At a state level, New York is overseen by the New York State Liquor Authority (NYSLA) and regulated by the New York Alcoholic Beverage Law. The NYSLA controls licensing and maintains enforcement authority over all segments of the alcohol industry including:

• Manufacturers (breweries, wineries, distilleries, cideries, meaderies, and rectifiers)
• Wholesalers, also known as distributors
• Retailers (on-premise and off- premise )

In the simplest terms, manufacturers, sometimes referred to as producers, make the alcohol products. Wholesalers sell the alcohol to the retailers. Retailers sell the alcohol to consumers. While there are some exceptions to this flow of goods, this is the federally regulated route to market.

All businesses that deal with manufacturing, distributing, selling, or importing alcohol in New York must be licensed. More than 125 different kinds of licenses are available in order to achieve the proper brand registration, and price posting.

As of 2022, New York state had over 500 breweries, 400 wineries, and 200 distilleries based there.

Types of Licenses for Spirits Manufacturers based in New York

Distiller’s License – under this license a distiller may produce liquor with no cap on production volume, and no New York State ingredient requirements as to its products.

Micro Distiller’s License – a micro distiller has all the same privileges/responsibilities as a distiller, but has a 75,000 gallon limit on annual production.

Rectifier’s License – under this license a rectifier may not distill but can purify or combine alcohol, spirits, wine, or beer, make gin and cordials, and blend and reduce proof. A rectifier has no cap on annual production.

Micro-Rectifier’s License – a micro-rectifier has all the same privileges/responsibilities as a rectifier, but has a 75,000 gallon limit on annual production.

Farm Distillery License – this license grants a farm distiller the ability to produce liquor, but has a 75,000 gallon limit on annual production, and requires 75% New York State ingredients in its products.

Common Permits for Manufacturers Based Outside New York

Solicitor’s Permit – For alcohol suppliers based outside of New York, the state requires anyone who is making a sale on behalf of the brand to have a solicitor’s permit.

Marketing Permit – allows in-state or out-of-state manufacturers, wholesalers or importers to conduct tastings and take orders from licensed retailers on behalf of a New York wholesaler.

Licenses for Manufacturers based outside New York

Solicitor’s Permit – For alcohol suppliers based outside of New York, the state requires anyone who is making a sale on behalf of the brand to have a solicitor’s permit.

Common Permits

Marketing Permit – allows in-state or out-of-state manufacturers, wholesalers or importers to conduct tastings and take orders from licensed retailers on behalf of a New York wholesaler.

New York State Alcohol Regulations

New York is an open state, meaning the sale and distribution of alcoholic beverages is handled by private entities but still regulated by state legislators through the allocation of licenses.

Shipping and Selling to Consumers

New York’s ABC Law classifies licensees into three categories: manufacturers, wholesalers and retailers. Below is a breakdown of distribution and sales regulations for each type of license holder.

In-State Spirits Manufacturers:

• Can self-distribute product to New York retailers
• Can sell alcohol on their premises for on-site consumption or to go

Out-of-State Spirits Manufacturers:

• Cannot self-distribute to New York retailers
• Cannot ship direct to consumers in New York

Wine Manufacturers:

• May directly ship up to 36 cases of wine annually to an individual purchaser.
• Out-of-State wine manufacturers must first obtain a Direct Shipper’s License through the NYSLA.

Wholesalers:

• Purchase alcohol from in-state or out-of-state manufacturers
• Can sell alcoholic beverage to other licensed wholesalers and retailers

Retailers:

• Can sell product directly to consumers for on or off-premise consumption
• Can deliver directly to a consumer’s residence

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Common Fees, Procedures and Taxes in New York

Label Registration

All alcohol products sold in New York must have a label registration approved by the NYSLA in order to ensure products are in compliance with federal and New York label regulations. Low-proof wines under 7% abv must register with the state and have an approval lab analysis. Wine over 7% abv does not require registration, but it does require submission of an appointment letter and Federal label approvals.

Price Posting

Wine and liquor products sold in New York State must participate in price posting, which is the act of publicly sharing the price at which a product will be sold 1) to wholesalers and 2) to retail.

At wholesale, price postings are always due on the 25th of the month, two months before the month of sale, while retail postings are always due by the 5th of the month, one month prior to the month of sale.

New York Spirits Volume By Category – 2020 Data

Spirit trends in New York by volume and dollar sales in 2020.

Source: Beverage Information Group

New York Wine Volume Sales By Category – 2020 Data

Wine trends in New York by volume sales in 2020

Source: Beverage Information Group

New York Beer Volume Sales By Category – 2020 Data

Beer trends in New York by volume sales in 2020

Source: Beverage Information Group

Sources: sla.ny.gov, sevenfifty.com, srclawoffices.com, newyorkcraftbeer.com, newyorkwines.org