Beginning on October 15, 2018, any person holding a Class D Distiller’s License in New York, also known as a farm distillery license, will be permitted to engage in custom liquor production for a non-licensed individual for that individual’s personal or family use, much like beer, cider and wine producers currently are able to do.
In connection with such custom liquor production, the farm distillery must comply with the following conditions:
The authorizing law (Chapter 193 of the Laws of New York, 2018) is intended to offset some of the upfront investment risk farm distillers take when setting up their businesses by allowing them to produce their product to order and, therefore, more readily control raw material costs. In addition to reducing the distillery’s risk on the initial capital investment for resources, this law will allow individuals to be involved in the production of their own batch of custom liquor. Only time will tell whether it has the desired result. If so, a surge in new farm distillers could be coming to New York.
The foregoing has been prepared for the general information of clients and friends of the firm. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel. If you have any questions or require any further information regarding these or other related matters, please contact your regular Nixon Peabody LLP representative. This material may be considered advertising under certain rules of professional conduct.
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