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In the grape and wine industry, we're always talking about the climate, because after all you need a good climate to grow good grapes that make great wine. But people often forget that you also need a good business climate to grow an industry--and that's what New York now has, thanks to the leadership of Governor Andrew Cuomo and his partnership with the State Legislature.
On Tuesday, the Governor hosted his second Wine, Beer, Spirits & Cider Summit in Albany, which was every bit as dramatic and uplifting as the first one in October 2012.
Moderated by Lieutenant Governor Robert Duffy, this one began with a short video and discussion of key results since the first Summit by Commissioner Kenneth Adams of Empire State Development, Commissioner Richard Ball of Agriculture & Markets, and Chairman Dennis Rosen of the New York State Liquor Authority.
It's truly amazing how much has happened, and changed, in a short 18 months, spurring the acceleration of growth in the number of farm-based beverage licenses, which have increased 83% since the first quarter of 2011 when Governor Cuomo took office.
The morning session also included comments and specific suggestions from representatives of the four beverage sectors, including Yours Truly, about additional initiatives in the areas of regulation, legislation, and promotion that could stimulate further industry growth and prosperity. A recent economic impact study showed that the New York grape and wine industry generates more than $4.8 billion in annual economic benefits to the State, including more than $400 million in State and local taxes and 5,000,000-plus tourist visits to the wine regions. Similar studies are now underway for the other three sectors, providing benchmark data to measure the effects of future growth.
Legislative Initiatives
After lunch, a series of major new initiatives was announced based on the morning's industry input. On the legislative front, the Governor announced his plan to introduce a comprehensive "Craft New York Act" to consolidate and simplify manufacturers' licenses; raise production limits and lower licensing fees for craft manufacturers; expand marketing opportunities; modernize shipping laws; and increase retail outlets where small craft manufacturers can sell, serve, and offer samples of their products.
Separately, he will also champion legislation authorizing the Department of Agriculture & Markets to administratively designate wine trails across the state, greatly reducing the delays now caused by the current system requiring legislative approval for even the smallest change.
Both of these legislative initiatives will provide major benefits to the farm-based craft beverage sectors and their ability to contribute to the State's economy.
Regulatory Changes
In the area of regulation, the State Liquor Authority, Department of Agriculture & Markets, and Department of Taxation and Finance will each issue advisories clarifying laws and regulations that previously caused confusion. The agencies will also take a variety of actions that will propel additonal growth within the industry.
Among those are eliminating unnecessary paperwork and clarifying standards on brand label registrations and the sales of growlers of beer and cider; eliminating the need for farm wineries to obtain a $1,000 surety bond; allowing combined shipments of products from multiple licensees; and clarifying the new "roadside farm market law".
(The SLA published these advisories just two days after the Summit...how's that for FAST?!) To view the SLA advisories, visit http://www.sla.ny.gov.
Marketing and Promotion Programs
Marketing and tourism opportunities, on top of those already undertaken since the first Summit, were in abundance, including:
-- A Taste NY marketing and branding campaign at more than 1,000 liquor stores which sell wines and spirits
-- Tripling the number of restaurants (now over 100) participating in the Pride of NY Restaurant Pledge to increase their use of New York products
-- Bus tours and access from New York City to the State's wine and beverage trails in various regions
-- Construction of new rental cottages in Sampson State Park on Seneca Lake to support Finger Lakes Wine Trail tourism
-- Doubling the number of Taste NY events, which provide huge exposure for New York beverages and foods
-- Appointment of Taste NY ambassadors to promote New York products and events
-- Showcasing of New York beverages and foods at Saratoga Race Course
-- Creation of the first official New York State Fair Beer
-- A repeat of the Governor's Cup Wine Tour in conjunction with our New York Wine & Food Classic in August.
The State will spend $1 million on a targeted advertising campaign to support the four beverages, plus $1 million on tourism promotion in support of them. An additional $2 million of matching funds will be made available to not-for-profit organizations whose primary purpose and mission is the promotion and marketing of New York produced wine, beer, spirits and cider. In short, including the private sector match, the Governor has committed a total of $6 million to raise the profile of New York's beverge producers through marketing and promotion.
"One Stop Shop" Enhancements
New York is the only state which has a "One Stop Shop" that beverage producers may call or email with any question--about licensing, taxation, environment, and anything else--and know that they will receive a prompt, official answer. Staffed by Sam Filler at Empire State Development, this service is an outgrowth of the first Summit, and has been an invaluable service for the farm-based craft beverage sector. Hundreds of small businesses have already benefited from the service.
At this week's Summit, Governor Cuomo announced some enhancements including the marketing of state financing options to the farm-based beverage industry; an on-line marketplace to connect farmers to beverage producers; a new business mentor program; and state-operated webinars on a variety of industry related topics.
In addition, Governor Cuomo directed the Department of Agriculture & Markets to work with federal and private sector partners to support the recovery of growers who may suffer damage due to this year's severe winter weather. This inclues identifying financial and technical assistance; investigating the extent of damage and, when appropriate, allowing farm wineries to purchase out-of-state grapes; and working with the federal government on securing adequate crop insurance.
Taste NY at the Mansion
Fittingly, this day of great news was capped by a tasting of great New York wines, beers, spirits, and ciders, along with some classic New York foods, at the Executive Mansion. This gave us time to absorb all we had just heard, thank the Governor personally, and toast a brighter future for everyone.
Unlike the climate outside, which is beyond the control of humans, the business climate is created by humans, and especially those in public office. For years, the business climate for the grape and wine industry in New York was overcast, and at times even stormy.
Today, the sun is shining, the air is warm, and the forecast is bright.
Cheers!
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