New Law Cheered by Wineries

New Law Cheered by Wineries

8/19/2011

 

Up to five branch stores could now be operated by farm wineries under one license as part of the new law that reduces state regulations on the wine industry.

Although wine makers in the state still have to convince lawmakers in New York to permit the sale of their products in various grocery stores, The Fine Winery Law contains provisions that have been recommended in a 2008 report submitted by the state Wine Grape Task Force to. Among the recommendations made was the easing of legal restrictions that, according to advocates, were curtailing growth in the industry.

Gov. Andrew Cuomo, who signed the legislation into law on July 22 said, “This bill is a huge boost for wineries across the state. Reducing the regulatory burdens on farm wineries will allow them to continue to thrive as a key tourism, agricultural and economic engine for our state.”

Under the previous system, wineries desiring to open new satellite stores have to obtain separate licenses for each outlet. The law will employ a new policy where branch stores will no longer be considered as separate entities. This will make it easier for state wineries to expand their operations and increase their sales.

New York, which is presently the third largest wine producing state, earned revenues amounting to $3.76 billion in 2008 from the wine industry. There are around 1,400 wineries in the state of New York today.

Sen. Catharine Young, a Republican from Olean and a sponsor of the bill, said, “Not only will this new law permit both New York farm wineries and the state Liquor Authority to operate more efficiently, it also will allow these private businesses and state government to cut costs. This initiative is exactly what our state needs to generate more economic vitality, opportunity and prosperity.”

WRITTEN BY:

blakeh@wellsdrew.com