I own a New York craft distillery; businesses like mine are dying
This guest essay reflects the views of Mark Heuwetter, co-founder of Harbor Lights Stillhouse in Huntington.
New York State’s craft distilleries are facing extinction. A once-thriving industry filled with hope is collapsing under the constraints of a system that severely limits its market access. More than 20 of New York’s 180 distilleries closed in the last year. Even more alarming: A New York State Distillers Guild survey in April that asked members whether they would close operations if economic conditions did not improve by 2025; 17% responded “yes” and 33% responded “not sure.”
State legislative leaders can avert this crisis if they look to the New York wine industry for a solution.
Since 2005, New York wineries have safely shipped directly to consumers, allowing wineries to build their brands and reach their fans nationwide while benefiting tourism, agriculture, and job creation and generating billions in state and local tax revenues.
Our New York distillers are asking for all alcohol manufacturers to have the same opportunities to reach consumers. Without leveling the playing field, distillers will continue to disappear, along with their well-paying jobs and a $3.2 billion ecosystem impacting local tourism, local farmers, and regional and state tax revenues.
Our opposition contends that direct-to-consumer shipping would be unsafe and lead to an increase in underage drinking. The thought is illogical since manufacturers would utilize the same age-verification technology and shipping methods as our New York wine manufacturers and other retailers that ship direct-to-consumer. Why would we be any less capable of shipping than other licensees?
Others suggest further studies on direct-to-consumer shipping before changing the system. What further evidence of the efficacy and safety of direct-to-consumer shipping is needed beyond the glowing example of New York’s nearly 20 years of legalized wine shipping? Over this period, underage drinking has declined every year as wine manufacturers safely reached consumers with zero reported issues of shipments to minors.
Additionally, for more than a year during the pandemic, our distillers used a COVID-19 exemption to safely ship to consumers throughout the United States with no reported issues by any law enforcement, liquor authority, or taxing agency.
Manufacturer direct-to-consumer shipping is not an attempt to take market share away from New York’s neighborhood bottle shops or disrupt the distribution tiers. New York distillers are pro-retail. Retailers carrying our spirits offer the most convenient and cost-effective method for fans to get their spirits; however, with hundreds of distilleries and thousands of products there is not enough shelf space for our brands.
Unfortunately, more than 60% of New York’s craft distillers do not have a distributor in the state, so we self-distribute. Even fewer have distribution outside of New York. The finite amount of space on brick-and-mortar retail shelves means store owners must make hard decisions about what to carry. Distributors, in turn, are obliged to respond to that demand. We get it. But this dynamic leaves many craft distillers holding inventory they’re not legally permitted to sell until someone walks into their tasting room.
Allowing direct-to-consumer shipping for New York craft distillers ensures the breadth of choice that 87% of U.S. consumers say they want and virtually guarantees the viability of New York’s distilling industry for generations to come.
Passage of legislation in the State Senate and Assembly will give New York’s craft distilleries, cideries, and meaderies a fighting chance by providing access to the same opportunities the wine industry has proved to be safe, effective and transformational.
New Yorkers are all in this together. We can save an industry if we say it loud enough so lawmakers will hear us in Albany.
This guest essay reflects the views of Mark Heuwetter, co-founder of Harbor Lights Stillhouse in Huntington.