Distillation

New York State is home to a thriving fermentation and distillation industry. This fact sheet details the rules and regulations necessary to operate a distillery and provides resources for further study and support. 

Any sugar-containing product can provide a basis for producing fermented, and usually alcoholic, beverages. Many different beverages are made from this process: cider, wine, kombucha, beer, mead, and braggot (a hybrid between beer and mead). Taking this process a step further into distillation results in liquors and spirits. In recent years there has been an increased interest in specialized fruit-based craft beverages, such as brandy and liqueur, growing the artisan distillation industry. 

Licensing and Regulations

To manufacture and distribute any alcoholic beverage in NYS, you must first obtain a license through the State Liquor Authority, as well as a permit from the Alcohol and Tobacco Tax and Trade Bureau. To obtain these you must have your own facility (or have facility tenancy) and produce your own product. New York is a ‘tied house’ state, meaning that if you manufacture alcoholic beverages, you cannot have a direct or indirect interest in a separate retail business that distributes alcohol. 

The New York State Liquor Authority has compiled a Distillery Quick Reference guide that lays out in detail the steps that must be taken to apply for these licenses, the requirements that need to be met, and the specific privileges these permits grant businesses and manufacturers. 

Resources

• Cornell Craft Beverage Institute (CCBI) through Cornell Agritech acts as a source of guidance and support for producers in New York State. The institute offers training and counseling, facilitates laboratory research and testing, as well as educational opportunities. Specifically, CCBI specializes in working with wine, beer, cider, and spirits. 
• New York State Liquor Authority provides resources and information for manufacturers, distributors, and retailers as well as information on permitting and licensing in NYS.
• Cornell Fruit Resources provides informational webinars, details about the Cornell viticulture and enology program, and general information for the distillation of fruits.

Funding

For information on grants and financial opportunities for your farming operation, visit the ‘Grant Opportunities for Farmers’ fact sheet.