Skip to content

News

New York Liquor Licensing For Alcohol Brand Owners

high rise buildings during night time

Brand ownership has become a popular pursuit for entrepreneurs eager to break into the alcoholic beverage market. It often involves a business that owns the brand, formula and trade dress but never takes title to product.

This option has several benefits for emerging businesses. Startup costs tend to be lower because inventory and equipment do not need to be purchased or stored. Time can be spent on promoting the brand, rather than manufacture, logistics and other aspects of making, selling, and moving alcohol. Well-crafted agreements with manufacturers and wholesalers may bring opportunities for marketing channels and brand growth.

As always, it is important to understand the relevant laws and regulations that govern these arrangements.

Only Licensed Wholesalers May Sell Alcohol to Retailers.

            Except in the case of private collections, New York’s Alcoholic Beverage Control Law (“ABCL”) only permits licensed retailers to purchase from manufacturers and wholesalers licensed by the State Liquor Authority (“SLA”).

            Although New York does not require out-of-state shippers’ permits, even if brand owners hold federal basic wholesaler and/or importer permits, without a New York license, they must rely on an in-state wholesaler.

Marketing Brands to New York Consumers

            The ABCL enumerates various situations in which companies may lawfully sample and sell alcoholic beverages to New York consumers. Brand owners that are not licensed by the SLA are generally limited to the privileges of the Marketing Permit.

A Marketing Permit authorizes a supplier to conduct tastings and provide samples to consumers of its products. It also authorizes a supplier to accept orders from licensed retailers on behalf of licensed in-state wholesalers, and sell their products by the bottle directly to consumers during tastings. To qualify for the Marketing Permit, a brand owner must hold a manufacturing license from the state in which it operates or a federal basic importer permit. A brand owner that holds only a federal basic wholesaler permit, but not a manufacturing license is not eligible for a Marketing Permit.

Whether a brand owner qualifies for a Marketing Permit, it should consider obtaining an Importer License from the SLA. An Importer License is available for those who wish to import goods into New York and sell those goods to New York licensed wholesalers. It is not available for goods manufactured in New York and it does not authorize sales directly to retailers.

As noted, the holder of an Importer License does qualify for a Marketing Permit.  An Importer License solves one additional serious problem for a brand owner. A person with a license generally is not permitted to share income from the sale of alcoholic beverages with a retailer or a non-licensed person. Without a license, the brand owner’s ability to receive payments from a supplier or wholesaler based upon a percentage of sales is extremely limited. By obtaining the proper license, the brand owner’s ability to participate in the profits from the sale of the brand expand significantly.

This article is not intended to give specific legal advice.  Before taking any action, the reader should consult with an attorney familiar with the relevant facts and circumstances.

Written by

Keven Danow

Keven Danow

Founding and Senior Partner
Read bio

Categorized in

Latest News

Stay informed on the critical current issues impacting the beverage alcohol industry

The Rules Are Changing

Recently the TTB has been examining its regulations and making adjustments. There is an extensive process which the TTB must follow before it can change a regulation, which includes publishing the proposed rule and allowing the public to comment.   STANDARDS OF FILL Effective January 10, 2025, the TTB amended its regulations related to standards of […]

Limitations On Gifts And Services

Under §101 of New York State’s Alcoholic Beverage Control Law, suppliers and wholesalers  (“Industry Members”) are forbidden to “Make any gift or render any service of any kind whatsoever, directly or indirectly, to any person licensed under [the alcoholic beverage control law] which in the judgment of the liquor authority may tend to influence such licensee to purchase the […]

Mandatory Information And Social Media

Suppliers and wholesalers (“Industry Members”) must comply with the TTB’s mandatory advertising requirements set forth in the regulations under §§ 4.62 (wine), 7.233 (malt beverages) and 5.233 (spirits).

Ready to get started?

Attorney Advertising: The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.
The Danow Group PLLC is the successor to Danow, McMullan & Panoff, P.C.
The Danow Group PLLC is a professional limited liability company formed under the laws of the state of New York.
© 2025 All Rights Reserved, The Danow Group, PLLC
new york web designers