To-go drinks will return to New York state after an abrupt cancellation of the pandemic-driven policy last June, Gov. Kathy Hochul announced during her State of the State address earlier this week.
“To-go drinks were a critical revenue stream for New York’s bars and restaurants during the pandemic, helping many small businesses across the state pay their rents or mortgages,” Hochul wrote in a document outlining her policy objectives for the year.
Cheers, New York!
We're going to once again allow the sale of to-go drinks – a critical revenue stream during the lean times last year. pic.twitter.com/WctvtA0HXz
— Kathy Hochul (@GovKathyHochul) January 5, 2022
Details have not been shared, but the change seems to apply to licensed on-premise retailers, which includes some – but not all – beverage alcohol manufacturers.
“If a producer has a separate retail license (tavern or restaurant) in addition to their manufacturing license, then yes, they would be included,” Joe Bonilla, former executive director of the Capital Craft Beverage Trail Association, told Brewbound. “However, the farm-based producers by statute are allowed to operate a tasting room, in which last year under the executive order was covered.
“Further, no indication from the governor’s office about introducing budget legislation on extending shipping and delivery privileges — which farm distilleries, breweries, cideries, and meaderies relied on during the lockdowns,” he continued.
Legislation to enact the to-go sales change is forthcoming, a spokesperson from Hochul’s economic development office told Albany-based WNYT, which interviewed Nine Pin Cider and Albany Distilling about their exclusion from the proposed return of to-go sales.
“It’s important to note that the issues raised by our craft beverage manufacturers are appreciated and understood,” deputy communications director for economic development Jason Gough told WNYT.
Most Empire State breweries have been able to sell beer for off-premise consumption before the pandemic era executive orders, New York State Brewers Association executive director Paul Leone told Brewbound. Breweries that offer full bar services will benefit from the ability to sell wine and spirits to-go, should those sales be made permanent, he added.
Late last year, Hochul signed into law a bill that allows any beverage alcohol manufacturer to apply for a temporary manufacturing permit while an application for a permanent permit is being processed. Temporary permits will be approved or denied within 45 days, which allows new producers to open much quicker than the former process, Syracuse, New York-based beer industry attorney Brendan Palfreyman explained on Twitter.
Huge news for the beer industry in NY. Liquor license applicants have long been able to apply for temporary permits while applications are pending.
Now, per S.6256A signed by @GovKathyHochul, breweries have the same ability! Cuts down time to open from ~6 months to 45 days! pic.twitter.com/3kfjEAAapG
— Brendan Palfreyman Esq. (@B_Palfreyman) January 5, 2022
“There are currently about 90 craft manufacturers waiting on licenses,” Leone said. “This will allow many of them to open right away once the permit is created by the State Liquor Authority, which will be in about 60-90 days.”
California Expands To-Go Privileges
California has expanded to-go sales of alcoholic beverages for certain on-premise license holders though January 1, 2027, the state’s Alcoholic Beverage Control announced.
On-premise establishments with the following license types now have the ability to sell distilled spirits in manufacturer-sealed containers, cocktails and single servings of wine to go:
- Eating places that offer beer and wine (License 41);
- Eating places that offer beer, wine and spirits (License 47);
- Brewpubs (License 75);
- Beer manufacturers (License 1);
- Winegrowers (License 2);
- Small beer manufacturers (License 23);
- Craft distillers (License 74).
Packaged beer was allowed to be sold to-go prior to the passage of SB-389, which expanded privilege for cocktails and single servings of wine. However, beer cannot be sold to-go in containers that have not been sealed by the manufacturer. Retailers may sell growlers, but those growlers must be filled by the brewer, according to the California Craft Brewers Association.
All to-go alcohol sales must be accompanied by a bonafide meal, as the California ABC defined in July 2020 during heightened on-premise restrictions due to the COVID-19 pandemic.
Spirit-Based, Ready-to-Drink Cocktail Offerings Back on Table in Pennsylvania
A bill that would give off-premise retailers the ability to sell spirit-based RTDs passed the Pennsylvania Senate late last year, according to PennLive.
Pennsylvania, a control state in which spirits must be sold at state-run liquor stores, has grappled with the sale of RTDs outside of state stores for months. A proposal to allow the sale was included in a larger bill that would have made permanent the sale of cocktails to-go from on-premise retailers last spring, but Gov. Tom Wolf did not support expanded privileges for RTDs.
The Senate bill would cap RTDs at 12.5% ABV and 16 oz. packages. Consumers would be able to purchase a maximum of 192 oz. – 16 servings of 12 oz. cans or bottles or 12 servings of 16 oz. cans or bottles. The bill was passed by a 26-24 vote and advances to the Pennsylvania House of Representatives, where a similar bill failed during the summer.
New Jersey Mulling Brewery Operations Changes
A pair of bills proposing changes to operations for both large and small breweries were introduced during the New Jersey state Legislature’s last session.
Senate Bill 4120 would have codified event-hosting privileges for the state’s breweries both on- and off-site. It specified that breweries could not include free drinks or discounted drinks in event cover charges or require drink purchases as a condition of event attendance.
Assembly Bill 6086 would have allowed breweries to host 52 special events and 52 private parties on-site annually. It also included an increase to the volume restricted brewery license holders could produce from 10,000 barrels to 50,000 barrels annually.
The Legislature’s session ended, but Brewers Guild of New Jersey executive director Eric Orlando told Brewbound bills introduced toward the end of a session can indicate lawmakers’ focal points during the next session.
“Bills like this are laying the foundation in terms of where the discussion is headed in the legislative session in terms of what breweries’ needs are and what kind of priorities they want to work on,” he said.
The next session is slated to begin January 11.